Business-Backed Bill Proposes National Paid Time Off Policy for US

Business-Backed Bill Proposes National Paid Time Off Policy for US

Current federal law in the US does not require organizations to grant employees any paid time off, be that vacation, family leave, or sick days. Most companies provide some kind of paid leave as part of their rewards policies in order to be competitive in the talent market, but advocates for federal mandate say the workers who need paid leave the most (low-income, single working mothers, for example) are least likely to get it unless their employers face some regulatory pressure. Demand for this protection has led to the emergence of paid family and medical leave mandates at the state and local level.

Representative Mimi Walters, a Republican from California, is backing a bill that would encourage companies to provide two to three weeks of paid time off by exempting them from stricter state and local mandates as long as they comply with the federal policy. As Bloomberg’s Jeff Green and Rebecca Greenfield explain, the bill envisions a national paid time off policy combining vacation, sick days, and other forms of leave into one category, and legislating a federal standard for businesses to meet; liability under tougher state and local rules would apply only to businesses that failed to meet that standard.

Walters’s bill, which is supported by SHRM and other major business groups, is similar in this regard to the proposal issued by the HR Policy Association earlier this year calling on the federal government to enact a national standard for paid parental leave—not to force compliance on their members, but again to protect them against the patchwork of local regulations that are popping up. States including Arizona, California, Connecticut, Massachusetts, Oregon, Vermont, and Washington, as well as major cities like New York and San Francisco, have instituted their own sick leave or parental leave requirements in recent years. Businesses are now beginning to see a less restrictive federal policy as a better solution than no policy at all.

Another reason businesses like the bill (whose chances of actually becoming law are currently uncertain) is that unlike most of these local mandates, the proposed federal policy would allow employers to deny requests for time off. “Opponents say that’s a cruiser-sized loophole,” Green and Greenfield write:

Weakening that protection is “dangerous and deceptive,” said Ellen Bravo, director of the Family Values @ Work consortium, a network of state coalitions advocating for paid sick days and family leave for all workers. “The employer might say, ‘It’s inconvenient, you can’t take it. I need you to reschedule that chemo or reschedule that kid’s doctor appointment.’” …

The bill is supported by the U.S. Chamber of Commerce, National Association of Manufacturers, and the Association of Women Business Owners and opposed by the National Partnership for Women & Families, Momsrising and the American Sustainable Business Council, among others. Both sides agree that national rules would finally encourage more businesses to offer the benefit to part-time workers.