Editor’s note: This commentary is by Ashley Moore, who is the outgoing state director for the Main Street Alliance of Vermont and co-chair of the VT FaMLI Coalition.
[V]ermonters want to be able to heal and to be there for loved ones when they need care. Yet most face financial hardship as a result. Over the past several years, a broad coalition has been working with legislators to create a statewide paid family and medical leave insurance program.
This program would allow working Vermonters the opportunity to meet their personal and family needs while maintaining their jobs and financial security, helping build a foundation for current and future generations to thrive. A strong program has the potential to help attract more young professionals to the state, encourage young people and families to stay in Vermont, and level the playing field for small businesses.
Seven states and Washington, D.C., have already enacted laws or implemented state paid family and medical leave insurance programs, giving Vermont successful models to look to as we develop our program. As we debrief the progress from the 2019 legislative session and look toward 2020, it’s important to ensure we set Vermont on a path to success.
All state family and medical leave insurance funds are publicly-administered and use a social insurance model that pools small contributions so those on leave can receive wage replacement. Publicly administered social insurance models give states the ability to set strong benefit parameters and keep administrative costs and benefit costs low. By pooling the risk and resources, they make coverage as efficient and affordable as possible, ensuring the benefit can be provided universally at a low per-person cost.
Privatization of social insurance programs presents multiple risks and drawbacks. Private programs are driven by profit and have a built-in incentive to deny claims. Keeping our program publicly administered is a key component to ensuring it operates efficiently, transparently, remains cost-effective and meets the needs of Vermonters. As the nature of employment continues to change, the creation of public, portable benefits is critical to keeping Vermonters afloat in challenging times.
Employees of businesses of all sizes must be included in this program. The majority of Vermont businesses are small, with 98.5% employing fewer than 100 employees, and these are the very businesses that often struggle to provide robust benefit packages. In order to ensure that Vermont’s small businesses can compete with larger employers and retain top talent, small employers need a level playing field. And in order to ensure leave is available to employees who need it most, it must be universal.
Paid family and medical leave insurance programs are designed to meet bonding, health and caregiving needs through all stages of life. Data from public health organizations and other state programs show us that workers need a minimum of 12 weeks per person. The data also show us that 75% of those taking leave use it to care for a serious personal or family illness. Wage replacement levels must be high and progressively structured, so that all earners — and particularly the lowest earners — can access the leave. All leave-takers need job protection, and the definition of family must be inclusive.
A minimum of 12 weeks per person is crucial for optimal health outcomes and also important for administrative simplicity. The federal Family and Medical Leave Act and Vermont’s Parental and Family Leave Act allow for up to 12 weeks of job-protected unpaid leave for certain eligible employees. For ease of administration, Vermont’s upcoming paid family and medical leave insurance program should structure allowable leave time to mirror existing law.
We know that more and more adult children are now providing care for aging parents than ever before. In fact, the share of adult children providing care to aging parents has tripled over the past 15 years and by 2030, it is estimated that the share of population ages 65 and older will make up one-fifth of the U.S. population. As a key component of this program, family caregiving leave will help boost employment and wages among women, who retain the majority of caregiving responsibilities in the home and who make up 66% of the labor force and are primary or co-breadwinners in 53% of families with children.
Leave to bond and recover from childbirth is also critical. Research shows that when parents have access to adequate paid family leave, children are more likely to be taken to the pediatrician for regular check-ups and immunizations and more likely to be breastfed, which is proven to have positive health implications for both mother and child.
Another key component of this program is personal medical leave. Currently, for those who are eligible for FMLA and take unpaid leave, over half of those leaves are taken for one’s own serious illness. Nationally, nearly one in three seriously ill workers either lose their jobs or have to change jobs as a result of their illness. Furthermore, a 2007 study found that more than 40% of bankruptcies in the U.S. were the result of lost income due to serious illness of either the employee or their family member. Access to wage replacement, should such an event arise, provides a safety net to help keep Vermonters afloat.
A statewide paid family leave insurance program for all working Vermonters will support the health, well-being, and economic security of our children, families, and small businesses and ensure that the next generation has a bright future. As we continue on the path to implement such a program, it’s crucial we look to successful programs across the country and enact a program that works.
