Will FMLA Leave Soon be a Benefit with PAID Time Off?

This year marks the 30th anniversary of the Family Medical Leave Act, federal legislation providing for up to 12 weeks of unpaid leave for an employee’s own, or their family members’, health conditions.  This law was important as it required employers to not only provide time off, but also to hold the employee’s job for the duration of the leave.

The USA is one of only a few wealthy countries that doesn’t guarantee paid family and medical leave at the national level.  Only about a third of all employers offer paid parental leave or leave to care for a family member.

In March 2023, President Biden’s proposed 2024 budget was released, and it contained $325 Billion ear-marked to provide for a comprehensive, paid family and medical leave program.  This new program would provide the same 12 weeks off – but this time off would now be paid. 

The fact that the 12-weeks of leave currently provided by the FMLA is unpaid has proven to be a significant impediment to middle and lower income families who feel their budgets cannot be sustained by going 3 months without a paycheck.

Although it is not expected that the paid leave program in its initial proposed form will be approved by current Republican lawmakers, it is important to note that many employers have recognized that family and medical leave is a huge driver for employee recruitment and retention. A December 2022 survey published by Unum showed that paid family leave was among the top 3 noninsurance benefits that workers say they want.  SHRM, the Society for Human Resources Management, has gone on record to say that, “Far too many workers do not have access to paid leave in times of illness or crisis, leaving families struggling to earn a living and care for loved ones.”  

We see this trend for paid family and medical leave as gaining momentum over the next year, with employers and industry associations getting on board to support passage of ways for employers to fund paid leave benefits.  This could involve the “pooling” of resources and flexibility in program design.