Gotham Gazette http://www.gothamgazette.com/component/tags/tag/1732 Sat, 16 Dec 2017 05:05:51 +0000 Joomla! - Open Source Content Management en-gb webmaster@gothamgazette.com (Webmaster) Everyone's Talking About Paid Family Leave, Only Compromise Will Yield a Deal http://www.gothamgazette.com/?id=6150:everyones-talking-about-paid-family-leave-only-compromise-will-yield-a-deal http://www.gothamgazette.com/?id=6150:everyones-talking-about-paid-family-leave-only-compromise-will-yield-a-deal cuomo biden paid family leave

Cuomo's paid family leave rally (photo via The Governor's Office)


Last week, the New York State Assembly passed a one-house bill creating a program that would allow workers to take time off to care for a new child or sick loved one while receiving a portion of their usual pay. It is the fifth year in a row the Assembly has done so. "It's appropriate we're here on Groundhog Day, since we've been coming back year after year for paid family leave," said Donna Dolan, head of the New York State Paid Family Leave Coalition, at a press conference announcing the vote.

Just a few days earlier Gov. Andrew Cuomo rallied with Vice President Joe Biden in Manhattan to push his newly-unveiled paid family leave bill. Both detailed their experiences of being torn between work and being at the side of a dying loved one.

"My friends, paid family leave has been an important issue for a long time, but it is an issue whose time has come because things happen," Cuomo told the crowd. "When the planets line up and the political will and the body politic develops, and the body politic says enough is enough – now is the time to pass paid family leave."

It was only last session that Cuomo insisted the legislature had no "appetite" for paid family leave. But now with major attention from media, elected officials, and advocates across the nation focused on whether New York will become the fourth state to pass a paid family leave bill, Cuomo is whipping up support for his plan. As are Assembly Democrats, whose plan is different, while all look to get the blessing of Senate Republicans, who control that chamber.

While Cuomo seeks to thread some middle ground with his plan, Assembly Democrats insist theirs, which includes higher benefits, is the way to go, and Senate Republicans indicate there may be room for compromise while saying they're wary of any additional burdens on businesses.

The Cuomo administration is proposing a plan that would pay benefits through contributions from employee paychecks and reimburse workers starting at the rate of 35 percent of earnings. The Assembly plan would expand the scope of the state Temporary Disability Insurance program to cover paid family leave and would also take contributions from employee paychecks, but would reimburse at a rate of two-thirds of a worker's pay for individuals on leave.

One central point of conflict is whether to connect the paid family leave program to the TDI--a move Senate Republicans appear to be sensitive to because of concerns that increasing the benefit for workers who take off time for their own disabilities would be a cost born by employers as well as workers. TDI is paid for by employers.

The state has kept the TDI reimbursement rate steady at $170 a week for decades. Legislators expect that increasing the rate will take immense political capital as it will almost certainly require contributions from employers.

However, there are also signs there may be room for compromise as the Cuomo administration has said it will introduce amendments to its leave proposal. Advocates expect the administration to increase the amount employees are reimbursed to bring it into line with the Assembly proposal.

"I think it is a very positive thing that everyone is talking about paid family leave," said Sen. Jeff Klein, head of the Independent Democratic Conference, who joined Cuomo and Biden for their rally last month, delivering opening remarks. "Serious discussions haven't started yet, but I'm hopeful."

Soon after speaking with Gotham Gazette, Klein introduced a new version of his paid family leave bill to the state Senate. Klein and the IDC jolted discussion of family leave last year when they successfully advocated for Senate Republicans, whom they have a coalition with and control the chamber, to include a paid family leave plan in their budget.

Before introducing his new compromise bill, Klein told Gotham Gazette that he believes negotiations should focus on Cuomo's proposal rather than the Assembly's because it is "more palatable" to Senate Republicans.

The dynamics around paid family leave have changed since last legislative session. Cuomo appears to have stepped into the role Klein's IDC was playing as they backed paid family leave supported in part by state funds and by deductions from employee paychecks. The Assembly Democrats' plan would use deductions from employee paychecks to expand the TDI, which currently provides partial pay for workers who are disabled and have to take off work.

Last year Cuomo rejected the Senate's family leave proposal put forward by the Independent Democratic Conference. "We need a paid family leave policy that is sustainable and would provide real protections to employees. What we should not accept is the Senate proposal, which is a half-loaf that does not provide sustainable funding or a workable framework for employees and employers," Cuomo spokesperson Melissa DeRosa said in a statement in March in response to the IDC's plan.

Klein's new plan would provide 12 weeks of paid leave starting at two-thirds of a worker's average weekly pay, or 35 percent of the state's average weekly wage by 2017. It would eventually offer 80 percent of a worker's salary, or 50 percent of the statewide average weekly by April 1, 2021. It would be paid for through a 27-cent-a-week contribution from employee paychecks and be distributed through a newly created paid leave system. It would not expand the TDI, but Klein has advocated doing so separately, to raise the TDI benefit after so many years of it staying flat.

Cuomo's plan, presented in conjunction with his State of the State and budget address in January, would create a paid family leave system that would offer up to 12 weeks leave paid for by a weekly, 60 cent payroll deduction. Workers would be able to take leave while earning 35 percent of their pay in 2018, rising to 66 percent by 2021. Leave pay would be capped at a weekly average of statewide pay - the 2014 average according to the state Department of Labor was $1,266.44.

The Assembly plan would expand TDI and provide workers with 12 weeks of paid leave at two thirds of their average weekly wage. It would be paid for with a weekly deduction from an employee's paycheck that would start at 45 cents. The plan would become effective July of 2017.

Advocates have leaned towards the Assembly plan as it provides workers with what they consider the minimum amount of pay to make taking leave feasible, as well as expanding the TDI, and requiring a smaller worker contribution.

Blue Carreker, head of Citizen Action of NY's paid family leave campaign said that her organization thinks any paid leave bill has to cover all workers and all businesses, provide 12 weeks leave, and increase the rates paid by TDI to bring it into parity with what will be paid by the family leave program.

Republican Senate Majority Leader John Flanagan has indicated he is open to negotiations. Following a speech he gave at an Association for a Better New York breakfast last month, Flanagan indicated he was moved by Cuomo's State of the State speech in which the governor described regretting not being at his father's side during his final days.

Flanagan tempered that openness with concerns he has about how a paid leave policy might impact small business. "If you're a business with four employees and someone is going to be gone for three or four months, that's a legitimate consideration," said Flanagan. "So a threshold on what's the size of the business, who pays for it, how are kids paid for, those are all absolutely important components and worthy of discussion, and I think those discussions are already taking place. Where it adds up, I don't have a crystal ball on that, but I think there's a lot more discussion about paid family leave now than there was even six months ago."

Republican Assembly Minority Leader Brian Kolb told Gotham Gazette, "A lot of business owners are saying 'Are you kidding me? Another thing that is telling me what to do and costing me time and money.'" He added that "there really aren't that many details except in that bill" from the Assembly Democrats, which "almost certainly won't become law."

A number of business groups stand against paid family leave. "Small employers are currently able to accommodate employees and provide flexibility in terms of scheduling," said Michael Durant, New York State director of The National Federation of Independent Businesses. "Those that can afford to offer paid time off already do and to require those that cannot afford the added expense will be dangerous to the small business sector. This is simply a solution in search of a problem and would be yet another government mandate on small business."

A recent DEMOS policy brief showed that 9 out of 10, or 6.4 million, working people in New York don't have paid family leave.

Increasing the TDI is an extremely sensitive issue for businesses and many legislators believe that including it with paid family leave will continue to be a poison pill. Most legislators are convinced by Cuomo's efforts on paid family leave and they see the inclusion of it in his budget and the way he rolled out the issue in the State of the State as a sign of steadfast commitment. They expect he will be willing to increase how much the leave program pays out and perhaps speed the implementation timeline, but not touch the TDI given his relationship with the business community. Increasing the TDI would be an immense victory for labor interests.

Carreker, who was waiting for a meeting with Cuomo administration representatives about paid leave when she spoke with Gotham Gazette, said she is confident a compromise can be reached and stressed she feels that advocates need to focus on educating legislators and small businesses on the impact paid family leave would actually have.

"It's about getting over that initial hurdle of the fear of change, of something different," said Carreker. "The more people that hear the details, the more they'll see it makes sense. This isn't a burden, it's an insurance program that covers the salaries so businesses can figure out coverage while an employee is away so that they don't have to lose good employees."

Klein agrees: "This is not something that puts a burden on business, but something that lends stability to the workforce. I think we're getting it done this year."

Paid Family Leave Proposals Gov. Cuomo Assembly Democrats Senate Independent Democratic Conference
Funding Method

60 cent weekly deduction from employees' paychecks

State TDI program and 45 cent weekly deduction from employees' paychecks

27 cent weekly deduction from employees’ paychecks

Time Off & Payout

12 weeks of paid leave starting at 35% of worker’s pay starting in 2018, rising to 66% by 2021.

12 weeks of paid leave starting at two-thirds of a worker’s average weekly wage, effective July 2017

12 weeks of paid leave starting at two-thirds of a worker’s average weekly pay, or 35% of the state’s average weekly wage by 2017. Will eventually offer 80% of a worker’s salary, or 50% of the statewide average weekly by April 1, 2021

TDI Expansion?

Does not expand TDI

Plan would expand the scope of the state Temporary Disability Insurance program to cover paid family leave

Does not expand TDI

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by David King, Albany editor, Gotham Gazette
     

Read more by this writer.

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Everyone's Talking About Paid Family Leave, Only Compromise Will Yield a Deal Fri, 05 Feb 2016 21:47:14 +0000
Newly Hot, Paid Family Leave Passes Assembly Again http://www.gothamgazette.com/?id=5637:newly-hot-paid-family-leave-passes-assembly-again http://www.gothamgazette.com/?id=5637:newly-hot-paid-family-leave-passes-assembly-again cuomo opportunity agenda

Gov. Cuomo discussing his agenda (photo: @NYGovCuomo)


In further indication of the growing hunger in New York and across the nation for paid family leave, the State Assembly again passed the Paid Family Leave Act on Tuesday in Albany.

Meanwhile, Senate Republicans introduced their one-house budget resolution last week and also put the spotlight on the issue that Governor Andrew Cuomo is quickly having to figure out a plan on - though the Senate's version is different from the Assembly's in terms of funding mechanisms. The governor recently said that the "appetite" did not exist in the Legislature for paid family leave, but in the face of a paid family leave proposal making its way into each house's budget, his office has since said Cuomo supports the policy and his administration is studying the issue.

Upon passing the legislation, which the Democratically-controlled Assembly has passed several times, Speaker Carl Heastie said, "New Yorkers should not have to choose between keeping their jobs and taking care of a sick family member or spending time with a new one."

As budget negotiations heat up before the April 1 deadline, paid family leave has taken many by surprise as a hot-button issue for these budget and legislative sessions. It now finds itself alongside an increase in the minimum wage, the DREAM Act, education reforms and funding, ethics reforms, and other keys to intense spending and policy talks.

The U.S. falls behind other nations in its lack of a federal paid family leave law. The federal Family and Medical Leave Act (FMLA) provides for 12-weeks of job-protected leave for family and medical emergencies with continued health insurance coverage. It covers childbirth (maternity and paternity leave), caring for an adopted or foster child, caring for loved ones and personal illness. The catch: it does not mandate any pay.

New York has its own infrastructure for off-the-job disability in the form of Temporary Disability Insurance (TDI). All private employers are required to provide TDI. Through TDI, a deduction of 60 cents a week from an employee's paycheck covers between five and seven weeks for recovery from childbirth, and injuries and sickness. Only four other states provide TDI benefits -- California, Rhode Island, New Jersey and Hawaii.

But in recent years, besides Hawaii, the other three have modernized TDI to include a paid family leave plan. Hawaii is considering doing the same. "New York is really the next logical state to do it," said Nancy Rankin from the Community Service Society. "It would be an easy and affordable way to make it possible."

When the New York State Assembly passed the Paid Family Leave Act last year, the bill died in the Republican-controlled Senate. While Cuomo may be scrambling a bit to imagine his own policy specifics - he, like many lawmakers, is likely wary of the effects such a bill could have on businesses - the Senate included its family leave bill at the behest of the Independent Democratic Conference, which it caucuses with.

In an emailed statement, Heastie, who represents part of the Bronx, said, "No one should have to risk financial hardship or fear losing their job because they need to care for a sick family member. Assembly Democrats do not believe in penalizing the hardworking men and women of this state. We believe in giving them the support they need because when we invest in the health and safety of our families we invest in the future of New York. It is time to pass Paid Family Leave here in New York."

The Assembly proposal, according to a Tuesday press release, calls for expansion of TDI to ensure paid family leave, in part through employee contributions: "Under this measure, employers would be required to offer a paid family leave benefit and could have workers contribute up to 45 cents per week to the policy. This employee contribution would ensure up to 12 weeks of paid family leave, cover two-thirds of the worker's salary and guarantee job security during the absence."

The Senate's proposal came through the IDC, led by Senator Jeff Klein, also of the Bronx. The fundamental difference between the two proposals is that while the Assembly is pushing for expansion of the TDI, Klein's proposal calls for state funding of the benefit. It is projected to cost $125 million in the first year, with funding in subsequent years being bolstered by employee contributions. Senate Majority Leader Dean Skelos' office refused comment citing ongoing budget negotiations. The governor has already rejected the plan for overly relying on state funds.

"It's hard to sustain a private sector benefit if it needs to be renewed each year by the state Legislature," said Donna Dolan, executive director of the New York Paid Family Leave Coalition. "You're calling for funding a private sector benefit from public funding."

The Coalition last week responded to the Governor's 'no appetite' comment with a letter signed by 56 women lawmakers and leaders. The letter stated, in part, "Paid family leave would ensure that no New Yorker has to choose between the health and economic stability of her family. It would mean that the major life moments we all share – the arrival of a new child, or a close relative needing care – do not have to mean debt or bankruptcy."

The expansion of New York's TDI cash benefit has been long in the offing, family leave extension or not. The current benefit level has been frozen since 1989 at $170 a week despite a mandate for it to be at least 50 percent of the average statewide weekly wage. (In 2013, the average weekly wage in New York was $1,200, which would mean a $600 benefit if there was no cap). In comparison, the benefits are $1,104 per week in California, $772 in Rhode Island and $604 in neighboring New Jersey. "To make it meaningful, we need to raise TDI," said CSS's Rankin.

It is unclear where any middle ground for the Senate and Assembly proposals might be. It is hard for anyone to argue with the underlying premise of paid family leave, but the devil is in the funding details - and concerns over impacts on businesses.

"It's good for families and it has been good for business in the states that passed it," said Dolan. She suggests bringing business representatives from New Jersey to give the Senate reports on paid family leave.

But business leaders don't necessarily agree. President and CEO of Partnership for New York City Kathryn Wylde said, "Every time there's a new requirement that takes people out of the workplace, that removes people off a job, that requires even a temporary replacement, you can't say there's no impact." She added, "It's important that the state Legislature and the City Council recognize that there's a cumulative impact of their actions on employers and on New York's attractiveness as a place to build a business."

As New York lawmakers struggle to find a solution to this long-standing demand, the movement for paid family leave is gaining momentum. In its annual survey, the Unheard Third, CSS found 84 percent approval for paid family leave last year, up from 76 percent in 2005. Even President Obama mentioned it in his State of the Union address this year and is attempting to pass the Healthy Families Act which would create a $2 billion fund to help states with paid family leave.

"It goes beyond policy to a basic value," said Rankin. "Why wouldn't we do this and why wouldn't we do it now?"

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by Samar Khurshid, Gotham Gazette
@samarkhurshid

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Newly Hot, Paid Family Leave Passes Assembly Again Tue, 17 Mar 2015 21:00:31 +0000