Washington Policy Watch

News and perspective on public policy issues affecting Washington's economy and quality of life, brought to you by the Economic Opportunity Institute.

February 22, 2012 • 11:17 am 1

New evidence shows CA paid family leave is good for workers and employers alike

New research shows workers and families are benefiting from California’s paid family leave law – and most employers say it’s had either positive effects or no impact on their business.

Under California’s first-in-the-nation paid family leave (PFL) program, enacted in 2004, workers who become new parents or care for an ill family member can take up to 6 weeks of partially paid leave (55% of a worker’s weekly pay).

Researchers at Columbia University who analyzed the effects of the PFL program on the labor market and new mothers’ use of leave found PFL doubles the average length of leave for new mothers – from 3 weeks to at least 6 weeks.

These effects were most evident among mothers from economically disadvantaged groups – including non-college educated, unmarried, Hispanic, and Black moms – whose average length of leave increased from 1-2 weeks to 4-7 weeks. The research also suggests that PFL increases work hours and wage income for those mothers who returned to work.

On the employer’s end of the experience, another study found business owners’ fears of increased costs and abuse of the policy were unfounded. Six years after California implemented PFL, more than nine in ten employers reported they were not aware of any instances of abuse of the program. Small businesses were less likely than larger companies to report negative effects. Other findings from employers include:

  • 89% reported “positive” or “no noticeable” effects on productivity.
  • 91% reported “positive” or “no noticeable” effects on profitability or performance.
  • 96% reported “positive” or “no noticeable” effects on turnover.

Researchers also found that PFL increased retention among workers in low-quality jobs (paying less than $20 per hour and providing employer-paid health insurance): 83% who used PFL returned to the same employer, compared with 74% of those who did not use PFL. There are also positive effects on workers’ ability to care for a new child and arrange child care, and increased duration of breastfeeding for all new mothers who used PFL.

Locally, the Washington Family Leave Coalition is working to ensure people in our state also have access to paid leave. The state’s Family Medical and Leave Insurance program was established in 2007, and is currently scheduled for implementation in 2015.

Filed under: paid family leave, work and family, , , , , , , , , , , , , , , , ,

February 13, 2012 • 3:55 pm 0

Seattle launches Caring Across Generations campaign to bring attention to the care crisis

Presenters at Seattle's Care Congress share personal stories of caregiving

As the nation’s population ages – an American turns 65 every 8 seconds – more families are turning to paid caregivers and taking on caregiving responsibilities themselves.

The local launch of the national Caring Across Generations movement (which kicked off last summer in Washington, D.C.) took place on Saturday. Nearly 200 people gathered at the Greenwood Senior Center for Seattle’s Care Congress to tackle the challenges presented by the growing need for affordable, quality long-term care.

Caring Across Generation focuses on five major efforts:

  • Job creation: Create 2 million new jobs in home care, and explore new funding streams for job creation.
  • Job quality: Establish stronger labor standards to protect workers and recipients of care. Improve job quality, wages and access to health insurance.
  • Training and career ladder: Build a career ladder and improved job training and certification programs.
  • Path to legalization: Create a new visa category to create a path to citizenship for participants in training and certificate programs.
  • Support for individuals and families: Preserve and expand Medicaid, Medicare, Social Security and the Affordable Care Act. Support unpaid family caregivers who are taking time from employment with Social Security credits and paid family leave.

One of the presenters was Sylvia Liang, who left her career to care for her autistic son. Once Sylvia’s son turned 18, she was able to receive some compensation for the hours she spent providing care. But state budget cuts resulted in a reduction in the hours for which she is paid. This loss of income coincided with family tragedy when her husband suddenly passed away. Now the family is struggling to stay afloat financially, and Sylvia fears that if she is forced to return to other employment her son will lose his ability to function in society.

As others shared their experiences in smaller groups, it was evident that Liang’s story wasn’t unique. Families across Seattle are facing economic, emotional, and health challenges because of the current inadequacies of our systems and standards. Better pay and training for caregivers, and paid family leave to provide adequate time to respond to changing needs for levels of care, are among the changes our society needs.

Seattle City Council Member Nick Licata spoke to the crowd, sharing his personal experiences in caring for family members. City Council Member Mike O’Brien and representatives from the offices of Senator Murray, Senator Cantwell, and Representative McDermott were also there to show support.

Other presenters included domestic workers and caregivers, who shared their struggles to receive adequate training, secure fair wages and benefits, and obtain quality, affordable care for their loved ones.

Seattle is the third city, after Austin and San Francisco, to host a Care Congress. At least seven more are scheduled in cities across the country through this summer. The Congresses are the start of an exciting movement. The next meeting of the Seattle Council will be on Wednesday, February 28 from 4:00-6:00 pm at Casa Latina (317  17th Ave South, Seattle 98144). All are welcome to join!

Filed under: paid family leave, Uncategorized, work and family

February 3, 2012 • 8:48 am 1

Research shows paid family leave not only better for families and workers – it’s better for business too

Several states have adopted paid family leave policies as an important protection for the economic security of working families. After New Jersey implemented its own statewide policy in 2009, researchers from Rutgers decided to investigate how workers benefited from the change. They found paid leave is not only good for families, it’s better for businesses and leads to reduced use of public assistance:

  • Women who take paid leave are more likely to be working one year after a child’s birth than those who do not take leave. This means that employers who invest in their workers ultimately benefit from reduced turnover. Recruiting and hiring new employees is far more costly than keeping the ones you already have.
  • Both women and men who take paid leave are significantly less likely to utilize public assistance programs than those who do not take leave. Food stamps and other public assistance programs are necessary to protect the most economically vulnerable. But it makes sense to invest in programs that prevent poverty, too. Putting systems in place to best support our workforce ultimately reduces the extraordinary fiscal and social costs of poverty – something that benefits all members of our communities.

As more women have entered the workforce and the population has aged, increased numbers of workers have found themselves in situations that require an extended absence from work – whether to care for a new baby, an aging parent or a sick spouse.

The 1993 federal Family Medical Leave Act, ensured up to 12 weeks of unpaid leave for workers to bond with a new child or care for sick family member. This legislation set an important workplace standard, but its reach is limited — extending only to companies with more than 50 employees and putting restrictions on which workers are able to access the benefit. And, of course, the leave is unpaid. While time to bond with a child or care for a family member is critical, the loss of income over an extended period of time is often impossible for families to manage.

To address the inadequacies of the federal policy, several states have crafted more extensive and inclusive policies to better meet the needs of working families. Currently, two states – California and New Jersey – have policies in place that offer family leave insurance as a component of their temporary disability insurance programs. Both offer up to six weeks of paid leave.

Washington, too, established a Family and Medical Leave Insurance Program in 2007 to provide workers with up to 5 weeks of paid leave. However, the program has not been funded, and implementation has been pushed to 2015. In the meantime, advocates from the Washington Family Leave Coalition have been working to improve the legislation (including an increase to 6 weeks of paid leave) and update the funding mechanism.

Until Washington and other states can establish good policies to address the needs of working families, many will continue to struggle for economic security. Paid family leave is an important workplace benefit that ultimately extends far beyond workers – promoting healthy business, families and communities.

Filed under: paid family leave, work and family, , , , ,

February 2, 2012 • 8:32 am 0

Restaurant owners taking the ‘high road’ report better loyalty, creativity and productivity

Taking the High Road: A How-to Guide for Successful Restaurant Employers

A new report from Cornell University and Restaurant Opportunities Center United highlights examples of restaurateurs across the country who have created “win-win-win” solutions for workers, diners, and employers by using “high-road” employment practices.

Nationally, restaurant workers typically earn very low wages; 90% do not receive paid sick days, paid vacation, or health insurance through their employer either. The Cornell/ROC report highlights just how much those policies cost employers: between $4,000 and $14,000 per employee turnover. Costs include recruitment and screening, training, uniforms, admin, and unemployment insurance — as well as negative impacts on team morale, trust building, and relationships with regular customers.

The alternative is “high road employment”, which employers in this report define as practices that support workers and unleash their loyalty, creativity, and productivity to make the restaurant successful. Those practices include livable wages, a healthy workplace through paid sick days, vacation, or health insurance; and career ladders for employees through training and internal promotions policies.

Several prominent local restaurant owners were part of the campaign for a paid sick days ordinance in Seattle, citing the positive effects paid sick days have on the bottom line by improving morale, reducing turnover and reducing the spread of illness. The high-road employers interviewed for this study also reported that the benefits of increased productivity and reduced cost of employee turnover outweigh short-term costs of improving workplace practices. Summary | Full report

Filed under: minimum wage, paid family leave, paid sick days, , ,

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