Econ NYS Family Medical Leave

NEW YORK STATE PAID FAMILY MEDICAL LEAVE ACT

MANAGERIAL ECONOMICS ALEXIS LAKE, AMANDA MARKESSINIS, SALMA MOULINE

AGENDA Goal: inform you of the NYS Family Medical Leave Act • Who • What • Benefits • Federal vs. State • Economic Principles • Pros and Cons

WHAT IS IT? Job protected, paid-time for employees to:

ASSIST

BOND

CARE

Family member is deployed abroad on active military service

Newly born, adopted, or fostered child

Family member with a serious health condition

WHAT BENEFITS DOES IT PROVIDE?

Up to eight weeks of paid leave in 2018

50% of average weekly pay Maximum $652.96

Increases to 12-weeks by 2021.

Continued healthcare benefits

WHO? • Most NYS residents working at private employers • Public employers may opt into the program • Employees have to opt out of contributions

WHO? FULL-TIME EMPLOYEES 20 or more hours per week, after 26 consecutive weeks of employment

PART-TIME EMPLOYEES Less than 20 hours per week are eligible after working 175 nonconsecutive days

STATUS Eligible regardless citizenship and/ or immigration status

HOW? Employees Benefits

Deduction of 0.126% from weekly wage

50% of average weekly wage in 2018

67% of average weekly wage by 2021

Capped at $652.96 which is 50% of NYS Average Weekly Wage

Disability insurance program (NYS since 1950)

WHEN? • Effective January 1, 2018 • Mothers and fathers cannot receive the benefit until after the child is born • Do not have to use all the paid-leave at once • Employees must give notice to the employers (preferably 30days) • Employer’s insurance has 18-days to process the claim and issue a decision

STATE VS. FEDERAL PAID FAMILY LEAVE

FAMILY MEDICAL LEAVE ACT

Paid

Unpaid

One or more employees

50 or more employees

Full-day increments

Hourly increments

Cannot be used for your own serious health condition

Only for your own serious health condition

Care for child at any age

Care for child under 18 or facing mental/physical disability

ECONOMIC PRINCIPLES Paternal libertarianism (opt-out/opt-in) Costs versus the benefits Scarcity forces trade offs Future consequences More consumers in the market

EMPLOYER PROS • No direct expense for employers • Employee talent is not lost to other employers (retention) • Often costs one-fifth of a worker’s salary to be replaced • Valuable benefit to recruit new employees to the state • Improved individual productivity CONS • Small business owners have to fill-in for the employee • Increased costs to have small staff coverage or over time • Opportunity for abuse by employees

EMPLOYEES PROS • Cannot lose job • Still have access to healthcare benefits • Do not have to take all the time at once • Improve morale by reducing the financial stress CONS • Benefits favor lower wage employees • Penalizes employee by not receiving promotions or raises • Extra duties and extra shifts to other employees

CONSUMERS PROS • Increase power of purchase • Women who take paid leave about 40 percent less likely to receive public aid or food stamps • Lowers the amount of money being used for unemployment • Increases labor-force participation CONS • Potential increase costs for consumers • Chance for inconsistence customer service experience

GOING NATIONAL New York State is leading the way • California and New Jersey, which each provide six weeks off • Rhode Island, which offers four weeks of leave time • Washington D.C., which will provide eligible employees with up to eight weeks of paid leave once available in 2020.

• Offers more than federal leave, and adds consistently across states United States is far behind • E.U. countries offer a minimum of 14-week of full-paid leave • U.S. paid leave and unemployment benefits received score of 0.03 compared to 7.8 for Denmark (following chart)

Reference: Dishman, L. (2016, February 19). How U.S. Employee Benefits Compare To Europe’s. Retrieved March 06, 2018, from https://www.fastcompany.com/3056830/how-the-us-employee-benefits-compare-to-europe

ACTIVITY Your sibling recently enlisted in the U.S. Navy. After completing their training they are ready to be deployed overseas. Your brother has children that need to be cared for while he is gone on duty. You volunteer to watch his children and juggle this with your full-time job.

Does the Family Paid Leave Act cover this situation?

NO

ACTIVITY

You have a part-time job working as an accountant. After months of not feeling well, you go to the doctor and find out that you have a rare form of cancer that requires extensive treatment outside the area.

Does the Family Paid Leave Act cover this situation?

NO What other protection might you qualify for?

ACTIVITY You are the sole employee of your graphic design consulting business.

You recently found out that you and your significant other have qualified to foster a child and will be adjusting to a new family life.

Does the Family Paid Leave Act cover this situation?

YES

THANK YOU QUESTIONS?

CITATIONS Dishman, L. (2016, February 19). How U.S. Employee Benefits Compare To Europe’s. Retrieved March 06, 2018, from https://www.fastcompany.com/3056830/how-the-us-employee-benefits-compare-to-europe

Dulgerian, T. (2017, November 14). New York Paid Family Leave: employer FAQs answered. Retrieved February 26, 2018, from https://www.nixonpeabody.com/en/ideas/articles/2017/11/14/employer-faqs-on-ny-paid-family-leave Huang, G. (2018, January 17). New Paid Family Leave Rights For Employees In New York State. Retrieved February 26, 2018, from https://www.forbes.com/sites/georgenehuang/2018/01/09/new-paid-family-leave-rights-for-employees-in-new-york-state/#33a452d939e4

Icons made by Freepik from www.flaticon.com Keating, K. (2015, June 09). Family Leave in the U.S. and Europe: A Comparison. Retrieved March 06, 2018, from https://www.huffingtonpost.com/kim-keating/family-leave-in-the-us-an_b_7543298.html

Mason, J. (2018, January 01). Why New Yorkers Should Celebrate, and the Rest of Us Should Envy, Their New Paid Leave Program. Retrieved February 26, 2018, from http://www.slate.com/blogs/better_life_lab/2018/01/01/four_crucial_things_you_should_know_about_new_york_s_new_paid_leave_program.html

New York State Paid Family Leave. (2018, February 15). Retrieved February 19, 2018, from https://www.ny.gov/programs/new-york-state-paid-family-leave Rogers, K. (2017, October 27). New York set to institute most aggressive paid family leave act in the nation. Retrieved February 26, 2018, from https://www.cnbc.com/2017/10/27/new-yorks-new-aggressive-paid-family-leave-policy.html

Tucker, L. (2017, November 6). New York State Maternity Leave: Everything Expectant Parents Need to Know About the New Paid Leave Law. Retrieved February 26, 2018, from https://www.workingmother.com/New-york-maternity-leave#page-2