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Biden’s 2025 budget includes 12-week paid family leave

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Business Practices | Legal
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President Joe Biden reaffirmed his support for a 12-week paid family and medical leave plan in his 2025 budget proposal released last month.

“Look, it’s past time America caught up with the rest of the world on paid leave,” Biden said during a speech April 9 about caregiving. “And, folks, all this helps families, and it grows the economy. It grows the economy. And we can afford to do it. To put [it] another way, we can’t afford not to do it.” 

The proposal aims to allow 12 weeks paid time off for those facing certain life challenges. It also calls for jobs to provide seven protected paid sick days each year. 

Circumstances that could trigger the paid time off include: 

    • Caring for a new child 
    • Caring for a sick family member
    • Healing from serious illness
    • Preparing for a family member’s military deployment 
    • Finding safety from domestic violence, sexual assault, or stalking 

Biden’s plan didn’t provide specific logistics of implement, which makes it difficult to understand the financial impact it could have on a small business.

Currently, the U.S. does not require paid family or medical leave. Women are allowed time off to take care of a new child but it does not have to be paid.

According to a Forbes 2023 article, only 17% of companies offered paid parental leave in 2018, and 89% offered unpaid leave. 

New York Times reported Biden has continuously made promises, such as paid leave, since coming into office and is unlikely to follow through with them this year. 

“For Mr. Biden, it is an aspirational document meant to lay out his priorities if he were re-elected,” The New York Times says. “In the speech, Mr. Biden excoriated Republicans, who have opposed many of the proposals as too costly at a time when the nation has been struggling with mounting debt.”

While Biden might not get his paid leave, there has been a bipartisan effort to create a plan for paid family leave through a working group formed in early 2023. 

The Washington Post reported the group released a framework in January that includes a pilot program to help states build their own paid leave systems. The article says the group plans to continue to work on the subject and seek opinions from businesses and advocates. 

According to the Washington Post article, 13 states already have mandatory paid leave laws, most giving workers at least 12 weeks off for a new child, sick family member, health problems, and family member’s military deployment. 

The bipartisan working group presented multiple ways the federal government could boost state programs, the article says. This includes grants and tax credits. 

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Photo courtesy of lucky-photographer/iStock

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