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Why Does Paid Leave Have To Be Offered If HR Has A Social Duty To Provide It?

Sep 7

Corporate social responsibility issues are more prevalent today than they have ever been.

Politics-related conversations in the workplace used to be frowned upon. Many businesses are now expressing their political opinions in the open. Non-governmental organizations (NGOs) are increasingly filling the gaps left by the federal and state governments on problems like diversity and equal opportunity. Some of these concepts, including paid family and medical leave, have only lately gained popularity in the media.

In the United States, there are now just nine states that provide paid family and medical leave. The remaining 42 states' citizens get relatively little help. Only 16% of American employees have access to paid parental leave, with women bearing the bulk of this burden. A new research from American University found that women are 20% more likely to quit their employment after having a child if they don't have access to paid maternity leave. In less than two weeks after giving birth, every fourth woman without paid leave goes back to work, proving that they cannot afford to stop working.


Costs

Employees who reside in any of the eight states covered by the NLRA are currently eligible to take advantage of corporate policies like paid leave programs. The richest Americans' federal income tax rate would increase under Biden's proposal from 37.6 percent to 39.6 percent. Meanwhile, other states finance paid leave policies through payroll taxes that include both company and employee payments.

Although a government program may make employers pleased, expenses would rise since more employees will be able to benefit from paid leave under it. It is anticipated that more workers would take time off, enjoying longer vacations as well. Parents and caregivers will have more time to spend with their families as a result, but businesses will also need to be able to scale up for more replacement workers, better management of these workers, and benefits for both the employees on leave and their replacement recruits. Paid time off is a wise financial investment for the company in terms of employee loyalty, engagement, and retention.


Compliance

Employers will have a harder difficulty complying if federal restrictions are added on top of already-existing state laws. If Biden's proposal is adopted, businesses would be required to abide by all municipal regulations as there is now no safe harbor accessible. Biden's idea is vague, so it's important to understand how the government program would work with other legally mandated programs like stacking time or offset benefits. The practicalities of locating eligible workers and covered family members, as well as the blending of state and federal rules and regulations, complicate an otherwise straightforward program. This is an excellent chance for firms to decide whether their leave policy will be uniform for all workers or if the employee's leave will depend on their state of residence.

 

Culture

Even though the government has advocated for paid family and medical leave, many working caregivers are unaware of their entitlements. A recent Pew survey found that there are becoming more multigenerational homes in America. Employees who need to look for grandparents, siblings, or other members of their extended family are not protected under Biden's FMLA-like scheme. Although caring for someone with a severe illness is often motivated by this need, there are also other socioeconomic causes for this, such as the rise in elderly fraud instances. Employers should consider how inclusive their corporate leave policies should be based on the demographics of their workforces.

In the end, it's just a matter of time until employees get access to federally funded leave. Employees now participate in elections by voting and spending their hard-earned money. Based on the principles they uphold, people decide which companies to patronize and for which to work. Because of this and the knowledge that their existing and potential workers are keeping an eye on them, businesses are feeling the pressure to be on the right side of history. More businesses are expected to adopt paid family and medical leave plans in the future to better support their workers and their families.