3 trends making leave management more complex

HR managers in New York state faced new responsibilities — and challenges — in 2018 with the implementation of legislation that expanded more generous paid family leave policies. With Massachusetts and Washington state being added to the fold in 2019, the three states' experiences are a preview of more challenges expected this year as paid family leave grows in popularity, and states and employers move to provide additional benefits for employees in an increasingly competitive talent market.

While those three states' programs vary in the length of paid leave each offers, national employers like Microsoft are pushing paid leaves to the forefront of employee benefits issues to tackle. Now, with the midterm elections in the rearview mirror, it's likely that we'll see more changes to paid family leave policies at the state and federal levels in the coming year.

As an HR manager, understanding the following national trends and local changes surrounding paid family leave will help you better assist employees in navigating future policies and complex legislation.

1. Political power shifts at the state level

Democratic or progressive influence increased in six states with prior proposed paid family leave legislation:

Hawaii already has statutory disability insurance, but a bill signed in 2018 appropriated funds for a study to evaluate other states' paid leave programs, impacts and costs — the results of which are due to the legislature in September. Prospects for final legislation look good.
Colorado flipped the balance in its state Senate, creating a Democratic trifecta, improving prospects for new paid family leave legislation.
Due to the new three-fifths super-majority in the Oregon Senate and House, advocates have high hopes that 2019 is the year that paid family leave is enacted in Oregon.
Democrats won control of both branches of the legislature in New Hampshire and, together with current Republican Gov. Chris Sununu, are likely to work toward creating a new paid family leave system during this term. A similar proposed bill has already been passed in the Senate.
Missouri Democrats have sponsored a bill for the 2019 legislative session that includes the Missouri Earned Family and Medical Leave Act. If signed, the act would still have to win state voters' approval as a referendum on the November 2020 election ballot.
Vermont's Democrats and progressives won a super-majority of 102 seats in the House of Representatives, enabling them to avoid a veto from the state's Republican governor and push a paid family leave bill over the finish line in 2019.

2. The issue is gaining prominence at the federal level

Both sides of the aisle sponsored paid family leave bills in 2018. But now that Democrats control the House, a reinvigorated FAMILY Act is set to be re-proposed and moved forward. The last proposal of this act was in 2017 and sponsored by Sen. Kirsten Gillibrand, who intends to run for president. The bill proposes 12 weeks of paid leave for family and personal medical needs. It also calls for funding via a new 0.4 percent payroll tax, split between employers and employees.

Sen. Marco Rubio of Florida and Rep. Ann Wagner of Missouri have indicated they plan to reintroduce a Republican-sponsored bill. Numerous other Democratic presidential candidates in addition to Gillibrand are also expected to make paid leave a prominent part of their campaign platforms, so the issue looks likely to see continued bipartisan attention.

3. More employers are starting to offer benefits

Companies may not go as far as Microsoft — which requires its vendor partners to offer a minimum of 12 weeks paid leave — but employers will likely begin to recognize the popularity of paid leave policies. As a result, they will either start to face pressure from employees or will be forced to add them to benefits packages to attract and retain highly skilled workers in a competitive job market.

Keeping track of individual state legislation and paying attention to national discourse surrounding parental and medical leave trends will help tremendously as paid family leave becomes increasingly complex. State legislation undoubtedly serves as a framework for future employers and politicians looking to provide paid family leave in their respective districts.

The result: a complex administrative nightmare for HR managers

While policymakers are increasingly understanding and responding to the need for paid family leave, fragmented legislation will make the process of implementing paid leaves difficult and time-consuming for HR managers and add a layer of complexity not seen since FMLA. It will fall to HR managers to sort through the various paid family leave policies that multistate employers face.

Another particularly thorny detail to sort out is how to handle benefits for employees in adjacent states, including different payroll deductions and requirements per state. Outsourcing help — as needed — to a trusted disability carrier or vendor partner when digesting a new policy may free up the valuable time required to study and implement new or revised programs.

The trend is clear: leave policies will only become more complex in 2019 and beyond. As an HR manager, your best front-line defense is a thorough understanding of the local and national trends surrounding paid leaves. Your company and employees will look to you to make sense of where the legislation is moving — and, when the time comes, they may seek your insights when putting a revised or new paid leave program into action. Getting a jump-start on the larger conversation, paying attention and outsourcing as needed are your best tactics for success in 2019 and beyond.

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Breanna Scott is product and service management director with The Standard and guides the strategic development on its product portfolio, including market analysis and product positioning. She leads the group insurance product team responsible for creating and refining The Standard's employee benefits, and voluntary product and service offerings.

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