Home Editor's Choice R.I. business groups worry about effects of extending paid family leave

R.I. business groups worry about effects of extending paid family leave

By

Katie Castellani

-

02/23/2024

LEGISLATION has been filed in both chambers of the General Assembly that would extend paid family leave from six to 12 weeks, but some business groups have raised concerns. PBN FILE PHOTO/MICHAEL SALERNO

While there is widespread support for bills in the General Assembly that would double the amount of paid family leave offered in Rhode Island from six to 12 weeks, some business groups have raised concerns about how the measure would affect businesses already struggling to fill staffing shortages. Companion bills sponsored by Senate Majority Whip,

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While there is widespread support for bills in the General Assembly that would double the amount of paid family leave offered in Rhode Island from six to 12 weeks, some business groups have raised concerns about how the measure would affect businesses already struggling to fill staffing shortages. Companion bills sponsored by Senate Majority Whip, Valarie Lawson, D-East Providence and Rep. Joshua Giraldo, D-Central Falls, would not only increase the state’s temporary caregiver insurance program to a maximum of 12 weeks but would also add coverage for those caring for a sibling and grandchild as well as expand the definition of “care recipient’ to include those the employee is responsible for “... providing or arranging health or safety related care…” and increase dependent’s weekly allowances from $10 to $20 or 7% benefit rate, whichever is greater. The program would be funded with employee contributions and both the Senate and House bills are in committee. In January 2023, the state’s temporary caregiver insurance benefits were extended from five to six weeks. Last year, Lawson sponsored legislation to extend the paid leave to 12 weeks. It passed the Senate but didn’t make it out of the House. This year, she remains optimistic because it has been elevated to a Senate priority and has received support from several organizations such as the Women’s Fund of Rhode Island, the Rhode Island Black Business Association and the R.I. Department of Labor and Training. “I think it’s good public policy and that’s why there’s increased support around it,” Lawson said. “This is a benefit people deserve and, in the end, we all benefit when people have the ability to take care of their family.” Angela McCalla, policy and advocacy program director with the Women's Fund of Rhode Island, said gendered caregiving responsibilities have persisted and the state’s aging population has increased, making paid family leave an important tool for supporting the economic and physical health of employees tasked with juggling work and caregiving responsibilities. “When we care for our community and give people the tools they need, Rhode Islanders will also be better able to contribute to the economy,” McCalla said, adding that Rhode Island was a leader when it enacted the temporary caregiver insurance program in 2013 and has now fallen behind several states including Massachusetts and Connecticut which offer 12 weeks of paid family leave. But others have raised concerns about how the expanding employees’ ability to leave work and receive financial benefits would affect businesses already grappling with staffing shortages. “I’ve talked to a lot of our members and they are very concerned about the impact this will have on their business…You can't run a company without people working,” said David M. Chenevert, executive director of the Rhode Island Manufacturers Association. Rhode Island state law allows employees to take up to 13 weeks in any two calendar years of unpaid, job-protected leave and federal law offers 12 weeks in a 12-month period. This means employees could take a total of 25 weeks in two years of unpaid, job-protected leave. RIMA members are overall comfortable with the state’s existing law allowing six weeks of paid leave, Chenevert said. But continuing to extend it could be detrimental to businesses. “There's got to be a line drawn at some point where they got to consider the fact that businesses are going to be hurt by this,” said Chenevert. In terms of the unpaid and job-protected leave already allowed under state and federal law, Giraldo says employees will likely take this time off if they need it. The legislation is simply ensuring that employees are supported during that time. He also said neighboring states such as Massachusetts and Connecticut already offer 12 weeks of paid leave and it doesn’t appear to have weakening companies in those states. The Northern Rhode Island Chamber of Commerce submitted a letter to the House Labor Committee on Feb. 14 that noted that employers are already struggling to get enough help. And a letter from the Rhode Island Business Coalition, which includes groups such as RIMA, the Rhode Island Bankers Association and the Rhode Island Hospitality Association, expressed worries about expanding the definition of “care recipient.” “While we empathize with individuals who are facing family challenges, we cannot forget that allowing those individuals to leave the workplace results in challenges for co-workers and business owners,” representatives said in the letter. The House bill “goes too far by adding anyone the employee wishes to call a care recipient. It will be very difficult to discern who is truly a caregiver and who is looking for a partially paid vacation.” Opponents of the bill also raised concerns about the cost as doubling paid leave would be expensive and they say it's hard to fully understand the full financial effect of the measure. Rhode Island Business Coalition did not respond to PBN’s requests for comment. A representative of the Rhode Island Small Business Coalition said the group is seeking more information about the legislation before taking a stance on the issue. Lisa Ranglin, CEO and president of the Rhode Island Black Business Association, said extending the amount of paid leave may actually help businesses reduce staffing challenges and turnover because employees will feel supported and be more willing to stay with a company for an extended period of time. Also, businesses concerned about filling open positions should consider cross-training and other strategies to help fill positions when employees take paid leave, she said. “If workers are getting the benefits, the support, work-life balance, that protects them as an individual so they can care for their family. You're going to get a colleague that is more likely to give a company 150%,” Ranglin said. “There's a whole strategy around planning for vacation, people should not be forced to work if they have a sick child, or they have a loved one that they need to care for.”