Parental Leave: From Snapshots to PlansThe Snapshots – Public Sector: state governments California New Jersey Rhode Island Washington New York District of Columbia Effective time

C A I T L I N A Z H D E R I A N , E D . M . , S T A N F O R D U N I V E R S I T Y B A R B A R A R O B E R T S , P H . D . , M I C H I G A N S T A T E U N I V E R S I T Y

H U I H U A N G , M . A . , M I C H I G A N S T A T E U N I V E R S I T Y

Parental Leave: From Snapshots to Plans

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Today’s Discussion… The US and the World [global context] (15 min) •  How we compare •  How others pay for it The Discourse [national social context] (15 min) •  Academic •  Popular/Political The Snapshots [who’s doing what where?] (15 min) •  Public Sector •  Private Sector •  Post-secondary Sector

The Business Case [how do they do it?] (>10 min) •  Why it pays off

Next steps? [discussion period] (20 min)

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Definitions Paid Family Leave: A state-administered program or employer-provided benefit that fully or partially replaces the wages of workers who take leave to care for a seriously ill family member or new child.

Paid Medical Leave: A state-administered program or employer-provided benefit that fully or partially replaces the wages of workers on leave for medical reasons, including pregnancy. Paid medical leave may be provided through a state-administered system, called a State Disability Insurance (SDI) or Temporary Disability Insurance (TDI) program. Paid medical leave may also be available through privately purchased or employer-provided short-term disability insurance, or through employer-provided paid sick days or paid time off.

Family Medical Leave Act (FMLA): Provides up to 12 weeks of unpaid, job-protected leave to eligible workers.

F A M I L Y P A I D L E A V E

The US and the World

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The US and the World Snapshot of the US and the World

•  Global map of parental leave policy

•  Paid parental leave in OECD countries

•  How they pay for it (Cases: Denmark, Germany, Canada)

6 6


Paid parental leave: a hot topic

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Norway 26-51.9

Australia 14-25.9

Switzerland 14-25.9

Denmark >=52

Netherlands 14-25.9

Germany >=52

Ireland 26-51.9

United States 0

Canada 26-51.9

New Zealand 14-25.9

10 top developed countries

The US and the World – paid maternity leave

8 8

The US and the World – paid paternity leave

Australia >=14

Switzerland 0

Denmark >=14

Netherlands <=3

Germany >=14

Ireland 0

United States 0

Canada >=14

New Zealand >=14

Norway >=14


9 9

Australia both

Switzerland mom

Denmark both

Netherlands both

Germany both

Ireland mom

United States neither

Canada both

New Zealand both

Norway both


The US and the World – paid parental leave

10 10


0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0

100.0

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Paid maternity leave in OECD countries, 2015

weeks of paid maternity leave average payment rate

Data from @Organization for Economic Cooperation and Development

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0.0

10000.0

20000.0

30000.0

40000.0

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Nor

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Public expenditure on parental leaves per child born, 2011

US dollars

Data from @Organization for Economic Cooperation and Development

12 12

The US and the World – how they pay for it

Payroll taxes (most common):

Overall taxation rates + relative shares contributed by employers and

employees

a) Funds solely to family leave benefits

b) health and sickness funds

c) unemployment compensation funds

d) social insurance funds

ü  costs are distributed throughout society

http://cepr.net/documents/publications/parental_2008_09.pdf

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Denmark

All family leave is accompanied by a financial benefit paid by the parents’ municipal

government, ranging from 30 percent to 90 percent of their usual salary.

If a worker’s collective agreement stipulates that the employer will pay full wages during maternity or paternity leave, the government does not provide the employee with the usual benefit but gives it to the employer as partial reimbursement.

18 wks: maternity leave 2 wks 32 wks: to be divided by parents

Paternity leave

52 wks

Birth date

4 wks

http://www.lisdatacenter.org/wp-content/uploads/parent-leave-details1.pdf

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The US and the World – how they pay for it Germany

14 weeks of maternity leave and three years of shared parental leave

Mutterschaftsgeld (maternity)

•  Insurance enrollment is available to women who are employed, receiving unemployment benefits, or in an educational program

•  6 weeks before the birth, and 8 weeks after at full pay, up to €13 ($13.78) per day

•  If someone’s usual wage is above €13

($13.78) per day, the remainder is paid by her employer

Elternzeit (parental)

•  Up to three years parental leave, combined by paid leave (Elterngeld) and unpaid leave

•  Elterngeld: Funded by the federal tax system

•  Families have 14 months of 67% pay to share, with 2 months reserved for the father.

•  Parents may also claim the childrearing benefit at half the usual rate for twice the usual length

http://www.lisdatacenter.org/wp-content/uploads/parent-leave-details1.pdf

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Canada - employment insurance (EI)

•  EI maternity benefits: offered to

biological mothers, including surrogate

mothers, who cannot work because they

are pregnant or have recently given birth

•  EI parental benefits: parents who are

caring for a newborn or newly adopted

child or children

E I employed in

EI

meet the specific criteria

normal weekly earnings are reduced by

>40%

accumulated at least 600 hours of IE or have earned enough money as a self-employed

fisher

55% pay ~ $543/week Maternity -15 wks; parental - 35 wks

https://www.canada.ca/en/services/benefits/ei/ei-maternity-parental.html


The Discourse

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The Discourse – academic research on paid leave

Three major themes

Policy (economic perspective)

•  Increased retention & job satisfaction

•  Improved labor force attachment •  Reduction in absenteeism •  Access increases benefit utilization & allows flexibility to

handle life events •  Impact on “lost wages” ($3 trillion as a result of unpaid

leave taken by caregivers) 6

Health Implications (new parents & caregivers)

•  Leave type (e.g. new baby vs. sick parent) •  Positive impact on mental & physical health of caregivers •  Positive impact on health outcomes of young children,

rates of breastfeeding, and fathers’ involvement 7 •  Increased compliance of preventive care

Access •  Paid or job protected •  Most common reason •  Increase in leave taken to care of aging parent

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The Discourse – popular & political

•  Details access concerns, economic and health impacts

•  Introduction of gender-neutral policies

(modern companies support modern families)

•  “The Zuckerberg Effect”- generational shift

with fathers increased involvement •  Highlighted post-leave support •  Growing demand for eldercare •  Expanded state and city policies •  Inadequate federal policy proposals

Best Practices: Family Friendly Employers

1. Generous paid family care leave

2. Gender neutral policies for newborn leave

3. Promote flexible schedules

4. “Use it or lost it” paternity leave mandate

5. On-site quality and affordable child care

6. Babies-at-work policy (infants to 6 months)

7. Designated nursing spaces

8. Back up care program

9. Job protected career break for care


The Snapshot

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The Snapshots

•  Public Sector

> State Governments

> Working Mother’s top 10 nonprofit organizations

•  Private Sector

> Working Mother’s “100 Best Companies”

•  Post-secondary Sector

> Data summary of AAU universities

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The Snapshots – Public Sector: state governments

California New Jersey Rhode Island Washington New York District of Columbia

Effective time 2004 (expanded 2016, effective

2018) 2009 January 2014 not yet determined January 2018 July 2020

Maximum length of paid parental leave 6 weeks 6 weeks 4 weeks 5 weeks

8 weeks in 2018, 10 weeks in 2019, 12

weeks in 2021 8 weeks

Weekly pay rate in 2017, 55% (up to $1173); beginning in

2018, 60% - 70% 66% (up to $633)

4.62 % of wages paid during the

highest quarter of worker’s base period,

up to $817

$250

up to 50% of state average wage in 2018, 55% in 2019, 60% in 2020, 67% in 2021

90% or [90%*min wage*40

+50%*(wage-150%*min wage*40)], ( up to

$1000)

Method to fund insurance system insurance system insurance system insurance system insurance system insurance system

Paid parental leave policies implemented by states

@ 2017 National Partnership for Women & Families 8

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The Snapshots – Public Sector: state governments

California New Jersey Rhode Island Washington New York District of Columbia

Effective time 2004 (expanded 2016, effective 2018) 2009 January 2014 not yet determined January 2018 July 2020

Reasons for paid leave

1. Bonding with new child 2. Care for family member

with serious health condition

3. Care for own disability , includes pregnancy

1. Care for new child 2. Care for family

member with serious health condition 3. Care for own

disability, includes pregnancy

1. Bonding with new child

2. Care for family member with serious

health condition 3. Care for own

disability

Birth or adoption of new child

1. Bonding with new child 2. Care for family member

with serious health condition

3. Care for own disability 4. Qualifying exigency arising out of spouse,

domestic partner, child or parent

1. Bonding with new child

2. Care for family member with serious

health condition 3. Care for own serious

health condition

Definition of family member

Child, parent, spouse, domestic partner,

grandparent, grandchild, sibling and parent-in-law

Child, parent, spouse, domestic partner, civil

union partner

Child, parent, grandparent, spouse,

domestic partner

Not applicable; leave is for parents only

Child, parent, grandparent, grandchild, spouse,

domestic partner

Child, parent, spouse, domestic partner,

grandparent, sibling

Maximum length of paid parental leave 6 weeks 6 weeks 4 weeks 5 weeks 8 weeks in 2018, 10 weeks

in 2019, 12 weeks in 2021 8 weeks

Weekly pay ratein 2017, 55% (up to

$1173); beginning in 2018, 60% - 70%

66% (up to $633)

4.62 % of wages paid during the highest

quarter of worker’s base period, up to $817

$250

up to 50% of state average wage in 2018, 55% in

2019, 60% in 2020, 67% in 2021

90% or [90%*min wage*40

+50%*(wage-150%*min wage*40)], ( up to

$1000)

Method to fund insurance system entirely by employee by the employee only Not yet determined by the employee only by employer only

@ 2017 National Partnership for Women & Families

Paid parental leave policies implemented by states

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THEN: In the late 1980s, only 5 of 30 Best Companies offer fully paid

maternity leave, ranging from 1 week to 8 weeks. None report offering paid

leave for new dads or adoptive parents.

NOW: All Best Companies offer fully paid maternity leave to full-time

employees, while a majority offer paid paternity and paid adoption leave.

“

”-- Working mother’s 100 best companies 2015 9

The Snapshots – Private Sector

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The Snapshots – Public Sector : non profits

© 2017 Working Mother. A Bonnier Corporation Company 10

Top 10 Nonprofit Companies for Executive Women

1, 1, 1

Weeks of fully paid maternity leave

Weeks of fully paid paternity leave

Weeks of fully paid leave for adoptive parents

6, 4, 4 1

6, 4, 4 6 7, 4, 4 3, 3, 3

1, 1, 1

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Top 100 companies for executive moms

© 2017 Working Mother. A Bonnier Corporation Company 11

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Association of American Universities (AAU)

Three types of AAU universities:

Offer paid parental leave and pay for it

Offer paid parental leave supported and

paid by states

Do not offer paid parental leave

The Snapshots – Higher Education

Data collected from human resources or WorkLife websites of AAU universities.

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Offer to faculty only,

9

Offer to staff only, 4

Offer to both, 12

Is paid parental leave offered to both faculty and staff?


Association of American Universities (AAU)

Classified by demographic groups:

Offer to faculty and staff

Offer to faculty only

Offer to staff only In addition to paid parental leave, almost all universities offer paid teaching relief policies to faculty


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3.63 2.37 3.08 2.45 1.49 1.22 1.39 1.18 0

1

2

3

4

moms (birth) dads (birth) primary caregiver (adoption)

secondary caregiver (adoption)

Average weeks of paid parental leave offered by AAU universities without state policies

average weeks for faculty average weeks for staff

AAU universities that offer paid parental leave

Carnegie Mellon University Michigan State University

University of Maryland, College Park Tulane University

Case Western Reserve University University of Minnesota

Washington University in St. Louis Brown University

Indiana University Bloomington Northwestern University

Purdue University The Pennsylvania State University

The University of Arizona Cornell University

University of Missouri Harvard University

Duke University University of Illinois at Urbana-Champaign

Yale University Emory University

New York University University of Virginia

The Ohio State University University of Pennsylvania

Vanderbilt University Massachusetts Institute of Technology




The Business Case

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The Business Case – Why it pays off

Improves labor force attachment

•  Improves employee motivation- positive effect on long-term productivity & engagement •  Increases worker retention & reduces turnover •  Women who reported taking paid leave after the birth of a child were more likely to be

working 9 to 12 months later compared to women who did not take leave 12 •  First-time mothers with access to paid maternity leave are more likely to return to work

(mothers are the fastest-growing segment of U.S. labor force with 70% working outside the home) 13

•  Paid family and medical leave policies increase the use of leave for some workers 14

Improves business profitability

•  Reduced significant excess costs associated with replacing employees •  After CA & NJ enacted PFL benefits, 91% of businesses claimed positive effect on

profitability or no effect at all 15

•  Paid leave insurance programs funded though payroll taxes offers greater flexibility & no initial investment

Positive economic impact •  Increased labor force resulting in higher levels of output & gender equality in labor force

participation •  Reduced spending on public assistance •  Consider the value of unpaid labor

Improved health of families

•  Decrease of infant and young children morbidity and mortality •  Reduction of medical costs & health insurance claims •  Increases well-baby care, vaccination rates, and breastfeeding duration •  Greater paternal engagement in caregiving •  Contributes to the healthy development of infants and toddlers and improves the

outcomes for the entire family, including parents and caregivers

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The Business Case – Small business employers •  Support establishing a national paid family and

medical leave program •  70% believe it’s important to establish a

federal program to guarantee access to paid family and medical leave 16

•  Majority support the FAMILY Act 17

•  Legislation that would establish a national paid family and medical leave insurance program to ensure workers up to 12 weeks of partial income

•  Support state-administered paid family and

medical leave insurance programs •  61% support programs funded by employer/

employee contributions, with each contributing approx. two-tenths of 1% of an employee’s wages 18

•  7 in 10 small businesses have some type of family leave policy (formal or informal) in place 19

Majority of small businesses offer parental leave with full or partial pay

Small Business Majority and Center for American Progress

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The Business Case – The reality moving forward

•  Benefits of paid family leave to individuals, to business, and to society are well documented •  Most workers have or will have caregiver responsibilities at some point in their career life

cycle that will require them to take leave •  Development of a coherent approach to data collection & research about paid family leave

is much needed •  Assessment of family leave coverage & improved federal data collection would make it

easier to quantify gaps and access the costs and benefits of paid and unpaid leave •  Further analysis will help design effective policies at state and federal levels

•  Comprehensive legislation is needed to build a more productive workforce and stronger economy

P A I D F A M I L Y L E A V E

Next Steps

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Resources 1. 2016 WORLD Policy Analysis Center

2. 2016 WORLD Policy Analysis Center

3. Organization for Economic Cooperation and Development

4. 2017 National Partnership for Women & Families

5. 2017 Working Mother. A Bonnier Corporation Company

6. 2016 Family Caregiver Alliance

7. McBrayer, D. R.. “Paid Family and Medical Leave: Research and

Lessons for the District of Columbia.”

8. 2017 National Partnership for Women & Families




12. Shepard-Banigan, M., and JF Bell. “Paid Leave Benefits among

a National Sample of Working Mothers with Infants in the United

States.”

13. Galinsky, E., and Weisberg, A. ”Family Matters: The Business

Case For Investing in the Transition to Parenthood.”

14. Gomby, Deanna, and Dow-Jane Pei. “Newborn Family Leave:

Effects on Children, Parents, and Business.”

15. McBrayer, D. R.. “Paid Family and Medical Leave: Research and

Lessons for the District of Columbia.”

16. Gomby, Deanna, and Dow-Jane Pei. “Newborn Family Leave:

Effects on Children, Parents, and Business.”

17. Small Business Majority and Center for American Progress.

“Small Businesses Support Paid Family Leave Programs.”





Documents

Parental Leave: From Snapshots to PlansThe Snapshots – Public Sector: state governments California New Jersey Rhode Island Washington New York District of Columbia Effective time