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Job-protected, paid family and medical leave bill advances

Would extend to nearly all MA employees

Jule Pattison-Gordon

When their child is injured or seriously ill, some workers cannot afford to take time off to provide care. But a bill advancing in the State House could help change that. The bill passed Monday in the state Joint Committee on Labor and Workforce Development with a 10-0 vote and moved to the House of Representatives.

If enacted, the bill would guarantee nearly all employees in the state have access to job-protected paid leave to care for others and themselves. The bill’s provisions extend to helping their spouse, a child under 21 years, parent or legal guardian, in cases of injury or severe illness; caring for a child following her or his birth, adoption, or placement through foster care; and recovering from a non-work related serious health condition. A statewide insurance program would be established to fund wages during the leave period.

If Massachusetts passes the bill, the state will become the fifth to ensure job-protected paid leave, joining California, Rhode Island, New Jersey and New York.

Expected benefits

Currently, those who are least likely to receive wage replacement leave are blacks, Latinos, women, low-wage and low-income workers and those who work at firms with fewer than 50 employees, according to a study recently released by UMass Boston. This inequity can exacerbate earning gaps. Not only do workers forced to take unpaid leave face financial hardships, but also, the study states, “workers without paid leave are more likely to leave the labor force than workers that receive pay [to take leave].”

Proponents say the proposed bill provides important quality of life protections for employees and benefits businesses by reducing employee turnover and allowing for a more focused, productive workforce.

“When employees can take time off when they or a close family member is sick, or after the birth of a child, they’re healthier and more productive when they come back to work,” said Beth Monaghan, board member of the Alliance for Business Leadership and co-founder of InkHouse, in a Raise Up Massachusetts press release. InkHouse has employees in Massachusetts and in California, which passed a similar law in 2002. “Because California has a statewide paid family and medical leave program, it’s cheaper and easier for us to give our employees there paid leave when they need it. By pooling costs and risk together, paid family and medical leave will allow all Massachusetts businesses, large and small, to offer this important benefit that helps our employees and our bottom line.”

What’s provided

Under the bill, each year employees could take up to 12 weeks off to care for family members and new children, and 26 weeks off for their own recovery from conditions sustained outside of work — for instance, injuries from a vehicular collision. There are certain stipulations and limits: The combined total of leave taken cannot exceed 26 weeks, and in some cases, there is a one-week waiting period before benefits can be received. To be eligible for coverage, individuals also would have to have been employed in the state for a certain amount of time.

During their leave, employees would continue to hold health insurance benefits and would receive between 50 to 90 percent of what they typically earn in a week, capped at $650/week. For weekly wages equaling up to 30 percent of the statewide average, workers would receive 90 percent. (In 2015, this amounted to $377, according to the UMass study.) Workers would receive 33 percent of any earnings greater than 30 percent of the average.

The bill departs from the 1993 federal Family and Medical Leave Act and 2015 Massachusetts Parental Leave Act in several ways. It requires that the leave be paid and protections be extended more widely — only federal and local government employees would not be covered under bill. The bill also increases the scope from covering children until age 18 to until age 21.

Employers would be prohibited from retaliating against employees who take this leave and required to reinstate them in the same jobs or ones with substantially similar working conditions, such as pay, benefits and status.

The attorney general office’s Fair Labor Division would be responsible for assuring the law is enforced.

Insurance program

Funding for wage replacement during leave would be handled through insurance programs. All non-government employers would make regular contributions into a to-be-established Family and Employment Security Trust Fund, run by the state treasurer. Should employees need wage replacement, it would be paid out of this fund. Employers would also be allowed to require employees contribute up to 50 percent of the premium cost. The UMass researchers estimate the average cost to cover one employee would be $159 per year, or about $3 per week.

Alternatively, employers could use private insurance plans, if the coverage represents similar or better quality.