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Leaves That Pay: Employer And Worker Experiences With Paid Family Leave In California
The Center for Economic and Policy Research published a study in January 2011 detailing worker and employer experiences with California's Paid Family Leave (PFL) program-the nation's first comprehensive paid leave program passed into law in September 2002. The program is structured as an insurance benefit, fully funded by employees, and enables most working Californians to receive up to six weeks of partial wage replacement when they need to take time off from work to care for a newborn child or an ill family member.
According to Eileen Appelbaum, one of the authors of the report, "The experience of California employers with the state's Paid Family Leave program has disproved opponents' claims that the program would be a 'job killer.' In our survey of a random sample of 253 employers, almost all employers reported that the program had positive or neutral effects on productivity, profitability, turnover and morale."
California's Paid Family Leave program may offer an example as to how other states can implement this type of program in a way that works for businesses to help their employees better manage the dual demands of work and life.
Among the study's key findings for employers are:
- 91 percent of employers found that the PFL program had a positive or neutral effect on profitability and performance, and 96 percent felt that it had the same effect on turnover;
- 91 percent of employers reported no instances of abuse;
- Employers reported enjoying a 9 percent cost-savings due to the program;
- 60 percent of employers reported cost-savings due to coordinating their own benefits with the state PFL program.
Read the full report
Read "Paid Family Leave Pays Off in California," Harvard Business Review, January 19, 2011.
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