From the August 2009 issue of Ceridian Connection.

Fueled by the threat of pandemic flu and the state of the U.S. economy, a particular piece of legislation is causing a healthy debate among legislators, trade associations and human resource professionals -- the Healthy Families Act.

About the Healthy Families Act
The Healthy Families Act (HR 2460) would require employers with as few as 15 employees to provide paid sick leave to full- and part-time employees as a "day one" benefit. This would guarantee employees one paid hour off for each 30 hours worked, making it possible for them to earn up to seven paid sick days per year.

Employees would be entitled to claim their days when they or a child, parent, spouse or someone else close to them becomes ill, receives preventive or diagnostic treatment, or seeks help as a victim of domestic violence.

This legislation would:

• Apply to employers with 15 or more employees working 20 or more calendar workweeks in the current
  or preceding year.


• Provide up to seven days of paid sick leave for full-time employees working more than 30 hours per week; part-time employees working more than 20 hours per week receive pro rata share of paid leave.


• Prescribe the leave could be used on an hour-by-hour basis or in the smallest increment that the employer's payroll system uses to account for absences or use of leave.


• Prohibit employers from eliminating existing leave coverage upon enactment.


• Provide for a civil right of action against an employer for violations of the Act.

The Healthy Families Act is now before Congress.

The legislation in context
As Product Manager for Ceridian Leave Administration, Ronnie Bragen has a keen interest in legislation that affects the administration of Family and Medical Leave Act (FMLA), state leave laws and employer leave of absence policies. She provides some context about the progress and acceptance of "paid time off" legislation -- and offers some insight into the debate.

"Over the last several years, there has been much discussion about the need to provide employees with some sort of paid time off for family medical reasons. Unpaid, job-protected leave is in the arena of FMLA , though employers with fewer than 50 employees currently are not governed by FMLA," she says.

Bragen explains that the federal government had not taken action to address paid family leave under the previous administration. And now, a new sense of urgency has developed as employees across the nation face unprecedented economic challenges and the specter of pandemic flu.

"A number of states have moved ahead on their own," Bragen says. "To date, states that enacted paid family leave legislation have done so from a temporary-disability perspective. But the crux of the matter becomes: How will employees be paid? Who will actually be paying them? In New Jersey, paid leave is funded by an employee payroll tax -- and employees needing leave apply to the state for wage replacement. What's different about the Healthy Families Act is that the government is talking about mandating that employers pay for the time off. That concept has generated a healthy response from employers and employees alike."

SHRM raises concern
One of the biggest issues is the "safe harbor" for employers' current paid time-off policies. One area of question is how to qualify an existing paid leave policy under the new law. The Society for Human Resource Management (SHRM) generally opposes any form of government mandate on employee benefits or leave requirements, believing that employers, not the government, are best situated to know the benefit preferences of their employees. In a recent position paper, SHRM stated, "Any government initiative that removes or restricts an employer's flexibility in shaping such leave policies often creates undue hardships for both employees and employers."

"Certainly, this legislation is controversial for many. This is about the government mandating that an employer must provide paid sick time -- and how. And to whom," Bragen says.

More documents to file, more timelines to meet
The proposed Healthy Families Act includes provisions similar to FMLA in that employers would be entitled to request medical certification if an employee was out for more than a certain number of days. "Under FMLA an employer can request proof -- certification that verifies and proves qualification under FMLA," Bragen explains. "The Healthy Families Act would impose similar administrative standards on employers, who struggle already with FMLA administration. FMLA has rules for employee notice, employer notice and responses. There are required timelines and plenty of documents to manage. And now, with Healthy Families, it appears there will be even more."

Because the new legislation applies to employers with as few as 15 employees, it will affect very small organizations -- those that may not currently provide sick time. "This legislation applies more broadly than FMLA and raises questions. Qualifying reasons, such as domestic violence, are not currently covered under FMLA; employers will need to be prepared to administer leave requests about a highly sensitive issue," Bragen points out. "And if the government takes a broader definition of who constitutes a family member, will domestic partners be included? Under FMLA right now, domestic partners are not covered."

Here comes change: Take action to prepare
The Healthy Families Act will break new ground for employers and employees. The legislation, in its current or an altered form, is likely to pass. Bragen counsels that employers would be wise to begin thinking about how the Act could affect their organization and how to plan for it.

Want help with FMLA and the Healthy Families Act? Ceridian Leave Administration reduces administrative overhead, takes the worry out of compliance and is surprisingly cost effective. Small organizations look to Ceridian for strong, affordable HR Compliance solutions that provide the information you need.