Family Leave legislation pending in Congress: new bill would expand the Family Medical Leave Act by mandating paid leave for employees

Modern Casting, Sept, 2007

Pending legislation could expand the Family Medical Leave Act (FMLA) to provide paid leave to employees. Sens. Christopher Dodd (D-Conn.) and Ted Stevens (R-Ark.) introduced legislation in June that would provide up to eight weeks of paid leave to workers needing time off due to the birth or adoption of a child, or to care for a child, spouse or parent with a serious illness or their own serious illness.

Metalcasting industry lobbyists believe that metalcasting facility owners responsibly address employee needs and benefits without interference from the federal government in workplace operations. In addition, they argue that this bill will increase administrative and personnel costs, which in turn would necessitate increased product pricing and make U.S. metalcasters less competitive in the global marketplace.

Under The Family Leave Insurance Act of 2007 (S. 1681), employers would pay leave benefits through their regular payroll and be reimbursed by the Family Leave Insurance Fund created by this legislation. Employees and employers would both be required to pay a premium into the fund, roughly 0.2% of the employee's earnings. The benefits would be tiered based on the employee's earned wages. The legislation would require employees to pay insurance premiums for 12 months and have worked for the same employer for 12 months to receive benefits.

Participation in this program would be mandatory for businesses with more than 50 employees. Those businesses with fewer than 50 employees may choose to opt into the program at a 50% discount and pay 0.1% premiums.

Currently, the FMLA mandates that businesses with 50 or more employees grant their workers up to 12 weeks of unpaid leave in the case of a serious health condition for either the employee or immediate family, as well as for the birth or adoption of a child. The act, which was intended to protect new parents and employees facing serious illnesses, has been under scrutiny since its passage in 1993. Employers claim the FMLA is too confusing and opens the door for widespread workforce abuse.

The bill has been referred to the Senate Finance Committee for consideration, but no hearings or votes have been scheduled. The bill has two additional co-sponsors, Sens. Edward Kennedy (D-Mass.) and Patty Murray (D-Wash.).

For more information, contact Alicia Oman, AFS Washington Office, at aoman@afsinc.org or 202/842-4864.