Too many American workers currently do not have paid leave benefits. But several promising developments advanced by members of the U.S. Congress have raised the prospects for a breakthrough.
America’s life insurers firmly believe that every worker should be able to take time off to care for themselves or an ailing family member without suffering financially. Life insurance companies have been delivering paid leave benefits to millions of American workers for decades through short-term disability income insurance. ACLI strongly supports bipartisan efforts that build on this existing framework to expand paid leave coverage, including a proposal championed by Senators Deb Fischer (R-NE) and Angus King (I-ME) that updates and enhances a tax credit offered to businesses who establish a paid leave program.
In addition, in the House of Representatives, the Bipartisan House Working Group on Paid Leave co-chaired by Reps. Stephanie Bice (R-OK) and Chrissy Houlahan (D-PA) last month released two substantive discussion drafts on paid leave legislation.
As momentum builds toward federal action, it’s important that any legislative proposals build on the successful private sector paid-leave framework led by the life insurance industry. Over many decades, life insurers have developed deep expertise in the administrative and compliance needs of employers, whether working with existing Family and Medical Leave Act requirements, in states with mandatory PFML programs, or in states where a private paid family leave option is allowed.
The current disability (DI) income infrastructure should form the foundation for a public/private partnership to expand access by adding paid family leave (PFL) benefits. Federal tax credits will help support employers who want to offer these benefits while establishing standards for eligibility for credits and subsidies. Federal block grants to states can help support expansion of availability of DI and PFL to reach self-employed and non-traditional workers including part-time and seasonal employees.
No one should have to choose between a paycheck and caring for themselves or a loved one. America’s life insurers are eager to work with all interested members of the 119th Congress on this issue that is vitally important to so many families.
Lauryl Dodson is Vice President, Federal Relations for Financial Income Security and Diversity & Inclusion for the American Council of Life Insurers (ACLI). Prior to joining ACLI in January 2020, she led government affairs strategy for the priorities of the pharmaceutical industry.
