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Paid family leave moves forward in D.C. How far will city leap ahead of U.S.? Paid family leave moves forward in D.C.
(35 minutes later)
A proposal in D.C. to give employees months of paid time off to care for a new baby, a dying parent or to recover from a personal illness passed a key test this week even as a new threat to the plan emerged. A proposal in the District to give employees months of paid time off to care for a new baby, a dying parent or to recover from a personal illness passed a key test this week even as a new threat to the plan emerged.
In a win for advocates, a controversial plan for how to pay for the benefit taxing employers won the backing of a fiscally conservative lawmaker who controls if the measure moves forward. In a win for advocates, a controversial plan for how to pay for the benefit taxing employers won the backing of a fiscally conservative lawmaker who controls whether the measure moves forward.
Mayor Muriel E. Bowser (D), however, grew more openly hostile toward the proposal. She told a meeting of city residents that cost estimates for the legislation are “all over the place,” and chided Council Chairman Phil Mendelson (D) for not including her in deciding details of such a major new District policy.Mayor Muriel E. Bowser (D), however, grew more openly hostile toward the proposal. She told a meeting of city residents that cost estimates for the legislation are “all over the place,” and chided Council Chairman Phil Mendelson (D) for not including her in deciding details of such a major new District policy.
Mendelson’s announcement of support marked a surprising reversal for the powerful District lawmaker.Mendelson’s announcement of support marked a surprising reversal for the powerful District lawmaker.
[D.C.’s paid leave law would be the most generous in the U.S.][D.C.’s paid leave law would be the most generous in the U.S.]
For the past two years, much of the chairman’s energy has gone to holding together a package of tax cuts for city residents and businesses. But in an interview before a final hearing on the leave bill Thursday, Mendelson said he had become convinced that the issue was worth adding on a new cost to businesses in the city, and, in fact, could make jobs in the District more attractive to employees. “It is a worthy enough idea that I think it merits a payroll tax,” Mendelson said of paid leave.For the past two years, much of the chairman’s energy has gone to holding together a package of tax cuts for city residents and businesses. But in an interview before a final hearing on the leave bill Thursday, Mendelson said he had become convinced that the issue was worth adding on a new cost to businesses in the city, and, in fact, could make jobs in the District more attractive to employees. “It is a worthy enough idea that I think it merits a payroll tax,” Mendelson said of paid leave.
His position, which is now in line with a majority of council members, appears increasingly certain to draw the city’s Democrat-controlled legislature into an uncomfortable conflict with Bowser, a moderate Democrat — and in a presidential election year in the nation’s capital. While Bowser maintains that the city needs to weigh carefully the costs of such a new benefit to businesses and to city government, both Hillary Clinton and Sen. Bernie Sanders have struck a more populist message on family leave. Both have signaled support for the measure in D.C., which would double or more paid leave benefits in any state. His position, which is now in line with a majority of council members, appears increasingly certain to draw the city’s Democrat-controlled legislature into an uncomfortable conflict with Bowser, a moderate Democrat — and in a presidential election year in the nation’s capital. While Bowser maintains that the city needs to weigh carefully the costs of such a new benefit to businesses and to city government, both Hillary Clinton and Sen. Bernie Sanders have struck a more populist message on family leave. Both have signaled support for the measure in the District, which would doublethe paid leave benefits in the few states that offer them.
The question that now remains for the council is how much paid leave the city could guarantee for a 1-percent tax on employers in the city. [Can D.C. really afford paid leave?]
In the interview, Mendelson said 1 percent is the maximum he could support. His decision, however, drew only muted praise from advocates because Mendelson said that he believes the lengths of leaves, the numbers of employees who could claim the benefit and the pay those employees would receive while away from work would likely all have to be smaller than advocates had originally hoped. The question that now remains for the council is how much paid leave the city could guarantee for a 1 percent tax on employers in the city.
Under legislation introduced in the fall, employees in D.C. would be able to take up to 16 weeks of paid time off for the birth of a child, to care for an ailing relative or for a personal medical issue. Employees could have also been reimbursed for 100 percent of their pay, up to $3,000 per week. In the interview, Mendelson said 1 percent is the maximum he could support. His decision, however, drew only muted praise from advocates because Mendelson said that he believes the length of leave, the number of employees who could claim the benefit and the pay those employees would receive while away from work would likely all have to be smaller than advocates had originally hoped.
Under legislation introduced in the fall, employees in the District would be able to take up to 16 weeks of paid time off for the birth of a child, to care for an ailing relative or for a personal medical issue. Employees could also be reimbursed for 100 percent of their pay, up to $3,000 per week.
But the District’s chief financial officer and independent researchers cast doubt on whether a 1 percent tax could cover such expenses, especially if many employees take the full 16 weeks off for personal medical reasons.But the District’s chief financial officer and independent researchers cast doubt on whether a 1 percent tax could cover such expenses, especially if many employees take the full 16 weeks off for personal medical reasons.
In a new draft of the leave legislation that Mendelson released this week, he proposed scaling back the duration of employees’ leave to 12 weeks, as well as reducing the percentage of pay that high-income earners could recoup.In a new draft of the leave legislation that Mendelson released this week, he proposed scaling back the duration of employees’ leave to 12 weeks, as well as reducing the percentage of pay that high-income earners could recoup.
The District program would reimburse minimum-wage workers at 100 percent. Wages up to twice the minimum wage, or up to $46,000 annually, would be reimbursed at 90 percent. Above that, pay would be reimbursed at 50 percent, up to a maximum of $1,500 a week.The District program would reimburse minimum-wage workers at 100 percent. Wages up to twice the minimum wage, or up to $46,000 annually, would be reimbursed at 90 percent. Above that, pay would be reimbursed at 50 percent, up to a maximum of $1,500 a week.
Under Mendelson’s version, the city would also not attempt to have federal employees participate in the system. Under Mendelson’s version, the city would not attempt to have federal employees participate in the system.
Advocates had wanted to compel federal employes to participate, and to pay the 1 percent salary cost themselves. But Mendelson said it was unclear how the city would monitor federal employees’ leaves, and it would create two classes of employees. Advocates had wanted to compel federal employes to participate and to pay the 1 percent salary cost themselves. But Mendelson said it was unclear how the city would monitor federal employees’ leaves, and it would create two classes of employees.
Under his plan, aides said the benefit could be a unique attraction to private-sector jobs in the city, potentially helping the city to further diversify its workforce.Under his plan, aides said the benefit could be a unique attraction to private-sector jobs in the city, potentially helping the city to further diversify its workforce.
Mendelson would also restrict the chronic and mental illnesses that could be used as rationale for taking leave and to care for others, and employees would have to prove they are taking care of someone with whom they have a legal relationship. Mendelson would also restrict the chronic and mental illnesses that could be used as a rationale for taking leave and to care for others, and employees would have to prove they are taking care of someone with whom they have a legal relationship.
Critics said that could limit adult workers’ ability to take time off to care for ailing parents, and complicate leave for gay and lesbian workers. Critics said that could limit adult workers’ ability to take time off to care for ailing parents and complicate leave for gay and lesbian workers.
Business leaders remain opposed to the payroll tax and say they want to see at least some shared cost of the benefit between employees and employers. They also say the city has yet failed to explain how many critical jobs could be filled on short notice if every employee can potentially take extended family leave at once.Business leaders remain opposed to the payroll tax and say they want to see at least some shared cost of the benefit between employees and employers. They also say the city has yet failed to explain how many critical jobs could be filled on short notice if every employee can potentially take extended family leave at once.
Bowser this week renewed a call for a task force to study the issue, and for her office to be more involved in deciding the policy. It is not at all clear if the council will wait to do so. Bowser this week renewed a call for a task force to study the issue and for her office to be more involved in deciding the policy. It is not clear if the council will wait to do so.
If the plan passes the council, Bowser would be faced with a decision on whether to sign a leave bill with benefits that would run twice as long and reimburse at a higher rate than either New Jersey or California. Family leave programs in those states max out at six weeks of paid leave, and at about 60 percent of employees’ salaries. If the plan passes the council, Bowser would be faced with a decision on whether to sign a leave bill with benefits that would run twice as long and reimburse at a higher rate than either New Jersey or California. Family leave programs in those states max out at six weeks of paid leave and at about 60 percent of employees’ salaries.
[Related: Can D.C. really afford paid leave?]