What President Biden’s paid leave proposal means for HR teams

President Biden recently unveiled his 2025 federal budget proposal, with recommendations including a new federal family and medical leave (FMLA) program to be run by the Social Security Administration. The new program would grant up to 12 weeks of paid leave for employees experiencing major life changes including personal or family illness, a family member’s military deployment, seeking safety from domestic violence and grieving the death of a loved one.

This introduction of paid leave in the U.S. brings us closer to global standards, but we’re still playing catch up. Many countries, especially those in Europe and Asia, provide considerably more leave benefits to employees. In Moldova, for example, employees can take up to two years away from work when they have a child, and in Hungary, vacation time is increased for those with children. The U.S. is overdue for federally mandated paid leave, but with any new workplace program comes new considerations for HR leaders managing employee benefits.

FMLA considerations for HR teams

While some details about the proposed FMLA program are still unknown until passed through Congress, HR teams can begin preparing now for future changes. Here’s how:

Don’t underestimate FMLA complexity. Reading the proposed plan may seem straight forward initially, but there are many ways HR teams can be tripped up. There are many deadlines and communication forms, such as notice and certification forms, that must be submitted accurately and on time to the Department of Labor and the Social Security Administration. Employers may need to give more leave or risk fines or employee claims if FMLA is improperly administered. For instance, time to care for a new child must be taken within one year of birth or placement, and military caregiver leave must be taken within 5 years of discharge or military release. Unless employees have been through the FMLA application and approval process before, they won’t know what to expect. With impending changes, the process is likely to shift, meaning that all employees will face a level of unknown when requesting FMLA time off. This means that HR departments must be able to guide them through to create a smooth process.

If President Biden’s proposed budget is passed, it will take 10 years for the full 12 weeks of paid leave to be implemented. The first step will be three days of bereavement for all employees. The slow changes will mean HR departments must update company policies to align as the program develops. To do so, HR teams should bring their policies to a minimum standard that covers who we can expect to qualify for FMLA under the new regulations. For example, today only employees with a year of service (employers are able to determine the past year as a calendar year or rolling 12 months) are eligible. If FMLA coverage is expanded under the new proposal, newer employees and contractors may also qualify. HR teams can prepare for this expansion by writing provisions for leave coverage for all team members, regardless of tenure.

Consider implementing a standard of paid leave. For companies with global workforces, providing a minimum standard of paid leave for all employees can help HR teams stay ahead of benefits law changes. It can also help ensure a smoother transition if companies eventually need to shift their payroll policies to accommodate federal changes.

We’ve implemented a minimum standard of paid leave for our global workforce at Safeguard Global and the results have been increasingly positive. Not only do our employees feel supported with transparent and equitable policies, but it helps us ensure compliance with labor laws across all countries we operate in.

A step in the right direction

The proposed FMLA program has positive implications for workers and talent retention. It could allow employees to step away from work during urgent life or health events and come back without the stress of substantial lost pay and feel positive about their relationship with their employer. I see the biggest impact areas being in parental leave and personal safety, particularly for women in the workforce. Having the ability to pause daily job functions to care for a new child or to escape domestic violence will help women stay in the workforce, improve pay equity, and improve quality of life.

Related: The perils of parental leave and the importance of businesses taking action

While we don’t have all the information yet, HR teams can begin to prepare for FMLA changes now. Refreshing your team’s payroll, compliance and benefits practices to ensure you know who is responsible for each step can help. Organize your workflows, vendors and leave time so any gray areas can be handled as they’re introduced. If companies find the new policies are saving budgets and increasing employee loyalty, I encourage HR teams to expand benefits to keep policies rolling in the right direction.

The bottom line: companies will get out what they put into employee benefit policies. As the U.S. continues to institute progressive changes, what your HR team does to care for and support employees will come back to positively impact your company several times over.

Katherine Loranger, Chief People Officer, Safeguard Global