A Lesson In Moderation: How Oregon and Washington State’s Paid Family Leave Programs Highlight Minnesota Democrats’ Failure in Progress
The definition of progress is pretty straight forward: “advancing or developing toward a better, more complete, or more modern state.” In the name of progressivism, Minnesota Democrats have missed the mark with their latest Paid Family Leave proposal.
Don’t get us wrong, ensuring families have time off for life’s biggest moments is important. Unfortunately, rather than focusing on a mutually beneficial program that keeps small businesses and families in mind, Democrats have proposed one of the most extreme Paid Family Leave Programs in the country.
The excessiveness of the bill is highlighted even more by more thoughtful laws in states like Oregon and Washington State that seek to balance the needs of employees and employers. Just take a look at the comparisons:
Plan for Families: Oregonians get up to 12 weeks (14 weeks if pregnancy related) in paid leave for family leave, medical leave, or safe leave. Workers (full-time, part-time, and seasonal) will qualify if they’ve earned at least $1,000 the year before.
Plan for Businesses: Oregon businesses with more than 25 employees will pay 0.4 percent of the total contribution rate. Businesses with less than 25 employees can voluntarily pay the 0.4 percent in exchange for grants to hire new employees while workers use their leave.
Cost: Workers will pay 0.6 percent of their gross wages up to $132,900. Businesses will pay 0.4 percent. The cost will never rise higher than 1 percent total for businesses and employees.
Plan for Families: Workers in Washington State get up to 12 weeks in paid leave (16-18 weeks depending on pregnancy) for family leave or medical leave. Workers (full-time, part-time, and seasonal) will qualify if they’ve worked 16 hours a week or 820 hours in a year.
Plan for Businesses: Businesses don’t have to keep the employee’s job open if they have less than 50 workers, the employee hasn’t been there a year, or worked less than 24 hours a week.
Cost: Workers will pay approximately 0.6 percent of their gross wages up to $160,200. Businesses with more than 50 will pay approximately 0.2 percent unless they received a small business assistance grant.
Plan for Families: Minnesotans would get up to 24 weeks off a year, with 12 weeks off for medical and family leave. Workers will qualify for leave if they’ve worked 80 hours for a company.
Plan for Businesses: Businesses regardless of size would be required to contribute to the payroll tax, would not be given incentives to participate, would face a fine if they didn’t comply, and would be required to hold jobs for up to six months if employees took the full 24 weeks off.
Cost: Workers and small businesses would share the 0.7 percent payroll tax increase, though concerns about the legislation written suggest it could be required for businesses of all sizes to pay it in full.
Minnesota Democrats have failed to grasp what Oregon and Washington State based their programs on: balance. Without balancing the needs of business and employees, Democrats’ legislation could lead to business closures and unemployment – the very thing they claim to be preventing.