As the conversation continues in Allegheny County around Paid Parental Leave, Trying Together reiterates its support for a county-wide, mandated paid parental leave policy of 18 weeks for birth, foster, and adoptive parents. We believe a true continuum of care begins with paid parental leave and continues with the availability of high-quality infant child care.
As an early childhood nonprofit, we also recognize the impact on the child care sector and urge the Allegheny County Board of Health and the County to review and consider recommendations for a paid leave policy that supports the realities of child care programs.
What is Paid Parental Leave?
Paid Parental Leave is compensated time away from work for parents to bond with a newborn, newly-adopted, or newly-fostered child. This includes paternity and maternity leave.
Paid Parental Leave is not a partisan policy. A recent article by Public Source highlighted just how far behind the United States is on this issue. Paid parental leave is mandated in more than 180 countries, including all 55 high-income countries. About a quarter of all countries offer 18 weeks or more and more than half of all wealthy countries do.
The World Policy Center created a global map to demonstrate which countries mandate paid parental leave.
In its article, Public Source notes that across the United States, support for paid parental leave continues to gain traction as American families and employers realize what other high-income countries have already confirmed: the economic, health, and social benefits of paid family leave are good for families and good for business.
Paid Parental Leave is Good for Families
Parents are children’s first and most important teachers. The first few months of bonding with a new baby following a birth, adoption, or foster placement are essential to the health and wellness of the child and parents. This wellness is not just nice to have – it translates to broader health, economic, and societal outcomes.
It provides mothers the essential time required for physical recovery and healing following labor and delivery, and in some cases major abdominal surgery. Research shows a decrease in maternal and infant mortality and more time off is linked to longer breastfeeding periods, which strengthen a child’s immune system. Furthermore, access to leave is a proven intervention for protecting the mental health of mothers during the postpartum period. In the case of foster placement or adoption, paid parental leave offers additional mental health benefits with time for children to bond and develop trust with new parents.
The financial aspects of growing a family should not create additional strain and stress during one of the most transformative milestones in life. The establishment of paid parental leave would ensure no parent has to choose between a medical appointment or a missed paycheck, and that they can be present during the most formative weeks without the threat of financial ruin.
Paid Parental Leave is Good for Businesses Of All Sizes
A National Bureau on Economic Research report shows that every $1,000 invested in paid parental leave produces an estimated $7,275 to $29,406 in net social benefits (such as immediate health outcomes to babies and mothers and future savings from boosted earnings and tax contributions), and that providing paid parental leave results in higher workforce participation, improved health outcomes, and increased lifetime earnings. Paid parental leave has also been shown to reduce turnover, functionally reducing costs to an organization.
As noted by Public Source, the majority of businesses currently offering paid family leave programs in the United States tend to be large employers – but paid family leave can, and should, be a part of small business’ operations structure. Trying Together encourages small business owners to move beyond the question of whether it is possible, and towards what the right design is to make paid parental leave feasible for all employees in Allegheny County.
Successful current paid family leave programs across the United States all share one common thread of utilizing a social insurance model. In doing so, the cost burden is not the employer paying out-of-pocket dollar to dollar for every day missed, but rather is part of a shared pool similar to how unemployment insurance and disability insurance function.
As Public Source reports, most states have been able to cover the costs of their parental leave policies with a payroll tax of less than 1%. Since payroll costs make up only a portion of a business’ total revenue, an average business should expect its costs to rise by less than 1%. When viewed from a cost perspective, this model is far less burdensome to a business than having to replace employees due to workplace policies that don’t support new parents.
While we recognize the county is restricted in its ability to create a social insurance design through a new tax, we urge continued advocacy for the passage of the Family Care Act in the state. Senate Bill 906 proposes a state-run insurance program funded by employee payroll deductions capped at no more than 1% of a worker’s wage. House Bill 200 mandates that employers cover partial wage replacement for qualified employees, and proposes a grant program to help small businesses offset the costs.
Considerations for the Early Care and Education Sector
Child care providers overwhelmingly recognize the value of paid parental leave. However, there are unique operational and financial constraints that make implementing extended paid leave especially challenging. Child care programs operate with limited financial reserves while maintaining strict state-required staff-to-child ratios for the health and safety of young children.
When a teacher takes extended leave, providers often must continue paying the employee while simultaneously paying overtime, hiring substitute staff, or reducing classroom capacity if qualified staff cannot be found. Unlike many businesses, child care programs cannot simply increase production or temporarily reduce staffing levels without affecting families’ access to care.
Trying Together recommends:
- Adding an element of social or private insurance to support the implementation of the proposal and ensure a funding model and structure
- Creating an option for child care programs/small businesses to buy into private group insurance
- Developing and maintaining a county child care substitute pool to ensure programs remain staffed
- Increasing the 30-day qualification requirement
- Considering a scaled approach for implementation
- Educating the community on how the county policy will interact with other policies such as FMLA and short-term disability
- Exploring a partnership with local philanthropy for funding support
Additionally, Trying Together continues to recommend that policymakers increase support for the systemic needs of the field, so that child care providers can be more financially secure and stabilized.
Those working in the field know very well that child care teachers are not simply babysitting or watching children. Their work is that of a skilled professional, deeply committed to supporting children during their most rapid period of brain development, which lays the foundation for all future learning and development. To create a sustainable pipeline of passionate, highly professional, and dedicated early childhood educators, increased compensation and benefits such as paid parental leave are required.
The question is not whether paid family leave should exist; it is asking how we can collectively implement it in a way that strengthens families without unintentionally weakening the child care system upon which those same families depend. Paid family leave and a strong child care system are complementary investments. Supporting child care providers during paid parental leave implementation ensures these two public priorities reinforce one another rather than compete.
Learn More
To learn more about the currently proposed paid parental leave policy of Allegheny County, see Allegheny County’s Paid Parental Leave FAQ sheet.
To view the full public comments on the policy proposal, as submitted by Trying Together on July 10, including in-depth recommendations for the child care sector, please click here.
