The Family and Medical Leave Act’s 20th Anniversary: Key Messaging Points and Background FEBRUARY 5, 2013 Overall Messages: 1. Twenty years ago, President Clinton signed the Family and Medical Leave Act – the first and only national law that enables workers to care for themselves and their loved ones without jeopardizing their jobs or their families’ economic security. This is a historic and celebratory moment that reminds all of us what can be accomplished when lawmakers come together to address the needs of our nation and its working families. 2. The Family and Medical Leave Act has been a tremendous success, but the law was always meant to be the first step on a path toward a truly family friendly America where workers do not have to choose between their health or the health of their families and their jobs. In 20 years, we have failed to take the next step and the promise of a family friendly nation has yet to be fully realized as a result. 3. On this historic anniversary, 20 years after the passage of the Family and Medical Leave Act, members of Congress must remember the promise of the law and commit to moving our country forward to meet the needs of working families. Foremost should be the passage of a national paid family and medical leave insurance program – a policy that has been tested, researched and shown to benefit families, businesses and our economy. Background on the Family and Medical Leave Act: The Family and Medical Leave Act is the only national law designed to help America’s workers meet the dual demands of work and family – and it has been a tremendous success. Since 1993, the law has been used more than 100 million times by working women and men who needed to take time away from work to care for their ailing loved ones, new children or their own serious health conditions. The Family and Medical Leave Act allows eligible workers to take up to 12 weeks of job-protected, unpaid leave to bond with a new child (including adopted and foster children); to care for a seriously ill child, parent or spouse; or to address their own serious health conditions, including pregnancy. Since 2008, caregivers for wounded servicemembers have been able to take up to 26 weeks of leave per year and family members have been able to take up to 12 weeks of leave to address certain circumstances arising from a military service member’s deployment. 1875 Connecticut Avenue, NW | Suite 650 | Washington, DC 20009 202.986.2600 | www.NationalPartnership.org The Family and Medical Leave Act exemplifies the power of lawmakers coming together to address the needs of the American people. It had the support of Democrats, Republicans, a coalition of more than 200 women’s, children’s, seniors’, labor and faith organizations led by the National Partnership for Women & Families, and influential leaders across the country. Despite the incredible impact the Family and Medical Leave Act has had on America’s working families and workplace culture, the law has gaps that keep millions of workers from being able to use it. That is why it was always meant to be a first step. Only half of the United States’ workforce is covered by the Family and Medical Leave Act’s protections. It only applies to employers with 50 or more employees (excluding 40 percent of the workforce) and only covers those employees who have been at their current employer for at least one year and have worked a minimum of 1,250 hours (excluding 10 percent of the workforce). (Waldfogel, “Family and Medical Leave: Evidence from the 2000 Surveys,” Monthly Labor Review, 2001) Millions of workers, especially in tough times, simply cannot afford to take the unpaid leave the Family and Medical Leave Act provides. In the most recent Department of Labor study of the law, nearly eight in 10 eligible workers who had a qualifying event but didn’t take leave say they didn’t because it was a financial impossibility. (Cantor, et al., Balancing the Needs of Families and Employers: Family and Medical Leave Surveys: 2000 Update, 2001) The definition of “family” under the Family and Medical Leave Act is too narrow and does not reflect the realities of America’s families today. Leave under the law is not available to caregivers of parents-in-law, grandparents, grandchildren, siblings, domestic partners or same-sex spouses. Fortunately, some states have expanded the Family and Medical Leave Act to address its gaps. Others have taken even greater steps toward fulfilling its promise. California and New Jersey are leading the nation in providing working families with access to paid time off of work to care for a new child or a seriously ill loved one. Both of these states created family leave insurance programs that complement their longstanding temporary disability insurance programs (California in 2002 and New Jersey in 2008). Connecticut, the District of Columbia, San Francisco and Seattle have established standards to enable workers to earn paid sick days – a critical step toward protecting the economic security of working families when short-term health needs arise. A patchwork of state policies is not the solution to the challenges working families face in managing the dual demands of work and family. Coalitions at the national level and in more than 20 states and cities across the country are pressing for advances to promote the economic security of working families through updated workplace policies like paid family and medical leave and paid sick days. 2 As the organization that drafted the Family and Medical Leave Act and led the coalition that made its passage possible, the National Partnership for Women & Families continues to lead efforts to fulfill its promise of a nation where workers no longer have to choose between their jobs and their families. What It Means to Take the Next Step – And Why It’s Important: It has been 20 years. It is time for Congress to take the next step toward a family friendly America by updating the Family and Medical Leave Act to let more workers take leave for more reasons and by passing the national paid family and medical leave insurance program America’s working families want and urgently need. The overwhelming majority of Americans, across party and demographic lines, say they struggle to manage work and family obligations. According to recent election polling commissioned by the National Partnership for Women & Families, nearly three quarters of voters (74 percent) report that they, their neighbors or their friends face hardship when managing work, family and personal responsibilities. The overwhelming majority of Americans (72 percent) say that they or their families would face significant financial hardship if a major health need arose – such as a serious illness or the birth of a new child. Across demographic and party lines, Americans want a national paid leave program. Eighty-six percent of voters say they favor new laws to help keep working families economically secure, including ensuring workers have the right to earn paid sick days and the creation of a family and medical leave insurance program. Workers, their families, businesses and our economy will benefit when our national policies are updated to reflect the caregiving needs of the workforce. There is a growing body of research that shows that providing workers with paid time off to care for a child or ill family member promotes families’ economic security, saves employers and taxpayers money and results in economic prosperity for local communities. Paid leave protects the economic security of new mothers and their families while reducing turnover and training costs for employers and boosting national tax revenues. Studies show that when new mothers have access to paid leave in connection with the birth of a child, they are more likely to work into their last month of pregnancy, to return to the workforce sooner, and to earn higher wages in the year following their child’s birth. (Laughlin, Maternity Leave and Employment Patterns of First-Time Mothers: 1961-2008, 2011; Houser & Vartanian, Pay Matters: The Positive Economic Impact of Paid Family Leave for Families, Businesses and the Public, 2012) Paid leave promotes families’ economic independence and reduces government spending. Studies show that new mothers and fathers who have access to paid leave 3 in connection with the birth of a child are less likely than new parents with no access to leave to receive public assistance or food stamps in the year following their child’s birth. (Houser & Vartanian, Pay Matters: The Positive Economic Impact of Paid Family Leave for Families, Businesses and the Public, 2012) Paid leave promotes quality child care, appropriate child care placements and children’s health. Parents who took leave through California’s family leave insurance program reported being more satisfied with their ability to care for their new children and arrange child care than those who did not. This is particularly important for parents in low-income jobs. (Appelbaum & Milkman, Leaves That Pay: Employer and Worker Experiences with Paid Family Leave in California, 2011) Paid leave allows older adults to continue working despite caregiving responsibilities, protecting their short-term economic stability and long-term retirement security. The average worker over 50 who leaves the workforce to care for a parent is estimated to lose more than $300,000 in earnings and retirement income over their lifetime. (MetLife Mature Market Institute, The MetLife Study of Caregiving Costs to Working Caregivers: Double Jeopardy for Baby Boomers Caring for Their Parents, 2011) A national paid leave insurance system would level the playing field for the nation’s employers by reducing costs for employers who already provide paid leave and allowing smaller businesses to give workers the leave time they need. A majority of small business owners understand that family leave insurance can be an efficient means of providing a pooled benefit that a small business alone may not be able to afford. In California, 60 percent of businesses say that they coordinate the benefits they provide with the state’s program, likely leading to cost savings for these employers. (Appelbaum & Milkman, Leaves That Pay: Employer and Worker Experiences with Paid Family Leave in California, 2011) 4
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