An amended family leave bill that exempts some small businesses was praised by its supporters and criticized by a small business group.
The Healthy Families Act passed both the state House and Senate on Thursday.
According to sponsors, the bill would create a family and medical trust fund in Delaware modeled after similar programs already passed in nine other states and the District of Columbia.
The program would be funded through payroll contributions that total less than 1% of an employee’s weekly pay and is split evenly between the employee and employer.
Polls indicate that paid family leave is popular with Americans from both political parties. Even so, national paid family leave legislation stalled in Congress. North Dakota went a step further and banned municipalities from offering paid family leave.
Under the bill, businesses with fewer than 25 workers would not be required to participate in the medical and family caregiving component of the program. Businesses with fewer than 10 workers would not be required to participate in parental leave but may opt in. Businesses with comparable benefits would be able to opt out of the program in whole or in part.
NFIB weighs in
The changes came after conversations with business groups offered their thoughts.
Changes in the bill fell short, according to the National Federation of Independent Business.
“The small business community appreciates the thoughtful changes made to the bill. But at the end of the day, our members are still concerned with its price tag and the lack of flexibility. Small businesses are unique not just in their size but how each one operates. This program assumes an employee is replaceable for three months out of the year. That’s just not the case for Delaware’s small businesses,” said Mike O’Halloran, state director for Delaware NFIB.
AARP Delaware had a different view after pushing hard for provisions that would provide paid leave for caregivers of family members.
“Taking mom to the doctor shouldn’t cost you your job,” George Meldrum, State President of AARP Delaware, which serves more than 189,000 members ages 50 and older in the state. “Family caregivers save Delawareans money by keeping their loved ones out of taxpayer-funded nursing homes and preventing costly hospitalizations. It’s time Delaware stepped up to the plate and delivered this common-sense support for those caregivers who also work full or part-time jobs.”
Unpaid family caregivers in Delaware contribute more than 108 million hours of unpaid care each year, according to AARP.
AARP a strong supporter
“Paid family leave also benefits employers because it increases employee loyalty and retention – which often saves an employer money by avoiding separation costs as well as the costs of recruiting, hiring and training new workers,” Meldrum added.
Gov. John Carney, who will sign the bill, sees the legislation as a plus for businesses working to attract and retain employees.
“As I’ve said before, we should do everything we can to support businesses and the employees who work there. Younger workers aren’t just looking for a job; they’re looking for a way of life. It’s the right thing to do, and it will help attract a talented workforce to live, work, and raise their families in Delaware,” Carney stated in a social media post.
