The 'More Paid Leave for More Americans Act' — What's in it?

The U.S. is one of a handful of countries in the world without a national paid family leave policy. Rep. Stephanie Bice and her colleagues on the bipartisan Paid Family Leave Working Group introduced legislation this week that could change that. Here's what's in the bill.

What’s in the More Paid Leave for More Americans Act?

On Wednesday, Oklahoma Congresswoman Stephanie Bice (R-OK5), Pennsylvania Congresswoman Chrissy Houlahan (D-PA6), and the bipartisan Paid Family Leave working group that they co-chair introduced the More Paid Leave for More Americans Act. The legislation is the culmination of two years of the group’s effort to dig deep into the issue of paid family leave and chart a path toward a national paid leave policy. According to the Bipartisan Policy Center, the U.S. is the only OECD (Organization for Economic Cooperation and Development) member country – and one of just six countries in the world – without a national paid parental leave policy. 

The group issued a summary of what the bill would do if passed into law:

Establishes the “State Paid Family Leave Public-Private Partnership Grant Program”

1. This legislation establishes a competitive grant program to be run by the U.S. Department of Labor. Specifically, this would be a three-year pilot program that creates a modest incentive for states to establish their own paid family leave programs that use a public-private partnership model.
2. Eligibility: To be eligible, a state must have:
3. Enacted a state law establishing a paid leave program that:

1.      Exists in the form of a partnership between the state and a private partner, like an insurance company or benefits administrator. Such a partnership could look similar to the New Hampshire model, in which insurance premiums, paid by the employer and/or the employee, fund the benefit, and the private partner administers program benefits. It could also look similar to Colorado, which operates a public insurance system but allows employers to provide benefits to their employees outside of the insurance system, either directly or through an insurance product.

2.      Covers, as a requirement, at least the FMLA category of Birth/Adoption.

a.      State paid leave programs may also cover any/all other categories of FMLA leave on an optional basis, but may not directly pay such benefits with the federal funds provided by this legislation.

3.      Must provide at least 6 weeks of paid leave.

4.      Benefit parameters:

a.      To be eligible for a grant, a state program must provide at least a:

i. 67% wage replacement rate for individuals at or below the poverty line for a family of four ($31,200), or;

ii.50% wage replacement for individuals earning more than double the poverty line for a family of four ($62,400), up to the maximum benefit amount.

·Between these thresholds, there is a gradual phase-down of the minimum benefit amount.

iii. Maximum benefit amount is 150% of a state's average weekly wage. [MI: $2,028 / week; PA: $2,173 / week; TX: $2,310 / week; IA: $1,821 / week; LA: $1,792 / week; OK: $1,728 / week.]

1. A state must also participate in the Interstate Paid Leave Action Network (I-PLAN) to be eligible for a grant under this program.

Funding:

1. The current draft includes 9 different pay-fors that total $500.5 million.
2. The PFL PPP Act has a total cost of $265 M.
3. The I-PLAN Act has a total cost of $ 235 M.
4. Grant size:
5. Minimum grant amount: $1.5 M.
6. Maximum grant amount: $7 M.

Other provisions:

1. The "definitions" section of the bill references existing FMLA thresholds for employee eligibility and employer exclusions.
2. The bill includes language that creates an employer opt-out in instances where a state’s program includes a mandate on employer participation, so long as such employer meets or exceeds the benefit thresholds of the state program.

Oversight provisions:

1. The bill includes reporting requirement for states who receive a grant award and would require the U.S. Department of Labor to provide regular updates to Congress.

I-PLAN:

1. The text of a separate legislative initiative to establish the Interstate Paid Leave Action Network (I-PLAN) is added to this bill as Title II.
2. Participation in the PFL PPP Grant program will be contingent upon a state participating in the I-PLAN.
3. The I-PLAN will act as a federal intermediary between states that would:
4. Establish a set of best practices based on success in various states.
5. Allow for greater harmonization of benefits across the current patchwork of varying state thresholds and requirements
6. Assist with deconfliction of benefits for those who live and work in different states, or those who move to a new state.