Businesses Minimally Affected by Paid Leave in California


Recent research shows that paid family leave does not negatively affect the workforce or businesses. With the current political debates going on, the issue of paid time off for family has emerged again.

In 2004, California was one of the first states to require employers give their employees six weeks paid time off in order to care for newborns or an ailing loved one. This act is funded by an employee payroll tax, meaning businesses do not have to pay out of pocket. Small business owners such as Adam Rochon, who co-owns Sequoia Employee Benefits and Insurance Solutions, believes the law aids small companies. He asserts that the law allows him to stay competitive and offer his company, which consists of five employees, the benefits that he normally would not be able to afford. Those protesting paid family leave believe companies should have the right to offer the benefits they see fit.

According to a study conducted by the U.S. Labor Department and headed by Ann Bartell, a Columbia Business School professor, the paid family leave did not negatively affect a business’ profitability, productivity, or morale. Rather, employees who had time to bond with their newborns and children seemed to work harder for a company that allowed them the opportunity.

Studies showed that in a decade, over 1.8 million individuals took paid maternity and paternity leave. The state paid $4.6 billion dollars, while there was no out-of-pocket cost for businesses. Paid family leave also aims for an equal workforce. Women should not be penalized for being mothers. According to Labor Secretary Thomas Perez, paid maternity leave gives women the opportunity to work, which helps grow our economy.

At Family Law Advocacy Group, we believe that both men and women should be able to spend time with their newborns without it negatively impacting their jobs. If you or a loved one has suffered from discrimination because you are a new parent, you may have grounds to take legal action. Contact our Rancho Cucamonga family law attorney today. We will help review your case and inform you of your rights.

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