State Paid Leave Fund: Critical Support for Families and States
FACT SHEET
April 2011
At some point, nearly all workers need to take time away from work to deal with a serious personal or family
illness, or to care for a new child. Yet only 11 percent of workers in the United States have access to paid
family leave through their employers, and fewer than 40 percent have access to personal medical leave
through a temporary disability insurance program.1 Laws providing paid family and medical leave
allow workers to continue to earn a portion of their pay while they take time away from work
to: Address a serious health condition (including pregnancy); care for a family member with a serious health
condition; or care for a newborn, newly-adopted child or newly-placed foster child.
Why Do Workers Need Paid Leave?
When a worker develops a serious health condition, has a seriously ill family member, or becomes a parent,
he or she needs paid, job-protected time off in order to address the
health problem and/or meet caregiving needs. Employer practices –
Americans Want a
and our public policies – have not caught up to this reality. As a
Paid Leave Standard
result, most workers are forced to jeopardize their economic
security and put their jobs at risk when they need to take
Nearly eight in ten U.S. adults (78
leave.
percent) say that family and
maternity leave is a “very
The State Paid Leave Fund
important” labor standard for
workers.2
President Obama’s proposed FY 2012 budget includes
$23 million to establish a state paid leave fund within the
U.S. Department of Labor.
Grants made from this fund would assist states with planning, startup and outreach activities related to paid
family and medical leave programs. The state paid leave fund would promote state innovation in
establishing paid leave programs that meet the needs of working families.
The grants would help states launch and implement paid leave programs by covering startup
costs for information technology, staffing and operating budgets.

Funds could be used in states like Washington, where legislation to establish a paid leave program
was passed in 2007 but has yet to be implemented. They could also go toward improving public
outreach, planning or actuarial studies of paid leave.

With so many state budgets in crisis, federal funds that would ease startup costs are a critical
ingredient in convincing state lawmakers to create the paid leave programs working families need.
Paid Leave Policies Benefit Families, Businesses and Communities
When a personal or family medical crisis strikes, workers often have no choice but to take
unpaid leave or quit their jobs because they lack access to paid leave.

Millions of workers cannot afford to take advantage of the unpaid leave available through the federal
Family and Medical Leave Act (FMLA); 78 percent of workers who need but do not take FMLA leave
say they simply cannot afford unpaid time off.3

Low-income workers are most in need of financial support when illness strikes or when a new child
joins the family, but the least likely to have access to any type of leave.4
Supporting the creation of state paid family and medical leave programs will help ensure
economic security for workers and employers, as well as stability for the economy.

By promoting job stability and retention in ways that benefit both workers and employers, paid
family and medical leave programs help promote healthy businesses, healthy families and a healthy
national economy.

These programs are a wise investment that will benefit the economy and prevent workers from
having to choose between their own or their family’s health, and their financial security.

Research proves the positive impact paid leave programs have on worker retention. Women who
have access to paid leave are more likely than those who don’t to return to work after having a child.5
Paid leave programs help reduce health care costs.

Paid family and medical leave programs contribute to improved health. Sick children recover faster
when cared for by their parents. The mere presence of a parent shortens a child’s hospital stay by 31
percent.6 And active parental involvement in a child’s hospital care may head off future health care
needs, partly due to increased parental education and awareness. 7
Existing state paid leave programs provide effective models – and have proven benefits.

California and New Jersey have successfully implemented paid family leave insurance programs that
provide workers with a portion of their wages for up to six weeks while they care for a family member
or a new child. These funds are paid for by employee contributions and have been used by hundreds
of thousands of workers.

A recent study of California’s paid leave program found that after more than five years, the vast
majority of employers report that it has had a “positive effect” or “no noticeable effect” on business
operations. 8
In Times Like These, Working Families Need Paid Leave
When families are struggling and jobs are scarce, workers need paid family and medical leave more than
ever. Our nation’s working families should not have to jeopardize their financial security to meet core family
health needs. State paid leave funds can advance policies proven to benefit families, businesses and the
economy. The time for action is now. For more information and to get involved, go to
www.nationalpartnership.org.
1
U.S. Department of Labor, Bureau of Labor Statistics. (2010, March). Employee Benefits in the United States National Compensation
Survey: Employee Benefits in the United States, March 2010 (Table 32). Retrieved 13 December 2010, from
http://www.bls.gov/ncs/ebs/benefits/2010/ebbl0046.pdf
2
Smith, T., & Kim, J. (2010, June). Paid Sick Days: Attitudes and Experiences. National Opinion Research Center at the University of
Chicago for the Public Welfare Foundation Publication. Retrieved 2 December 2010, from
http://www.publicwelfare.org/resources/DocFiles/psd2010final.pdf
3
Cantor, D., Waldfogel, J., Kerwin, J., et al. (2001). Balancing the Needs of Families and Employers: Family and Medical Leave Surveys,
2000 Update. Rockville, MD: Westat.
4
See note 1.
5
Boushey, H. (2009, May). Helping Breadwinners When It Can't Wait: A Progressive Program for Family Leave Insurance. Center for
American Progress Publication. Retrieved 31 March 2011, from, http://www.americanprogress.org/issues/2009/06/pdf/fmla.pdf
6
Heymann. J. (2001, October 15). The Widening Gap: Why America’s Working Families Are in Jeopardy—and What Can Be Done
About It. New York, NY: Basic Books.
7
Palmer, S. (1993). Care of sick children by parents: A meaningful role. Journal of Advanced Nursing, 18(2), 185–191. As cited in
Lovell, V. (2004). No Time to be Sick: Why Everyone Suffers When Workers Don’t Have Paid Sick Leave. Annie E. Casey Foundation;
Institute for Women's Policy Research; Ford Foundation.
8
Appelbaum, E & Milkman, R. (2011, January). Leaves That Pay: Employer and Worker Experiences with Paid Leave in California.
Center for Economic Policy Research. Retrieved 25 March 2011, from http://www.cepr.net/index.php/publications/reports/leaves-thatpay
The National Partnership for Women & Families is a non-profit, non-partisan advocacy group dedicated to promoting
fairness in the workplace, access to quality health care and policies that help women and men meet the dual
demands of work and family. More information is available at www.nationalpartnership.org.
© 2011 National Partnership for Women & Families
All rights reserved.
2