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One to Keep An Eye On: Paid Family Leave Policy (Vermont)


As with many employment and labor law related cases (and bills) being litigated around the country, there are always a few that stand out.  

This is one to keep an eye on.


Recently, Democratic lawmakers in Vermont introduced a bill in the State Legislature which would expand the family leave policy in the state and allow employees to take up to 12 weeks of paid leave per year for childbirth, serious illness, or to care for an aging parent.  (The current family leave plan in Vermont provides for about 4.6 weeks of leave.)  Of course the question that follows is always, 'ok, how are you going to pay for it?'  And that is perhaps where this proposal gets a bit contentious.  Under the current proposal, there would be a .93% mandatory payroll tax on employees in Vermont.  Note, the .93% could be adjusted each year but would be capped at 1%.  As well, employers could voluntarily cover some of that payroll tax if they chose to, but it would not be a requirement.

Under this proposal, workers who took the paid family leave would be entitled to receive their normal weekly income capped at twice the state livable wage (approximately $1,042.00/week).  It goes without saying that providing up to 12 weeks of paid family leave would put Vermont at the forefront as a trailblazer on the issue (as this proposal would provide nearly four more weeks of leave than any other state).

That is not to say there will not be a fight to get this proposal passed.  While family advocacy groups, the Vermont AARP, and some Vermont businesses (with approximately 47% of businesses in the state backing paid family leave) support the proposal, the Republican Governor, Phil Scott, has argued that the bill would ultimately cost workers in the state money and hinder growth.  In fact, a recent analysis has shown that the expanded family leave plan would cost Vermont $2.5 million in new technology to implement the bill as well as costs to make up for employees taking the additional time off.  As a result, the Governor has indicated he would veto the bill if it reached his desk.

Last Friday, the Vermont House Committee on General Housing and Military Affairs votes in favor of the bill by a 7 - 4 vote.  The Vermont House Committee on Ways and Means is to take up the issue next.  This bill has a ways to go still, as the House Speaker Mitzi Johnson indicated the bill is not a priority this year.  Rather, the plan would be to approve the bill and advance it out of the Hoise so that the Senate could consider it next year.  Perhaps it is true that good things really do take time...



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