BPHR’s Director Lisa Salcido, SPHR, SHRM-SCP provides answers to your pressing HR questions.
Question: What is in President Biden’s proposed paid family leave plan?
Answer: The American Families Plan was unveiled by President Biden on April 28, 2021. The proposed plan includes a paid leave provision requiring employers to provide twelve weeks of paid family and medical leave. If enacted, the paid leave program is estimated by the Biden Administration to cost $225 billion funded by increased taxes.
Here is the proposal:
- The program will ensure workers receive partial wage replacement to take time to bond with a new child, care for a seriously ill loved one, deal with a loved one’s military deployment, find safety from sexual assault, stalking, or domestic violence, heal from their own serious illness, or take time to deal with the death of a loved one.
- It will guarantee twelve weeks of paid parental, family, and personal illness/safe leave by year ten of the program.
- Workers would also receive three days of bereavement leave per year starting in year one.
- The program will provide workers up to $4,000 a month, with a minimum of two-thirds of average weekly wages replaced, rising to 80 percent for the lowest wage workers.
Biden also pushed for the Healthy Families Act to pass which will require employers to allow workers to accrue seven days paid sick leave per year to seek preventative care for them or their family–such as getting a flu shot, recovering from short-term illness, or caring for a sick child or family member or a family member with disability-related needs.
Biden’s proposal does not define terms such as “lowest wage workers” or clarify if the eligibility reasons for FLMA leave would be expanded. It is also unknown if the federal paid leave would replace, run concurrently, or conflict with state and local paid family and sick leave laws. Without bipartisan support, and considering the high cost, this proposal may look very different if an actual bill is drafted.
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DISCLAIMER: The material presented on this page is for informational purposes only and does not constitute legal advice or legal opinion.