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Can D.C. afford to give all workers 16 weeks of paid family leave? Depends on whom you ask. Can D.C. afford 16 weeks of paid leave for workers? That depends.
(35 minutes later)
In the four months since D.C. lawmakers proposed making the nation’s capital the most generous place in the country for paid family leave, there has been a giant hole in the debate: the missing financial analysis explaining how the city could afford to be more like Europe and let workers take 16 weeks of paid time off.In the four months since D.C. lawmakers proposed making the nation’s capital the most generous place in the country for paid family leave, there has been a giant hole in the debate: the missing financial analysis explaining how the city could afford to be more like Europe and let workers take 16 weeks of paid time off.
On Thursday, a study funded by the Obama administration will finally be made public. And to the delight of proponents, it will show that a new tax of less than 1 percent could pay for the entire program. On Thursday, such a study funded by the Obama administration will be released. And to the delight of proponents, it will show that a new tax of less than 1 percent could pay for the entire program.
It will also be hotly contested. A competing study set to be released by business groups will say that costs to employers could be 350 percent higher. And the District’s chief financial officer may weigh in with an even bigger range, saying that the total price tag of the new policy remains a question mark because it’s not clear how many more people would take leave if their salaries were covered. It also will be hotly contested. A competing study set to be released by business groups will say that costs to employers could be 350 percent higher. And the District’s chief financial officer may weigh in with an even bigger range, saying that the total price tag of the new policy remains unclear because it’s not apparent how many more people would take leave if their salaries were covered.
The barrage of competing numbers promises to increase pressure on the D.C. Council to dial back what proponents have hoped would be a landmark advance in paid time off for new parents, grieving families, and sick workers, allowing them to recuperate without the worry of being able to make ends meet. Some paid sick-leave proponents are blaming the administration of D.C. Mayor Muriel E. Bowser (D) for orchestrating the confusion. The barrage of competing numbers promises to increase pressure on the D.C. Council to dial back what proponents have hoped would be a landmark advance in paid time off for new parents, grieving families and sick workers, allowing them to recuperate without the worry of being able to make ends meet. Some paid sick-leave proponents are blaming the administration of D.C. Mayor Muriel E. Bowser (D) for orchestrating the confusion.
Under the legislation before the council, almost every part-time and full-time employee in the nation’s capital would be entitled to 16 weeks of paid family leave to bond with an infant or an adopted child, recover from an illness, recuperate from a military deployment or tend to an ill family member. Under the legislation before the council, almost every part-time and full-time employee in the city would be entitled to 16 weeks of paid family leave to bond with an infant or an adopted child, recover from an illness, recuperate from a military deployment, or tend to an ill family member.
[D.C.’s family leave program could be the most generous in the U.S.][D.C.’s family leave program could be the most generous in the U.S.]
The financial analysis underpinning the plan was launched under former Mayor Vincent C. Gray (D) and paid for with a grant from the Obama administration. The president’s labor department has encouraged local jurisdictions to do what a Republican-led Congress won’t by advancing aggressive new paid-leave policies, calling them key to closing the economic divide between the rich and working class. The financial analysis underpinning the plan was launched under former mayor Vincent C. Gray (D) and paid for with a grant from the Obama administration. The Labor Department has encouraged local jurisdictions to do what a Republican-led Congress won’t by advancing aggressive new paid-leave policies, calling them important to closing the economic divide between the rich and working class.
The report by the Institute for Women’s Policy Research was delivered to the city in mid-November and the president of the organization said she was promised it would be made public within days. But it was kept under wraps until now, and is being released on the same day as the competing proposals by groups that have urged Bowser to move more slowly. The report by the Institute for Women’s Policy Research was delivered to the city in mid-November, and the president of the organization said she was promised it would be made public within days. But it was kept under wraps until now and is being released on the same day as the competing proposals by groups that have urged Bowser to move more slowly.
Bowser spokesman Michael Czin said the administration was busy “vetting” the report through the holidays. He also said the administration would propose further study in testimony before the council on Thursday. Bowser spokesman Michael Czin said the administration was busy vetting the report through the holidays. He also said the administration would propose further study in testimony before the council Thursday.
City Administrator Rashad Young will propose that any change in the city’s paid family leave program be studied in conjunction with a possible November ballot measure that could force the city to raise its minimum wage to $15 and with other worker benefit expansions now under consideration by the council. City Administrator Rashad M. Young will propose that any change in the city’s paid family-leave program be studied in conjunction with a possible November ballot measure that could force the city to raise its minimum wage to $15 and with other worker benefit expansions under consideration by the council.
“We’re going to put together a working group of stakeholders from government to really look and take a holistic approach and leverage our resources to create pathways to the middle class,” Czin said.“We’re going to put together a working group of stakeholders from government to really look and take a holistic approach and leverage our resources to create pathways to the middle class,” Czin said.
[D.C. residents love the idea of paid leave, just not the idea of paying for it][D.C. residents love the idea of paid leave, just not the idea of paying for it]
Bowser’s reluctance to quickly embrace an ambitious family leave program could further strain her relationship with liberals and progressives, some of whom have questioned whether she is too cozy with business interests since she reversed course and backed a mega-merger of Pepco, the city’s electric utility, with Exelon, a Chicago-based nuclear energy giant. Bowser’s reluctance to quickly embrace an ambitious family-leave program could further strain her relationship with liberals and progressives, some of whom have questioned whether she is too cozy with business interests since she reversed course and backed a merger of Pepco, the city’s electric utility, with Exelon, a Chicago-based nuclear energy giant.
Heidi Hartmann, president of the Institute for Women’s Policy Research, said her organization modeled the likely costs to D.C. on the experience of New Jersey and California, which have had smaller paid family leave programs for years. Heidi Hartmann, president of the Institute for Women’s Policy Research, said her organization modeled the likely costs to the city on the experience of New Jersey and California, which have had smaller paid family-leave programs for years.
The IWPR model predicted that a total of 110,000 people in the city would take paid leave in the first year, compared to roughly 100,000 who take unpaid leave now. Less than 13,000 of those would be for maternity and bonding with new children. Less than 20,000 would be for taking care of family members, and almost 50,000 would be for workers dealing with their own medical problems. The IWPR model predicted that a total of 110,000 people in the city would take paid leave in the first year, compared with roughly 100,000 who take unpaid leave now. Less than 13,000 of those would be for maternity and bonding with new children. Less than 20,000 would be for taking care of family members and almost 50,000 would be for workers dealing with their own medical problems.
The total cost in benefits paid would be about $200 million, according to an analysis by the organization.The total cost in benefits paid would be about $200 million, according to an analysis by the organization.
The study provided to the city in November did not directly analyze the legislation introduced in October, but the group has paid for modeling out of other grants it has received from philanthropic groups to help inform the debate in the city, Hartmann said. The study, provided to the city in November, did not directly analyze the legislation introduced in October, but the group has paid for modeling with other grants it has received from philanthropic groups to help inform the debate in the city, Hartmann said.
The group’s report, however, made clear it supported the proposal. For employers, the report said, paid family leave would increase productivity, employee morale and loyalty. For employees, it would improve peace of mind and better health outcomes for children. The group’s report, though, made clear that it supported the proposal. For employers, the report said, paid family leave would increase employee productivity, morale and loyalty. For workers, it would improve peace of mind and better health outcomes for children.
D.C. currently requires businesses with 20 or more employees to grant workers the right to take up to 16 weeks of unpaid family leave and 16 weeks of unpaid medical leave in a 24-month period. The city also requires employers to provide three to seven days of paid sick leave, depending on the size of the company. The District currently requires businesses with 20 or more employees to grant workers the right to take as many as 16 weeks of unpaid family leave and 16 weeks of unpaid medical leave in a 24-month period. The city also requires employers to provide three to seven days of paid sick leave, depending on the size of the company.
D.C. government employees may receive up to eight weeks of paid leave under a measure passed two years ago.D.C. government employees may receive up to eight weeks of paid leave under a measure passed two years ago.
The IWPR said the costs of increasing all of those benefits to 16 weeks of paid leave were manageable with a 0.63 percent tax on employers. The IWPR said the costs of increasing all of those benefits to 16 weeks of paid leave were manageable, with a 0.63 percent tax on employers.
“Based on the experiences of states that provide paid family and medical leave, and the simulation model results reviewed D.C. could set up and administer any of the programs examined for less than one percent of payroll. “Based on the experiences of states that provide paid family and medical leave, and the simulation model results reviewed, D.C. could set up and administer any of the programs examined for less than 1 percent of payroll.”
A report prepared for the Washington Board of Trade disputed that. It found that the total costs could exceed $700 million annually and require a much larger tax increase on employers. A report prepared for the Greater Washington Board of Trade disputed that. It found that the total costs could exceed $700 million annually and require a much larger tax increase on employers.
Jim Dineger, head of the board, said that the organization was willing to work on a compromise, but that proponents must take into consideration the regional effects if businesses in Maryland and Virginia do not have to provide comparable benefits and pay similar costs. Jim Dinegar, head of the board, said that the organization was willing to work on a compromise but that proponents must take into consideration the regional effects if businesses in Maryland and Virginia do not have to provide comparable benefits and pay similar costs.
Council member David Grosso (I-At large) said he was willing to adjust the benefits so that employers pay no more than 1 percent of payroll to provide the benefit. Council member David Grosso (I-At Large) said he was willing to adjust the benefits so that employers pay no more than 1 percent of payroll to provide the benefit.
“We can do this,” he said.“We can do this,” he said.