Rob Panos: A pragmatic perspective on paid family leave

In early May, my wife and I welcomed a baby boy—our fourth child. As all parents can attest, the first few weeks with a new child are a whirlwind, whether it’s your first or your fourth.

I was fortunate to have two weeks of paid time off from my employer following the birth. Those two weeks were filled with the usual chores of running kids to school, laundry and prepping meals but also prized moments like a midmorning coffee date with my wife (thanks to grandparents) and afternoon naps with our little guy. I’m so grateful for those two weeks—and my wife doubly so. It helped me focus on the needs of our family and gave her the support and encouragement she needed going into summer with four kids at home.

Many of my friends have paid-family-leave benefits through their employer, but this isn’t the case for most Americans. Only 23% of workers and 9% of low-wage workers have access to paid family leave after the birth or adoption of a child.

It’s another unfortunate example of economic disparity in the United States today. High-wage earners access robust employer-sponsored benefits, but many low- and moderate-income workers, particularly those in the service industry, are lucky to get paid leave of any kind. This results in lower job retention (particularly for mothers), weakened marriage and family bonds, and lifelong impacts on child development—all affecting economic productivity and societal well-being.

As a conservative, I don’t believe government should overregulate business activity, nor do I think employers and taxpayers should have to bear high costs for government-mandated paid-leave policies. But I’m fearful that is where we will end up without stronger leadership from the business community on this topic and related policy issues like medical leave and child care support.

Consider Minnesota, which just passed a family- and medical-leave policy that has a startup cost of $1.7 billion, with only 40% of that funded by a state budget surplus. Employers and their employees will likely be covering the difference through increased payroll taxes.

Indiana businesses and policymakers can help avoid a similar scenario by engaging in a thoughtful, solutions-oriented conversation. Seventy-one percent of registered voters support paid leave for parents, crossing party, gender and ideological lines (65% of conservatives, 68% of moderates, 83% of liberals), which means paid-family-leave legislation might be coming soon.

Bipartisan legislators in Congress have advanced creative ideas with limited fiscal impact, such as allowing parents to advance funding from their child tax credit or providing additional tax cuts to employers who voluntarily offer paid family leave to employees. Given the economic and social benefits of paid family leave, imaginative solutions like these are a smart investment.

If done right, paid family leave is good for business. It keeps parents connected to the workforce, levels the playing field for businesses of all sizes and leads to a healthier economy by supporting families and increasing birth rates.

To help guide the conversation, Sagamore Institute created “Paid Leave in Indiana,” a web page that describes the economic advantages of responsible paid-family-leave legislation with supporting research and perspectives. We encourage lawmakers and business advocacy groups from both sides of the aisle to come to the table around this important issue.•

__________

Panos is chief of staff at Indianapolis-based Sagamore Institute.

.