[Congressional Record Volume 153, Number 101 (Thursday, June 21, 2007)]
[Senate]
[Pages S8241-S8242]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DODD (for himself and Mr. Stevens):
  S. 1681. A bill to provide for a paid family and medical leave 
insurance program, and for other purposes; to the Committee on Finance.
  Mr. DODD. Mr. President, I am pleased to introduce the Family Leave 
Insurance Act of 2007 and especially pleased to be joined by my 
colleague Senator Stevens. This bill, which would provide 8 weeks of 
paid benefits to workers who take time off for reasons allowed under 
the Family and Medical Leave Act, FMLA, is an important step in 
continuing to help our Nation's workers to be both productive employees 
and responsible family members.
  Before the FMLA, workers had no guarantee that their jobs would still 
be there if they took time off to care for loved ones or recover from 
illness themselves. Millions of Americans were forced into a 
challenging dilemma: care for their families, or provide for them.
  That is why I worked to create the FMLA in 1985, and that is why I 
fought for its passage through 7 years of obstruction and two 
presidential vetoes, pointing out that its denial of guaranteed leave 
put America virtually alone among nations, industrialized or otherwise.
  Finally, on February 5, 1993, the Family and Medical Leave Act was 
signed into law. Under its protection, eligible workers receive 12 
weeks of leave every year, so that they can watch over a newborn or 
adopted baby, or help a parent through an illness, or get better 
themselves, knowing that their job will be there when they return. To 
date, more than 50 million Americans have taken that opportunity. The 
FMLA isn't just good for American workers, it is good for American 
business. Ninety percent of employers have reported that the FMLA had a 
neutral or positive effect on profits.
  Today, the idea of guaranteed leave seems obvious; but now, it is 
time to take another step in making that hard-won leave a possibility 
for even more Americans. In the 21st century, working families should 
not have to give up the leave they earned because they cannot afford 
it, they deserve paid leave.
  Why do we offer nothing, when the European standard is 14 paid weeks? 
Why are we one of only four countries in the world to deny paid 
maternity leave, leaving us in the company of Swaziland, Liberia, and 
Papua New Guinea?
  For every worker who can weather a day without pay, three more can't 
afford the loss. To these workers, unpaid leave is a hollow promise, an 
impossible choice between the family they love and the job they need.
  I believe it is a choice that no American should ever again be forced 
to make. When Congress passed and President Clinton signed the FMLA, we 
affirmed that health and family should never have to suffer because of 
the demands of work. I fail to see why that right should only be 
afforded to Americans in a certain income bracket.
  With the introduction of the Family Leave Insurance Act, we take a 
huge step toward making family leave a possibility for all Americans. 
Its 8 weeks of paid leave per year will apply to employees who need 
time off for any of the reasons included in the FMLA: birth of a child; 
placement of an adopted or foster child; the care for a child, parent, 
or spouse with a serious medical condition; or recovery from a serious 
personal medical condition. Benefits will be tiered on the basis of 
wages, with the tiers themselves indexed to inflation. This structure 
will provide the greatest benefit to those with the lowest salaries. 
And workers who are covered by the FMLA will retain their health 
insurance and will be guaranteed a return to their job, or a comparable 
position, on their return.
  The act creates a new Family Leave Insurance Fund into which premiums 
are paid, to finance benefit payments, allowing stakeholders to pool 
risk and lower costs, and funded through small, shared premiums. Those 
costs will be shared by employees and employers; the Federal Government 
will pay for administrative costs. Participation will be mandatory for 
all businesses with 50 employees or more; those with fewer employees 
can choose to participate and receive a discount on premium payments. 
To reduce administrative burdens for employers and employees, employers 
will pay leave benefits to employees through their regular payroll, 
with prompt reimbursement from the Family Leave Insurance Fund.
  We know that many employers, both large and small, offer very 
generous leave policies, exemplifying best business practices. Through 
this legislation, we seek to support companies who offer paid leave so 
they continue to do so, and to create an incentive for smaller 
companies to offer paid leave. A provision in the bill allows employers 
to maintain their own paid leave plan, if it is certified to be 
equivalent or better to the plan in this legislation.
  Our bill will also allow States flexibility in maintaining their 
existing programs. Several States already have systems to provide paid 
family and medical leave, and several more have legislation pending to 
create such systems. In recent years, more than 25 States have 
introduced legislation to create paid leave programs. The landscape in 
the States is changing quickly on policies for working families and 
there are complex issues around the interaction between this 
legislation, State programs and employers within States. We look 
forward to collaborating with States so they can maintain maximum 
flexibility, and provide the best leave policy, as the bill moves 
forward.
  As the FMLA has demonstrated so strongly, family leave benefits both 
workers and businesses, and that is certainly the case for paid family 
leave. Paid leave cuts down on employee turnover and the high costs of 
training replacements; it has been shown to raise morale and 
productivity; and it levels the playing field by allowing small 
businesses to adopt a benefit that many of their larger competitors 
have been offering for years.
  Our changing workforce demonstrates the strong need for paid family 
and medical leave. Almost 80 percent of the workforce is made up of

[[Page S8242]]

dual earner couples, who struggle to find time to care for their sick 
children or their own illnesses. In addition, approximately 40 percent 
of the workforce will be caring for older parents by 2010. For these 
and many other reasons, this bill is the right policy.
  The FMLA established the principle, and now the Family Leave 
Insurance Act puts it into practice and into reach for more Americans. 
Its passage will bring America closer to the world's standards, help 
our businesses, and protect our workforce. In the lives of millions of 
Americans, it will help reduce the dilemma of balancing work and 
family. Let us continue to work together: Government, business and 
employees need to continue this conversation and improve our policies 
for working families and individual employees who need paid leave. I 
strongly urge my colleagues to support this bill.
  Mr. STEVENS. Mr. President, earlier today, Senator Dodd and I 
introduced the Family Leave Insurance Act of 2007, which builds upon 
important protections established by the Family and Medical Leave Act, 
FMLA, of 1993.
  Our legislation would provide 8 weeks of paid benefits to private and 
Federal employees who take leave for reasons permitted by the FMLA. 
These include a serious health condition; care for a critically ill 
child, spouse, or parent; and the birth or adoption of a child.
  Benefits would be provided to workers based on their annual income 
level. As an example, those earning less than $20,000 per year would 
receive 100 percent of their benefits, while those earning $60,000 to 
$97,000 would receive 40 percent. This scaled approach has two 
advantages: it will keep program costs low, and offer the greatest help 
to those who need it most.
  In the past, many have expressed apprehension over the costs 
associated with family and medical leave. These concerns are valid, and 
steps must be taken to ensure neither employees nor employers are 
burdened by this or any similar program.
  As introduced, this insurance fund would be financed by employees, 
employers, and the Federal Government. Employees would contribute 0.2 
percent of their earnings, employers would match this percentage, and 
the Federal Government would pay any administrative expenses not 
covered by those payments. In truth, these costs are minimal for all 
involved. A worker who receives a $1,000 paycheck would disburse just 
$2 to receive full coverage.
  While my support for this bill is not absolute, it does address an 
important shortcoming of the FMLA: employees who need leave often do 
not take time off because they simply cannot afford to do so. Senator 
Dodd has rightly described this as a terrible choice for individuals--
one which forces a decision between ``the job they need and the family 
they love.'' Those of us in the Senate must do everything we can to 
help hard-working American families, and this bill represents a 
significant first step in those efforts.
  As the father of six children, I deeply understand the challenges 
families face following childbirth, in times of sickness, and when 
loved ones fall ill. In Alaska, the majority of parents hold full-time 
jobs outside the home, which often makes this pressure even more 
intense.
  I commend Senator Dodd for his continued leadership on this issue, 
and look forward to working with my Senate colleagues and leaders in 
the business community to improve this bill as it moves through the 
legislative process.

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