Paid Leave Economics

and why we must continue to push for a federal mandate on paid family leave

I have to admit, I have been mildly quiet about the paid leave saga at Kyte Baby. It was truly an unfortunate situation for all parties involved, and I hope companies are paying attention and taking steps to elevate care for new parents.

We’ve all been there where we felt our parental leave was mishandled or felt the company’s parental leave policies weren’t robust enough. And none of us would be wrong. Just about everyone in the United States and around the world understands the benefits of time off with a newborn, its such precious moments for mothers to heal, and for parents to bond with their newborn, and transition to a much larger role in their families. This adventure may be complicated by a stay in the NICU, in the case of Marissa at Kyte Baby, and the need for flexibility to squeeze out more time for paid work. However, time on with babies means time off at work. And employers know this, which is why flexible arrangements are met with lots of resistance. Bobbie, the organic baby formula company tried something different with their parental leave policy, providing extra day of paid leave for when baby is in the NICU, a policy that was enacted when an employee needed it. An example of how companies can be flexible and caring even when a policy does not exist.

The economic benefits of paid leave have been studied for a very long time, and we all agree that it should be a priority for employers and the state / federal government, however the mechanics of how to pay for it is largely unclear, and its why progress have stalled. The U.S. lacks a federal paid parental leave mandate. Leave policies vary widely between states and individual companies. The Family and Medical Leave Act (FMLA) provides for unpaid leave, but this does not cover all workers and does not offer any pay. Some states and companies have more generous policies, but there is significant variability. For comparison purposes, Canada offers a more generous and federally mandated parental leave system. Parents can receive up to 18 months of leave, with employment insurance benefits covering a portion of their income. This system is more uniform across the country, providing a consistent framework for businesses to follow.

Cost-Benefit Analysis Of Paid Leave In The Workplace