1
Estimating Usage and Costs of Alternative Policies to
Provide Paid Family and Medical Leave in the United
States
Issue Brief—Worker Leave Analysis and Simulation Series
1
January 2017
In this Issue Brief, we estimate the impact of
five different paid family and medical leave
policies at the national level.
The analysis relies on the U.S. Department of
Labor (DOL) 2012 Family and Medical Leave
(FMLA) survey for leave taking behavior and
the American Community Survey (ACS) 2009-
2013 for data about the affected workforce.
This brief is part of the Worker Leave
Analysis and Simulation Issue Brief Series
and is part of a study funded by the
Department of Labor’s Chief Evaluation
Office. For more findings in the Series,
please visit
https://www.dol.gov/asp/evaluation/Worke
rLeaveStudy/
This b
rief summarizes a simulation analysis of five different paid family and
medical leave model programs based on working programs in three states and a
federal proposal, all applied to the national workforce. The analysis simulates
worker behavior and estimates how many paid leaves would be taken under each
model, the average weekly benefit level for each leave, and the total costs of the
benefits paid. The analysis estimates the cost of benefits in dollars and as a share
of total payroll for the nation as a whole and across industries and establishments
of different sizes. As a share of national payroll, total benefits estimated to be
paid out range from 0.45 percent to 0.63 percent of payroll depending on the
generosity of the model simulated.
A national policy of paid family and medical leave would fill a large existing gap
in American workers’ income security. Most workers lack sufficient paid time off
reserved for substantial family and medical needs. The 2015 National
Compensation Survey (NCS) reports that only 13 percent of workers have access
to paid leave specifically to care for a newborn child, adopted child, a sick child,
or a sick adult relative. A larger share, 38 percent, has access to short-term
disability insurance that provides cash benefits for non-work related medical
conditions, including maternity and childbirth. Some workers may also be able to
access vacation time or paid sick days for illness or family care, but compared
with other countries with similar wealth, the United States lags far behind in the
amount of paid time available to workers to take care of their own health needs
and those of their families.
i
KEY FINDINGS
A national paid family and medical leave policy would increase workers’ leave taking, paid and unpaid, by 6 to 11 percent
annually, depending on the model policy.
Paid leaves taken would average from $428 per week to $493 per week, depending on the model program, all well belo
w
t
he maximum benefit available.
Benefits under national paid leave policy models cost between 0.45 and 0.63 percent of payroll.
Under all models nearly three-f
ourths of family and medical benefits paid out is for the worker’s own health; the share
going to maternity and child bonding ranges from 13 to 23 percent depending on the model policy.
1
This project was funded, either wholly or in part, with Federal funds from the U.S. Department of Labor’s Chief Evaluation Office under Contract # DOL-OPS-14-
U-00040. The contents of this publication do not represent the views or policies of the Department.
2
FIVE NATIONAL MODELS ARE COMPARED WITH THE CURRENT SITUATION.
Because maternity and childbearing requires both sick time and family care time and because the federal Family and Medical Leave
Act (FMLA) provides job protection to the majority of workers for both their own health and caregiving, the models simulated in this
brief include both short-term disability leave and caregiving leaves. The analysis relies on the 2012 FMLA survey of workers for
leave taking behavior and the American Community Survey (2009-2013) for data about the affected workforce.
The five alternative models analyzed include a federal proposal, the Family and Medical Insurance Leave Act (FAMILY Act), that
has been introduced in both houses of Congress, and four actual policies in the three states offering paid family leave benefits
(California 2002 legislation and 2016 revisions, New Jersey, and Rhode Island). These alternative policy models are applied to
national workforce data to simulate program costs and benefits, representing a range of policy designs and benefit generosity.
2
2
For comparability across program designs, all models include government employees and self-employed in the eligible workforce. All models include paid time off
both for own serious medical condition, including pregnancy and childbirth, and for care of other family members, including bonding with newborns. New benefit
levels available in California in January 2018 are also modeled for a total of five alternative models.
In
each of the existing state programs and the proposed FAMILY Act, family and medical leave is provided through a social insurance
program. In most of the existing state programs, the program are paid for by the employees; in New Jersey and the proposed
FAMILY Act, employers and employees both contribute to the program.
3
3
Economists generally find that benefit costs even when paid by the employer are generally passed over time to the workers in the form of lower wages (usually as
smaller and slower wage increases) and, if the workers value the benefits, employment is not reduced. See Lawrence H. Summers, “Some Simple Economics of
Mandated Benefits,” The American Economic Review, 79:2 (May 1989), pp. 177-183, and Jonathan Gruber, “The Incidence of Mandated Maternity Benefits,” The
American Economic Review, 84:3 (June 1994), pp. 622-641.
Table
1 offers an overview of key components of and
differences between the policy alternatives (with more details in Appendix 1), showing how they differ in eligibility and benefits,
with some substantially more generous than others.
Table 1: Description of Three Current State Family Leave Programs (including Temporary Disability) and a Federal Proposal
California Policy:
Short-term Disability Insurance
(SDI) & Paid Family Leave (PFL)
(2016 Revisions in BOLD.)
New Jersey Policy:
Temporary Disability Insurance
(TDI) & Family Leave Insurance
(FLI)
Rhode Island Policy:
Temporary Disability Insurance
(TDI) & Temporary Caregiver
Insurance (TCI)
Proposed FAMILY Act
Covered Employment and Eligibility
Covered workers must earn at
least $300 in wages in a 12-
month period.
Covered workers must earn
at least $8,400 in wages in a
12-month period or earn at
least $168 in wages in the past
20 weeks.
Covered workers must earn at
least $11,520 in wages in a 12-
month period, or in an
alternative calculation, $3,840.
Covered workers must be eligible
for disability insurance benefits
under Social Security and have
income from employment in the
12-month period before the
claim
.
a
Eligible Leave Uses
Eligible SDI leave includes
serious personal medical
condition and pregnancy.
Eligible PFL leave includes
child bonding or caring for a
family member.
Eligible TDI leave includes
serious personal medical
condition and pregnancy.
Eligible FLI leave includes
child bonding or caring for a
family member.
Eligible TDI leave includes
serious personal medical
condition and pregnancy.
Eligible TCI leave includes
child bonding or caring for a
family member.
Eligible leave includes serious
personal medical condition,
pregnancy, child bonding, caring
for a family member or active
military duty related needs.
Funding
SDI and PFL are funded by
an employee payroll
deduction.
TDI is funded by an employee
and employer payroll
deduction.
FLI is funded by an employee
payroll deduction.
TDI and TCI are funded by an
employee payroll deduction.
The FAMILY Act is funded by an
initial trust fund appropriation
and then by an employee and
employer payroll deduction.
3
California Policy:
Short-term Disability Insurance
(SDI) & Paid Family Leave (PFL)
(2016 Revisions in BOLD.)
New Jersey Policy:
Temporary Disability Insurance
(TDI) & Family Leave Insurance
(FLI)
Rhode Island Policy:
Temporary Disability Insurance
(TDI) & Temporary Caregiver
Insurance (TCI)
Proposed FAMILY Act
Weekly Benefits
Eligible workers on SDI and
PFL receive about 55% of
average weekly wages, up
to a cap of $1,129 a week.
Effective January 1, 2018,
most workers on PFL will
receive 60% or 70% of their
average weekly wage,
depending on their income, up
to the cap.
b
Eligible workers on TDI and TCI
receive about 67% of average
weekly wages, up to a cap of
$615 a week.
Eligible workers on TDI and TCI
receive about 60% of average
weekly wages, up to a cap of
$817 a week. Workers can
receive a dependency allowance
that is capped at 5 dependents.
Eligible workers can receive 66 %
of monthly wages up to a cap of
$4,000 a month with a monthly
minimum of $580.
Benefit Duration
SDI benefits are
payable for up to 52
weeks.
PFL benefits are
payable for up to 6
weeks.
TDI benefits are payable
until benefits received
equal one-third of total
wages or 26 times the
weekly benefit amount,
whichever is less.
FLI benefits are payable
up to 6 weeks or until
benefits received equal
one-third of total wages.
TDI benefits are payable
for up to 30 weeks.
TCI benefits are payable
for up to 4 weeks.
Benefits are payable for up to 12
weeks.
Job Protections
No
No
Yes
No
Notes:
a. The eligibility criterion included in the FAMILY Act is based on the rules for Social Security Disability Insurance benefits that generally require (1)
recent work within the last three years and (2) an adequate amount of covered work experience that increases with years of age. In the simulation
model, eligibility was based on working one quarter (13 weeks) in the previous year and earning enough to qualify for one credit (quarter) of work
under Social Security ($1,260 in 2016).
b. The original California policy is labeled CA-55 and the new more generous benefit policy is labeled CA-Rev in the tables that follow. CA-Rev also
drops the one-week waiting period for paid family leave benefits.
Source: See Appendix A.
4
BASED ON THE SIMULATED POLICIES, A NATIONAL PAID FAMILY LEAVE POLICY WOULD LIKELY INCREASE
WORKERS’ LEAVE-TAKING ACROSS THE UNITED STATES BY BETWEEN 6.0 AND 11.2 PERCENT ANNUALLY.
The simulation model estimates, in Table 2, the number of leaves that would be taken – paid or unpaid – by all 148,834,000 workers
ii
in the United States when covered by five alternative family and medical leave program models compared with the current situation.
Estimates for both the original and the recent expansions in California are included. Estimates of leaves taken under current law
(which encompasses what employers do voluntarily and what they are required to do in some states) are shown in the first column.
Under current law, U.S. workers take 27.5 million leaves per year for qualified family and medical reasons and about 60 percent
(16.3 million) are for their own illness or serious medical conditions, excluding pregnancy and childbirth. Maternity and child
bonding together account for about 16 percent, and family care for about 25 percent, of the estimated total leaves taken. Differences
between the alternative program models affect the shares of the types of leave taken only slightly. Compared with the current
situation, more total leaves would be taken under any of the paid leave alternatives examined; the increase in overall leaves is
modest, from 6.0 percent (program modeled on New Jersey) to 11.2 percent (program modeled on California’s recently passed
expansions).
Table 2: Total Number of Worker Leaves (Paid and Unpaid) Estimated Nationally U
nder Alternative Paid Leave Policy Models,
Distribution by Type of Leave, and New Benefits
Reasons for Leave
Current
CA-55
NJ
RI
FAMILY
Own Health
59.2%
59.8%
59.3%
59.4%
59.5%
Maternity & New Child Bonding
16.1%
15.4%
15.8%
15.6%
15.7%
Family Care
24.6%
24.8%
24.9%
25.0%
24.8%
Total number of paid and unpaid leaves (thousands)
27,470
30,083
29,128
29,457
29,520
Percent increase from current
N/A
9.5%
6.0%
7.2%
7.5%
Share of all leaves taken receiving program benefits
N/A
40%
35%
38%
39%
Number of leaves paid by program benefit (thousands)
N/A
12,164
10,207
11,198
11,378
Average weekly benefit
N/A
$428
$435
$444
$493
Source: Estimates based on IWPR-ACM Family Medical Leave Simulation Model (FML2, June 2016) based on 2012 FMLA Employee survey and
2009-2013 American Community Survey. Percentages may not equal 100 percent due to rounding.
Table 2 also shows the estimated number of leaves that would access program benefits for partial wage replacement. The largest
number of paid leaves would be taken under programs modeled on California’s nearly universal eligibility criteria. The other
program designs would provide partial wage replacement for smaller numbers of leaves taken each year, likely due to a combination
of program design features, such as waiting periods, eligibility criteria, benefit levels, and benefit durations. As Table 2 shows, from
35 to 40 percent of the leaves taken under the various models receive program benefits, and the average weekly benefit varies from
$428 to $493, a range of about 15 percent from lowest to highest. In all cases, average weekly benefits are well below the maximum
benefit available. Average leave lengths are also all less than the maximum weeks available, ranging from 6.3 to 7.7 weeks; average
total benefits per leave occurrence vary less in relative terms under the five programs, from $3,037 to $3,409 a range of about 12
percent.
4
An additional share of leaves taken may be paid by employers offering more generous provisions than those available from
these types of social insurance programs, all of which to date provide only partial pay.
5
BENEFITS UNDER NATIONAL PAID LEAVE POLICY MODELS COST BETWEEN 0.45 AND 0.63 PERCENT OF
PAYROLL.
Table 3 shows estimates of the cost of the program benefits that would be provided under alternate family and medical leave policies.
Under the five policy models, the cost for benefits would range from $31 billion (modeled on New Jersey program) to $43 billion
(modeled on the revised California program), depending on the variations in the policies. Covering more eligible workers, replacing a
4
For additional information about types of leave taken and associated benefits, see Appendix Table 2.
5
There will also be employers that reduce their current costs by shifting to the new federal program. Ruth Milkman and Eileen Appelbaum note in their 2013 book,
Unfinished Business: Paid Family Leave in California and the Future of U.S. Work-Family
Policy (Ithaca, NY: Cornell University Press), nine percent of respondents
in their employer survey said paid family leave had generated cost savings for their organizations.
5
larger percentage of usual earnings, and offering more weeks of paid leave increase the estimated costs. According to the Census
Bureau’s Current Population Survey data, in 2013 U.S. payrolls totaled $6.8 trillion; the cost of the new family and medical leave
benefits would range from 0.45 percent to 0.63 percent of total wages paid.
Table 3: National Program Benefits for Worker Leaves Taken Under Alternative Leave Policy Models by Type of Leave (in
Millions) and as a Percent of Payroll
CA-55
CA-Rev
NJ
RI
FAMILY
Own Health
$30,997.5
$31,662.5
$24,654.8
$27,775.5
$25,135.7
Maternity & New Child Bonding
$4,717.1
$10,046.8
$5,485.7
$5,187.2
$6,353.2
Family Care
$965.6
$1,308.1
$820.1
$775.8
$1,223.5
Total
$36,680.2
$43,017.4
$30,960.5
$33,738.4
$32,712.3
Total as a percent of total earnings
0.54%
0.63%
0.45%
0.49%
0.48%
Source: Estimates based on IWPR-ACM Family Medical Leave Simulation Model (FML2, June 2016) based on 2012 FMLA Employee survey and
2009-2013 American Community Survey. Total earnings based on IWPR analysis of 2011-2015 Current Population Surveys Annual Social and
Economic supplements. Earnings were adjusted for inflation using the CPI-U-RS to 2013 dollars.
Using the FAMILY Act as an example, and comparing the distribution of benefits in Table 3 with the distribution of paid and unpaid
leaves in Table 2, shows that the share of dollars spent for own health, 76.8 percent ($25.1 billion/$32.7 billion), is higher than the
share of all leaves used for own health (59.5 percent).
BENEFITS WOULD BE DISTRIBUTED DIFFERENTIALLY ACROSS INDUSTRIES AND ESTABLISHMENT SIZES.
Figure 1 shows the estimated amount of paid family and medical leave benefits provided to workers across the 14 Census major
industries as a percent of industry payrolls. Industries with lower rates of employer-provided benefits would be more likely to include
workers with unmet need for paid leave who would access the new programs and receive more benefits. Under the most generous
policy modeled, California’s revised program design, the costs of leave benefits range from 0.03 percent of payroll in the armed
forces to 0.81 percent of payroll in leisure and hospitality services; under the least generous, based on New Jersey’s program design,
benefit costs range from 0.02 percent to 0.56 percent of payroll in the same industries. Among private sector workers, those in
industries with more union representation, as well as with a larger share of higher paid, white collar jobs tend to have more access to
paid leave currently than those who work in other industries and thus would receive relatively fewer program benefits.
6
6
For more detail on industry costs, see Appendix Table 3.
6
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
0.70%
0.80%
0.90%
Percent of Payroll
Industry
Figure 1: Program Benefits as Percent of Payroll Across Industries
California-Revised California-55 Rhode Island
Source: Estimates based on IWPR-ACM Family Medical Leave Simulation Model (FML2, June 2016) based on 2012 FMLA Employee survey and
2009-2013 American Community Survey.
Similar to the results shown in Figure 1, Figure 2 shows the estimated amount of paid family and medical leave benefits received by
workers employed in establishments of different sizes as a percent of payroll, combining the two largest categories used in the
Current Population Surveys. There is less variation in benefits as a percent of payroll across establishment size than across industry,
even with the current unequal distribution of employer-paid family and medical leave by establishment size (in general smaller
establishments provide leave benefits to a smaller proportion of their employees than larger establishments
iii
). The model estimates
show a substantially greater percent of benefits as a share of payroll for establishments of 50 or more workers, compared with smaller
establishments, which is broadly equivalent to one of the most important criteria for coverage of job-protected leave under the
FMLA.
7
7
For more details about establishment size, see Appendix Table 4.
7
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
0.70%
0.80%
0.90%
Total Fewer than 10
employees
10 to 49
employees
50 to 99
employees
100 to 499
employees
500 or more
employees
Percent of Payroll
Establishment Size
Figure 2: Program Benefits as Percent of Payroll Across Establishment Size
California-Revised California-55 Rhode Island FAMILY Act New Jersey
Source: Estimates based on IWPR-ACM Family Medical Leave Simulation Model (FML2, June 2016) based on 2012 FMLA Employee survey and
2009-2013 American Community Survey.
The simulation model results, as well as administrative data in the states with paid leave programs, show that not every worker who
is eligible participates in paid leave programs. Reasons for non-participation include lack of knowledge, application burden,
anticipation of a short leave that would not outlast the waiting period (typically one week), anticipation that employer benefits are
more generous (likely with short leaves), and lack of job security.
iv
The likely importance of job security is shown in Figure 2,
where workers in establishments of 50 or more employees would receive substantially more benefits (as a share of payroll).
8
APPENDIX A: NOTE ON METHODOLOGY
The Institute Women’s Policy Research, together with Massachusetts economists Randy Albelda and Alan Clayton-Matthews,
developed and updated a simulation model to estimate the usage and costs of family and medical leave. The model simulates specific
leave-taking behavior (including number, length, benefit eligibility and benefit receipt) onto individual employees working in a state,
locality, or the nation using data from the Census Bureau’s 2009-2013 American Community Survey (ACS). The simulation model
estimates several aspects of leave taking behavior, conditional on demographic characteristics and leave type, including the worker’s
own health needs, maternity-related disability, new child bonding, and family care for spouse, children, or parents. These include the
probability of needing a leave, of taking a leave, of getting paid for a leave, of extending a leave if some or more pay were received,
and so on.
The model uses observable leave-taking behavior available in a national, comprehensive survey of family medical leaves, the 2012
DOL FMLA Employee Survey conducted by Abt Associates under contract to the U.S. Department of Labor, for estimating the
occurrence and leave behaviors around qualifying family events experienced by U.S. workers in the previous 18 months. (Leaves
taken in the past 12 months are also identified.) A series of models are estimated to predict leave need, level of paid leave offered by
an employer (if any), program take-up, duration, and other characteristics for each of six eligible leave types: own serious medical
condition; maternity and childbirth; new child care following birth, adoption, or foster placement; care for spouse; care for children;
and care for parents
8
. The model predicts the leave behaviors and characteristics as a function of the person’s demographic
characteristics for employed individuals in the ACS assuming that they behave similarly to the employees in the DOL FMLA
Employee Survey. After each person has been passed through the entire flow, the result is a history of leave-taking behavior for a
one-year period.
9
At the time of the 2012 DOL FMLA Employee Survey, five states (California, Hawaii, New Jersey, New York, and Rhode Island
had provisions for workers to be covered by temporary disability insurance for the workers’ own health needs; California and New
Jersey had expanded their state programs to cover bonding with a new child and family caregiving leaves. The 2012 DOL FMLA
Employee Survey asked what share of their usual earnings, if any, workers had received while taking recent leaves and included
options for disability insurance and state leave programs among the sources of payments that respondents could select. The
assumptions of the simulation model are that the worker would choose the compensation (employer provided wages or program
benefits) that is most advantageous for herself or himself. The national estimates for leave taking and associated benefits costs reflect
changes in worker behavior when national program benefits would be greater than those currently available through their existing
employer or state policy.
The DOL FMLA Em
ployee Survey data on observed behaviors are coupled with a few assumptions about unobservable behavior in
the presence of a leave program including:
How employer benefits affect leave program participation – The model assumes eligible workers compare weekly benefit
amounts available in the leave program to “next best option” (employer-paid wages or uncompensated leave in most cases).
The model also assumes a share of employers would, for longer leaves, shift their workers to the new national program
benefits and then top their workers’ benefits up to match the workers’ benefit levels prior to the national program.
Program Take Up Rates – The model applies a specific definition of take up at the point where an eligible worker has
experienced a qualifying medical or family event and decided to take leave in order to allow the analyst to specify the share
that will apply for program benefits. Reasons for less than full take up include lack of knowledge, difficulty of application or
use, and lack of job security.
How a program affects the length of worker leave:
8
Family and medical leave is defined in the 2012 DOL FMLA Employee Survey as leave for one’s own serious health condition; caregiving for a serious health
condition of a parent, spouse, relative, or child; for a new child; or to respond to the military deployment of a family member.
9
For more detail about the simulation model see two manuals: Randy Albelda and Alan Clayton-Matthews, 2010, The Institute for Women’s Policy Research and
Labor Resource Center Paid Family and Medical Leave Simulation Model, Washington, DC: Institute for Women’s Policy Research, Report #A143,
http://www.iwpr.org/publications/pubs/the-institute-for-women2019s-policy-research-and-labor-resource-center-paid-family-and-medical-leave-simulation-model
(accessed November 23, 2016), and Alan Clayton-Matthews and Randy Albelda, 2015, A Report and Simulation Model Presented to the Women’s Bureau of the U.S.
Department of Labor, under grant no. WB-26510-14-60-A-25.
https://www.dol.gov/wb/media/MA%20Full%20Simulation%20Model.pdf (accessed November 23, 2016).
9
o Short leaves may be extended according to estimates based on responses to “Would you take a longer leave if you
received some/additional pay?” – a question available in the earlier 2000 DOL FMLA Employee Survey.
o Leaves lasting longer than a leave program’s benefit period, but still considered eligible for employer pay, may be
extended.
o Leaves lasting more weeks than a leave program allows may be extended further even when no pay or benefits are
available.
The total benefit cost estimates generated by the IWPR-ACM Model compare well to actual benefits paid in CA, NJ, and RI (taking
into account the standardization of the programs imposed to make them comparable for this analysis), suggesting that the estimates
for the new California program and the proposed FAMILY Act are reasonable. It is likely that the benefit costs of the FAMILY Act
are slightly overestimated because the method used to estimate a worker’s earnings eligibility was generous (estimating Social
Security Disability Insurance earnings eligibility requires longitudinal data not available in this study).
10
APPENDIX B: TABLES
Appendix Table 1: Description of Three Current State Family Leave Programs (including Temporary Disability) and a Federal
Proposal
California Short-term Disability
Insurance (SDI) and Paid Family
Leave (PFL)
(2016 Revisions in BOLD.)
New Jersey Temporary Disability
Insurance (TDI) and Family
Leave Insurance (FLI)
Rhode Island Temporary
Disability Insurance (TDI) and
Temporary Caregiver Insurance
(TCI)
Proposed Federal Family and
Medical Leave Insurance –
the FAMILY Act
Covered Employment and Eligibility
Workers covered by the state
unemployment insurance law
with at least $300 in wages
that were subject to SDI
contributions during a 12-
month base period, are
covered under both SDI and
PFL programs.
Public employers can opt into
coverage; some may need to
negotiate through the
collective bargaining process.
Some domestic workers are
covered and those who are
self-employed can opt into
coverage.
In 2016 the SDI state plan
covered about 17.9 million
workers.
Workers covered by the state
unemployment insurance law
with at least $8,400 in wages
or 20 base weeks of at least
$168 in covered New Jersey
wages, are covered under both
TDI and FLI programs. For TDI,
employers may choose the
State plan or obtain private
coverage that is equivalent to
or better than the State plan.
Some public employers are
covered, others can opt into
coverage.
Some domestic workers are
covered and those who are
self-employed can opt into
coverage.
In 2014 the TDI state plan
covered 2,615,435 workers and
FLI covered 3,782,200 workers.
Workers covered by the state
unemployment insurance law
with at least $11,520 in wages
a
in a four quarter base period
are covered under both TDI and
TCI programs.
Public employers and some
unions can opt into coverage;
some may need to negotiate
through the collective
bargaining process.
Some domestic workers are
covered.
Covered private employment
was 404,411 workers in 2014.
Any worker eligible to receive
disability insurance benefits
under Social Security
b
who has
earned income from employment
during the 12 months prior to
filing a claim and has filed an
application to receive Family Act
benefits.
c
Eligible Leave Uses
SDI benefits are payable
when a covered employee
cannot work due to
pregnancy or a non-work
related illness/injury.
PFL benefits are payable
when a covered employee
takes time to bond with a
child within one year of the
child’s birth or foster
care/adoption placement or
to care for a family member
with a serious health
condition.
TDI benefits are payable when a
covered employee cannot work
due to pregnancy or a non-
work related injury/illness.
FLI benefits are payable when a
covered employee takes time
to bond with a child within
one year of the child’s birth or
foster care/adoption
placement or to care for a
family member with a serious
health condition.
TDI benefits are payable when
a covered employee cannot
work due to pregnancy or a
non-work related
injury/illness.
TCI benefits are payable when a
covered employee takes time
to bond with a child within
one year of the child’s birth or
foster care/adoption
placement or to care for a
family member with a serious
health condition.
The insurance can be used for
any qualified caregiving under
the Family and Medical Leave Act
of 1993.
d
This includes (1) caring
or bonding with a child within
one year of the child’s birth or
foster care/adoption placement
or (2) to care for a family
member with a serious health
condition; or (3) to personally
address a serious health
condition; or (4) to provide care
for a family member who is on
covered active duty in the
military.
e
Covered Family Relationships
Qualifying family members
Qualifying family members
Qualifying family members
Qualifying family members
11
California Short-term Disability
Insurance (SDI) and Paid Family
Leave (PFL)
(2016 Revisions in BOLD.)
New Jersey Temporary Disability
Insurance (TDI) and Family
Leave Insurance (FLI)
Rhode Island Temporary
Disability Insurance (TDI) and
Temporary Caregiver Insurance
(TCI)
Proposed Federal Family and
Medical Leave Insurance –
the FAMILY Act
include a worker’s child,
parent, parent-in-law,
grandparent, grandchild,
sibling, and spouse or
registered domestic partner.
include a worker’s child,
parent, and spouse or
registered domestic partner,
civil union partner.
include a worker’s child,
parent, parent-in-law,
grandparent, and spouse or
registered domestic partner.
include a worker’s child, parent,
and spouse or registered
domestic partner.
f
Funding
In 2016 SDI and PFL are
funded by an employee
payroll deduction of 0.9% of
wages; this does not apply
to annual wages above
$106,742.
In 2016 TDI is funded by an
employee and employer
payroll deduction. Employees
contribute 0.20% of the first
$32,600 of annual wages, with
a maximum yearly deduction of
$65.20. Employers contribute
from 0.10% to 0.75% on the
first $32,600 of employees’
annual wages with a maximum
yearly deduction of $244.
In 2016 FLI is funded by an
employee payroll deduction of
0.08% of the first $32,600 of
annual wages, with a maximum
yearly deduction of $26.08.
In 2016 TDI and TCI are funded
by an employee payroll
deduction of 1.2% of wages;
this does not apply to annual
wages above $66,300.
The FAMILY Act creates a trust
fund that is initially funded
through a one-time
appropriation
g
and further
funded through employee and
employer payroll contributions in
equal amounts.
h
Weekly Benefits
In 2016 eligible workers on
SDI and PFL receive
approximately 55% of
average weekly wages, up
to a cap of $1,129 a week.
Effective January 1, 2018,
most workers on PFL will
receive 60% or 70% of their
average weekly wage,
depending on their income,
up to the cap provided by
the Department of Industrial
Relations.
In 2016, eligible workers on TDI
and TCI receive two-thirds of
average weekly wages in the 8
weeks before leave begins, up
to a cap of $615 a week.
.
In 2016 eligible workers on TDI
and TCI receive 4.62% of
wages in the highest earning
quarter of the base year (or
approximately 60% of a
worker’s average weekly
wage during that quarter), up
to a cap of $817 a week.
A dependency allowance may be
approved for workers with
children younger than 18 or
incapacitated children over 18 for
TDI and TCI. The dependency
allowance is limited to 5
dependents and is equal to the
greater of $10 or 7% of the
weekly benefit rate.
For all covered workers the
benefit is 66 percent of monthly
wages
i
up to a maximum of
$4,000 per month with a monthly
minimum of $580. Benefits are
paid out monthly.
j
Benefit Duration
SDI benefits are
payable for a
maximum of 52
weeks.
TDI benefits are payable
until benefits received
equal one-third of total
wages during the base-
TDI can be received for
a maximum of 30
weeks.
Up to 12 weeks in a 12 month
period; this does not have to be
12
California Short-term Disability
Insurance (SDI) and Paid Family
Leave (PFL)
(2016 Revisions in BOLD.)
New Jersey Temporary Disability
Insurance (TDI) and Family
Leave Insurance (FLI)
Rhode Island Temporary
Disability Insurance (TDI) and
Temporary Caregiver Insurance
(TCI)
Proposed Federal Family and
Medical Leave Insurance –
the FAMILY Act
PFL benefits are
payable for up to 6
weeks in a year.
year, or 26 times the
weekly benefit amount,
whichever is less.
FLI benefits are payable
up to a maximum of 6
weeks or until benefits
received equal one-third
of total wages. Bonding
leave must be at least 7
consecutive days. Care
leave may be consecutive
or intermittent.
TCI can be received for a
maximum of 4 weeks.
.
consecutive.
k
Waiting Period
There is a 7 day
unpaid waiting
period. There is no
additional waiting
period for new child
bonding immediately
following a
pregnancy-related
leave.
Effective January 1,
2018, there will be no
waiting period for PFL
benefits.
There is a 7 day unpaid
waiting period; if benefits are
payable at any point in the 3
consecutive weeks following
the waiting period then the
waiting period can be
reimbursed. There is no
additional waiting period for
new child bonding
immediately following a
pregnancy-related leave.
None.
Yes – there is a 5 day unpaid
waiting period.
l
This may be
satisfied if the worker
participated in 15 or more days of
qualified care in the month
before the start of the new
benefit period.
Job Protections
No. SDI and PFL do not
provide job protection
directly, though some
workers may be eligible for
job protection under other
laws, such as the federal
FMLA or the California Fair
Employment and Housing
Act and Family Rights Act
(CFRA).
No. FLI does not provide job
protection, though some
workers may be eligible for
job protection under other
laws, such as the FMLA or
the New Jersey Family Leave
Act (NJFLA).
Yes. TCI requires that a
worker be restored to the
position the worker held
before leave or to a
comparable position.
Some workers may be
eligible for additional
protection under other
laws, such as the FMLA or
the Rhode Island Parental
and Family Medical Leave
Act (RIPFMLA).
No. the FAMILY Act does not
require employers with fewer
than 50 employees to hold
positions for employees or
reinstate them (although the
Family Act does make it unlawful
for an employer to discharge or
discriminate against any worker
for using, applying for, or
indicating an intention to apply
for benefits
.
m
Effective Dates
SDI 1946, PFL 2004,
and PFL expansions
2018.
TDI 1948 and FLI 2009.
TDI 1942 and TCI 2014.
Proposed.
Enforcing Agency
13
California Short-term Disability
Insurance (SDI) and Paid Family
Leave (PFL)
(2016 Revisions in BOLD.)
New Jersey Temporary Disability
Insurance (TDI) and Family
Leave Insurance (FLI)
Rhode Island Temporary
Disability Insurance (TDI) and
Temporary Caregiver Insurance
(TCI)
Proposed Federal Family and
Medical Leave Insurance –
the FAMILY Act
Employment Development
D epartment’s Disability
Insurance Branch
Department of Labor and
Workforce Development,
Division of Temporary
Disability Insurance (Family
Leave Insurance is
administered by the same
division.)
Department of Labor and
Training
The legislation would establish
the Office of Paid Family and
Medical Leave within the Social
Security Administration to be
headed by a Deputy
Commissioner to be appointed by
the Commissioner.
Notes:
a: Workers may also qualify if they earned at least $1,920 in one of their base period quarters, their total base period taxable wages were at least
one and a half times their highest quarter of earnings, or their base period taxable wages equal at least $3,840.
b: Eligibility for disability benefits under Social Security depends on several factors including age, earnings, and duration of work, among other
factors. For more information about disability eligibility and benefits under social security please see https://www.ssa.gov/pubs/EN-05-10029.pdf.
c: FAMILY ACT https://www.congress.gov/bill/114th-congress/senate-bill/786
d: FAMILY ACT https://www.congress.gov/bill/114th-congress/senate-bill/786
e: Department of Labor
https://www.dol.gov/whd/regs/compliance/whdfs28.pdf
https://www.dol.gov/whd/fmla/
f: http://www.nationalpartnership.org/research-library/work-family/coalition/family-act-faq.pdf
g: This must be paid back in 10 years.
https://www.congress.gov/bill/114th-congress/senate-bill/786/text
h: http://www.nationalpartnership.org/research-library/work-family/coalition/family-act-faq.pdf
i: http://www.nationalpartnership.org/research-library/work-family/paid-leave/family-act-fact-sheet.pdf
http://delauro.house.gov/index.php?Itemid=21&catid=2&id=1477:delauro-gillibrand-introduce-family-and-medical-insurance-leave-
act&option=com_content&view=article
j: https://www.congress.gov/bill/114th-congress/senate-bill/786/text
k: Bill text https://www.congress.gov/bill/114th-congress/senate-bill/786/text
l:
http://www.nationalpartnership.org/research-library/work-family/paid-leave/family-and-medical-insurance-act-section-by-section.pdf
m: http://www.nationalpartnership.org/research-library/work-family/coalition/family-act-faq.pdf
Appendix Table 2: National Worker Leaves Claiming Benefits Under Alternative Leave Policy Models by Types of Leaves Taken
CA-55
CA-Rev
NJ
RI
FAMILY
Number of leaves and percent distribution
Own Health
69.0%
59.7%
68.6%
68.6%
68.4%
Maternity & New
Child Bonding
21.9%
28.9%
23.1%
22.8%
22.9%
Family Care
9.1%
11.4%
8.2%
8.6%
8.7%
Total (thousands)
12,164
11,488
10,207
11,198
11,378
Length of leaves (mean weeks) per year
Own Health
9.4
8.8
8.6
8.7
7.0
Maternity & New
Child Bonding
4.6
4.8
5.9
5.2
5.5
Family Care
2.6
2.4
2.5
2.1
3.1
Total
7.7
7.3
7.5
7.3
6.3
Average (mean) leave benefits per year
Own Health
$3,881
$4,138
$3,724
$3,817
$3,439
Maternity & New
Child Bonding
$1,877
$2,214
$2,421
$2,137
$2,547
Family Care
$890
$959
$1,000
$827
$1,266
Total
$3,166
$3,409
$3,109
$3,170
$3,037
Total cost of worker leaves and percent distribution
Own Health
84.5%
73.6%
79.6%
82.3%
76.8%
14
Maternity & New
Child Bonding
12.9%
23.4%
17.7%
15.4%
19.4%
Family Care
2.6%
3.0%
2.6%
2.3%
3.7%
Total (millions)
$36,680.2
$43,017.4
$30,960.5
$33,738.4
$32,712.3
Source: Estimates based on IWPR-ACM Family Medical Leave Simulation Model (FML2, June 2016) based on 2012 FMLA Employee survey and
2009-2013 American Community Survey.
15
Appendix Table 3: New Program Benefits for Leaves Taken Nationally Under Alternative Leave Policy Models by Industry
CA-55
CA-Rev
NJ
RI
FAMILY
Program Benefits ($ Millions)
Agriculture, forestry, fishing, and hunting
$336.6
$404.0
$274.2
$291.6
$273.6
Mining $281.3
$305.5
$207.1 $251.9 $237.5
Construction $2,134.4
$2,470.6
$1,662.5 $1,868.7 $1,734.7
Manufacturing
$4,463.9
$5,216.0
$3,704.2
$4,109.4
$3,916.6
Wholesale and retail trade $4,438.6
$5,287.3
$3,869.5 $4,069.2 $3,869.9
Transportation and utilities $2,046.7
$2,405.6
$1,728.7 $1,863.6 $1,777.2
Information $960.9
$1,062.9
$728.9 $810.0 $827.7
Financial activities $2,885.7
$3,263.7
$2,409.9 $2,632.7 $2,608.5
Professional and business services
$4,246.1
$4,830.6
$3,208.4
$3,674.2
$3,591.1
Educational and health services $9,074.1
$10,784.2
$8,211.0 $8,785.0 $8,643.3
Leisure and hospitality $2,108.1
$2,624.6
$1,815.2 $1,920.2 $1,841.2
Other services $1,176.4
$1,495.7
$1,081.0 $1,162.7 $1,081.7
Public administration $2,510.4
$2,852.8
$2,052.7 $2,286.6 $2,300.6
Armed Forces
$17.0
$13.9
$7.2
$12.7
$8.6
Total $36,680.2
$43,017.4
$30,960.5 $33,738.4 $32,712.3
Program Benefits as a Percent of Industry and Total Earnings
Agriculture, forestry, fishing, and hunting
0.43%
0.52%
0.35%
0.38%
0.35%
Mining
0.40%
0.43%
0.29%
0.36%
0.34%
Construction
0.53%
0.61%
0.41%
0.47%
0.43%
Manufacturing
0.56%
0.65%
0.46%
0.51%
0.49%
Wholesale and retail trade
0.59%
0.71%
0.52%
0.54%
0.52%
Transportation and utilities
0.57%
0.67%
0.48%
0.52%
0.49%
Information
0.50%
0.56%
0.38%
0.43%
0.43%
Financial activities
0.45%
0.51%
0.37%
0.41%
0.40%
Professional and business services
0.42%
0.48%
0.32%
0.37%
0.36%
Educational and health services
0.59%
0.70%
0.54%
0.57%
0.56%
Leisure and hospitality
0.65%
0.81%
0.56%
0.60%
0.57%
Other services
0.53%
0.68%
0.49%
0.53%
0.49%
Public administration
0.62%
0.70%
0.51%
0.56%
0.57%
Armed Forces
0.04%
0.03%
0.02%
0.03%
0.02%
Total
0.54%
0.63%
0.45%
0.49%
0.48%
Source: Estimates based on IWPR-ACM Family Medical Leave Simulation Model (FML2, June 2016) based on 2012 FMLA Employee survey and
2009-2013 American Community Survey. . Total earnings based on IWPR analysis of 2011-2015 Current Population Surveys Annual Social and
Economic supplements. Earnings were adjusted for inflation using the CPI-U-RS to 2013 dollars.
16
Appendix Table 4: New Program Benefits for Leaves Taken Nationally Under the Alternative Leave Policy Models by Size of
Establishment
CA-55 CA-Rev NJ RI FAMILY
Program Benefits ($ Millions)
Fewer than 10 employees
$5,019.1
$5,992.6
$3,918.4
$4,385.4
$4,093.0
10 to 49 employees $3,883.5
$4,661.6
$3,332.4 $3,568.8 $3,482.4
50 to 99 employees $2,838.6
$3,356.0
$2,438.1 $2,642.1 $2,507.6
100 to 499 employees $5,194.0
$6,056.8
$4,486.9 $4,757.0 $4,693.6
500 or more employees* $19,745.0
$22,950.3
$16,784.7 $18,385.2 $17,935.7
Total
$36,680.2
$43,017.4
$30,960.5
$33,738.4
$32,712.3
Program Benefits as a Percent of Earnings in Each Establishment-Size Category
Fewer than 10 employees
0.43%
0.51%
0.34%
0.38%
0.35%
10 to 49 employees
0.44%
0.53%
0.38%
0.40%
0.39%
50 to 99 employees
0.61%
0.72%
0.53%
0.57%
0.54%
100 to 499 employees
0.60%
0.70%
0.52%
0.55%
0.54%
500 or more employees*
0.57%
0.66%
0.49%
0.53%
0.52%
Total
0.54%
0.63%
0.45%
0.49%
0.48%
Source: Estimates based on IWPR-ACM Family Medical Leave Simulation Model (FML2, June 2016) based on 2012 FMLA Employee
survey and 2009-2013 American Community Survey. . Total earnings based on IWPR analysis of 2011-2015 Current Population Surveys
Annual Social and Economic supplements. Earnings were adjusted for inflation to 2013 dollars using the
i
Bureau of Labor Statistics, “Insurance benefits: Access, participation, and take-up rates, civilian workers,” National Compensation Survey: Employee Benefits in the
United States (March 2015) <http://www.bls.gov/ncs/ebs/benefits/2015/ownership/civilian/table16a.pdf> (accessed September 15, 2016); Jody Heymann, Hye Jin
Rho, John Schmitt, and Alison Earle, “Contagion Nation: A Comparison of Paid Sick Day Policies in 22 Countries,” Center for Economic Policy Research (May
2009) <http://cepr.net/documents/publications/paid-sick-days-2009-05.pdf> (accessed September 15, 2016); William Adema, Chris Clarke, and Valerie Frey, “Paid
Parental Leave and Other Supports for Parents with Young Children: The United States in International Comparison,” International Social Security Review 69 (2): 29-
51 (2016).
ii
Department of Labor, Bureau of Labor Statistics. “Table 1. Employment status of the civilian noninstitutional population, 1945 to date.” Employment and Earnings
2015. http://www.bls.gov/opub/ee/2016/cps/annavg1_2015.pdf)
iii
Department of Labor, Bureau of Labor Statistics. “Table 32. Leave benefits: Access, civilian workers, March 2016” in Bulletin 2785: National Compensation
Survey: Employee Benefits in the United States, March 2016.
(http://www.bls.gov/ncs/ebs/benefits/2016/ownership/civilian/table32a.pdf)
iv
Klerman, Jacob, Kelly Daley, and Alyssa Pozniak. 2014. Family and Medical Leave in 2012: Technical Report. Cambridge, MA: Abt Associates Inc.
(https://www.dol.gov/asp/evaluation/fmla/FMLA-2012-Technical-Report.pdf),
California Employment Development Department. 2015. Paid Family Leave Market Research.
(
http://www.edd.ca.gov/disability/pdf/Paid_Family_Leave_Market_Research_Report_2015.pdf). Sil
ver, Barbara,Helen Mederer, and Emilija Djurdjevic. 2016.
“Launching the Rhode Island Temporary Caregiver Insurance Program (TCI): Employee Experiences One Year Later.” Final Report Submitted to the U.S.
Department of Labor Women’s Bureau on behalf of the Rhode Island Department of Labor and Training
(http://www.dlt.ri.gov/tdi/pdf/RIPaidLeaveFinalRpt0416URI.pdf).