Request a call Login

  • President Biden’s budget for the fiscal year 2024 proposes establishing a national paid family and medical leave program. This would give workers up to 12 weeks off to tend to a newborn, recover, or care for a family member. In addition, it would include three days of bereavement leave. Biden released a $6.8 trillion budget plan for 2024 which contains a $325 billion commitment to a comprehensive, permanent paid family and medical leave program.

    Beyond the 12 weeks of family and medical leave, the budget also seeks to ensure that families can afford to care for their children, with $600 billion allocated toward making childcare more affordable and accessible. The Department of Labor reported that families spend at least eight percent of their income on childcare costs.

    What This Means

    Currently, the U.S. is one of the few developed countries that doesn’t have a national paid family leave program. While the Family and Medical Leave Act (FMLA) provides eligible workers with up to 12 weeks of unpaid leave for specific reasons, many workers can’t afford to take unpaid time off. Only 21% of workers in the U.S. have access to paid family leave through their employers.

    Biden’s proposal would change that by creating a federal paid family leave program that would be available to all employees, regardless of the size of their employer or how long they’ve been with the company. The proposal also includes measures to ensure that small businesses aren’t burdened by the program, making it easier for workers to access the benefits.

    There are many benefits of a paid family leave program. For employees, it means they can take time off to care for a new child or a sick family member without worrying about losing their job or their income. This can be especially important for low-wage workers who may not have savings to fall back on. For business owners, it can help attract and retain talent by offering a valuable benefit many workers prioritize when searching for a job.

    While all these benefits sound great, it also leads to concerns, including the potential costs for employers and the government. Some have argued that the payroll taxes necessary to fund the program would be too burdensome, especially for small businesses.

    What To Do As A Business Owner

    Despite the concerns, the benefits of a paid family leave program are clear and are an issue that has broad support among U.S. employees. While we wait to see if the program passes, it’s essential as a business owner to take proactive measures to ensure your employees receive the benefits they want and need. A professional employer organization (PEO) such as Group Management Services (GMS) can provide invaluable support to employers and employees regarding family leave policies. One of the main benefits of working with GMS is that we offer a comprehensive benefits package that can include paid family leave. In addition, we help you develop and implement family leave policies that comply with state and federal regulations. This ensures your business complies with the law and avoids potential legal issues. Contact our HR experts to learn how we can help your business.

  • During a press conference on February 2nd, 2023, President Joe Biden announced he signed a memorandum laying out a national program of paid family and medical leave for employees. The conference also marked the 30th anniversary of the Family and Medical Leave Act (FMLA). The FMLA entitles eligible employees of covered employers to take unpaid, job-protected leave for specified family and medical reasons with continuation of group health insurance coverage under the same terms and conditions as if the employee had not taken leave. Eligible employees are entitled to the following:

    • 12 workweeks of leave within 12 months for:
      • The birth of a child and care for the newborn child within one year of birth
      • The placement with the employee of a child for adoption or foster care and to care for the newly placed child within one year of placement
      • To care for the employee’s spouse, child, or parent who has a serious health condition 
      • A serious health condition that makes the employee unable to perform the essential functions of his or her job
      • Any qualifying exigency arising out of the fact that the employee’s spouse, son, daughter, or parent is a covered military member on “covered active duty”
    • 26 workweeks of leave during a single 12-month period to care for a covered servicemember with a serious injury or illness if the eligible employee is the servicemember’s spouse, son, daughter, parent, or next of kin (military caregiver leave)

    Improvements That Will Be Made

    As millions of workers across the country still face impossible choices between keeping a paycheck and caring for their families or themselves, the Biden-Harris Administration has taken proactive steps to assist these workers. Alongside this announcement at the press conference, they will continue to take action on national paid family and medical leave, affordable childcare, and home and community-based care so that all Americans can care for and financially support their families.

    President Biden’s memorandum will support Federal employees’ access to leave. It specifically calls on the head of Federal agencies to better support the access to leave without pay for Federal employees. In addition, it will also build on additional Administration efforts, improving access to and awareness of family and medical leave, which include the following:

    • Ensuring military personnel have access to 12 weeks of paid parental leave
    • Support paid leave efforts in states
    • Assisting employees that are impacted by cancer to understand their rights under the FMLA

    Alongside these efforts, the actions will also build on actions taken to support the economic security for women and families, which include: 

    • Protecting the health and economic security of pregnant workers
    • Extending protections for nursing employees
    • Increasing investments in early childhood education and childcare
    • Supporting women’s rights to be safe in the workplace and free from sexual harassment and assault

    Additional Steps That Should Be Taken

    While there’s still much work to do to help employees during times of need, it’s essential as a business owner to take additional steps to ensure your employees get the help they need. While laws constantly change, perhaps you focus on enhancing your benefits program offerings. Do you currently offer benefits to your employees? Are there any other benefits you could offer your employees? Do you currently provide maternity leave? The main question you should ask yourself during these unprecedented times is, how can I stand out from my competition? In a tight labor market, you must find ways to stand out from the competition, and the number one way to do that is through your benefits program. Companies that offer great compensation and benefits to employees experience 56% lower attrition.

    So, where do you begin? Partner with a professional employer organization (PEO) like GMS to help you stand out from businesses similar to yours. While we offer HR, risk management, and payroll services, we also help you choose a competitive benefits program that your employees want and need. As HR professionals, we take on the administrative burdens that companies don’t have the time or expertise to manage effectively. Contact us today to get started.

  • On September 30th, 2022, California Governor Newsom signed Senate Bill (SB) 951, which will increase the wage replacement rate for lower wage earners under the state Paid Family Leave Program (PFL) and State Disability Insurance (SDI) programs. A similar bill was vetoed last year.

    PFL provides short-term wage replacement benefits to eligible California workers. You may be eligible for PFL if you cannot work, resulting in lost wages and time off work for family leave. California’s SDI program provides short-term disability insurance to individuals who are unable to work due to non-work-related illness or injury, pregnancy, or childbirth.

    What The New Bill Means

    Beginning in 2025, individuals who earn 70 percent or less than the state’s average wage are eligible for 90 percent of their regular wages under the PFL and SDI programs. Currently, workers who earn low wages may be eligible for 70 percent of their regular wages under the programs.

    Governor Newsom expressed, “My administration has been a strong advocate for expanding access to DI and PFL programs, and I am proud of the progress we have made in collaboration with the Legislature… SB 951 will create significant new costs not included in the 2021 Budget Act and would result in higher disability contributions paid by employees.”

    Additional Steps

    Whether your organization lacks an HR department or HR team or needs a resource to make more informed decisions about benefits management, GMS can help. Our benefits outsourcing services allow your business to offer competitive, cost-effective benefits while you focus on what you do best, running your business. In addition, while laws and regulations are constantly changing, our team of experts ensures you stay compliant. Should a new law be enforced in the state you run your business operations, we create a strategic plan on how you can begin implementing it within your workplace. Want to learn more about how GMS can help you and your business? Contact us today.