Reports break down the benefits of paid family and medical leave programs

BY KYLE DAVIDSON, MICHIGAN ADVANCE

MICHIGAN—With the Michigan Department of Labor and Economic Opportunity (LEO)  releasing two reports outlining the potential benefits of a state paid leave program, members of the MI Paid Leave for All Coalition are continuing to press lawmakers to move forward with bills establishing family and medical leave programs.

In her August 2023 “What’s Next” Address, Michigan Gov. Gretchen Whitmer identified paid family and medical leave as one of her legislative priorities, and doubled down on her support for the policy while speaking at the Moms First Summit in New York, according to a report from Bridge Michigan.

State Sen. Erika Geiss (D-Taylor) and state Rep. Helena Scott (D-Detroit) in May 2023 introduced policies — Senate Bills 332 and 333 and House Bills 4574 and 4575 — that would provide Michigan workers with up to 15 weeks of paid leave, funded for through contributions by both employers and employees. However, the legislation has sat dormant, with neither set of bills receiving a hearing in their respective committees in the Democratic-controlled Legislature.

Next term, Republicans will have a majority in the House.

The release of these two most recent reports in tandem with an actuarial analysis commissioned by LEO and released in July make a strong case for taking action on these policies, said Monique Stanton, president and CEO of the Michigan League for Public Policy, a nonprofit focused on advocating for policy solutions to policy solutions to undo racial and economic inequities.

“[The reports] show that paid leave is not only affordable and sustainable, but also the right thing to do for the people who call Michigan home and the smart thing to do for our state,” Stanton said in a statement.

The first report, published by Cleveland State University Professor Patricia Stoddard Dare, examines the health and business outcomes of paid family medical leave policies. In a review of existing research on paid family medical leave, maternity leave, paternity leave and paid health-related leave, Stoddard Dare listed out the variety of benefits these policies bring.

This includes decreasing poverty and reliance on social welfare, having a positive or neutral effect on both employee’s future earnings and U.S. business’s profitability as well as a positive to neutral effect on employee morale and a reduction in employee turnover.

The review also pointed to a 20% reduction in infant death, a 7% reduction in premature birth, a 47% decrease in the re-hospitalization of newborns, a 51% reduction in re-hospitalization of mothers for 21 months after childbirth, increased on-time childhood vaccination, double the duration of breastfeeding and a reduction in postpartum depression when leaves least up to six months.

Another review, published by Poverty Solutions at the University of Michigan, notes that paid family and medical leave policies serves as a safeguard for the health and economic wellbeing of workers and their families.

Alongside benefits to workers and employers, the U of M report also noted that paid leave policies — including parental, family caregiving, and medical leave —could address gender and racial inequities, particularly benefiting women of color who bear a disproportionate share of caregiving responsibilities.

With women leaving their children to care for children more commonly than men, parental leave policies help caregivers maintain employment over the long-term, and addresses economic inequities across gender, the review notes.

It also pointed to a study of parental leave policies across 200 countries which found including paid paternity leave as part of a parental leave policy contributed to a more equitable division of caregiving responsibilities.

Additionally, the review notes households of color tend to experience more caregiving responsibilities than white households often creating challenges in balancing caregiving with paid work duties. Workers of color are also more likely to work in jobs that are not bound by the Family and Medical Leave Act leave act’s requirement that provides eligible workers with 12 weeks of unpaid leave without risk of losing their job or health benefits.

As such, comprehensive paid family and medical leave policies would grant all families, but particularly families of color, with the critical time and financial stability to care for their loved ones.

The U of M review also examined the business impact of state-mandated leave policies pointing to a survey where 90% of employers in California reported “no noticeable or a positive effect on profitability, turnover, and morale” as a result of the state’s paid leave policy. It also pointed to another report in which 90% or more of California businesses experienced a positive or neutral effect on productivity and business morale, and no increased costs resulting from the policy.

“These reports confirm what we already knew: that a paid family and medical leave program would be transformational for workers, families and businesses here in Michigan,” said Danielle Atkinson, the national executive director and founder of Mothering Justice, a national advocacy group focused on supporting mothers of color.

“Providing our state’s workers with the time away that they need for critical caregiving responsibilities will make Michigan families, businesses and our economy stronger as a whole. The time is now for Michigan to join the 13 states that have already passed paid family and medical leave laws,” Atkinson said in a statement.

Earlier this year, the Michigan Supreme Court determined that the Legislature subverted the rights of citizens in gutting a ballot initiative to guarantee workers paid sick leave by adopting and amending the policy, prompting a lawsuit from Mothering Justice.

By Feb. 21, 2025, the Earned Sick Time Act will require all Michigan employers to offer 72 hours of sick leave. While companies with fewer than 10 employees must offer up to 40 hours of paid sick leave, employers with 10 or more employees must offer a full 72 hours of paid sick leave.

Following the decision, business groups have cautioned this new policy would force employers to make drastic changes to their sick time policies, while speaking out against the lack of exemptions for businesses based on the type of employees or size of the businesses.

While state Sen. Thomas Albert (R-Lowell) has introduced legislation to keep the state’s current paid leave exemption for businesses with less than 50 employees, state Rep. Graham Filler (R-St. Johns) is working with businesses to finalize details on a bill to address their concerns with the paid leave changes while maintaining the spirit of the Earned Sick Time Act.

READ MORE: Paid family leave efforts sit stagnant as lawmakers cross off Whitmer’s priorities

This coverage was republished from Michigan Advance pursuant to a Creative Commons license.