Prior to his first address to Congress on April 28, 2021, President Biden introduced the American Families Plan, a $1.8 trillion plan that includes a provision for national paid family and medical leave.
President Biden addressed the paid leave component of the plan during his speech, saying that “No one should have to choose between a job and a paycheck or taking care of themselves or their loved ones, or their parent or spouse or child.”
Under the plan, most employees would receive a minimum of two-thirds of their average weekly wages – up to $4000/month – for time off for the birth a child, to treat a serious illness, care for a sick family member, handle a family member’s military deployment, or to deal with issues related to sexual assault, stalking, or domestic violence. Lowest wage workers would receive a minimum of 80% of their average weekly wages, up to $4,000/month.
In addition, the plan would guarantee employees 12 weeks of paid parental, family, and personal illness/safe leave by the 10th year of the program. The paid leave program would apply to employers with 15 or more employees.
The Biden administration has estimated the cost of the paid leave program at $225 billion over the next decade, which would be offset by raising taxes on Americans making more than $400,000 per year as well as the elimination of lower tax rates on capital gains and dividends.
Currently, the Family and Medical Leave Act (FMLA) allows eligible employees to take up to 12 weeks of unpaid leave for their own or a family member’s serious illness or for the birth or adoption of a child. The FMLA only applies to employers with 50 or more employees.
In addition to establishing national paid family leave, the American Families Plan would also help low-and middle-income Americans by extending tax cuts and tax credits, provide free preschool for 3- and 4-year-old children and free community college for adults, ensure that low- and middle-income families pay no more than 7% of their household income on child care, and more.
HBL has experience in all areas of benefits and employment law, offering a comprehensive solution to all your business benefits and HR/employment needs. We help ensure you are in compliance with the complex requirements of ERISA and the IRS code, as well as those laws that impact you and your employees. Together, we reduce your exposure to potential legal or financial penalties. Learn more by calling 678-439-6236.
Hall Benefits Law, LLC
