News

Release courtesy of the Michigan League for Public Policy

Contact: Laura Ross, Communications Director, Michigan League for Public Policy
lauramr@mlpp.org

LANSING—On Wednesday, Nov. 13, advocates and experts held a virtual press conference highlighting the benefits that a statewide paid family and medical leave program would have for Michiganders and the importance of passing the Michigan Family Leave Optimal Coverage (MI-FLOC) during the final weeks of the 2024 legislative session.

“Today, we are here to discuss how the results of the qualitative studies confirm what we already know to be true,” said state Sen. Erika Geiss. “These studies highlight that paid family leave is a win-win for people and businesses. Companies with paid leave programs report higher employee retention, increased productivity and lower turnover costs. For workers, they will have the time and financial assurances that they can take care of themselves or a loved one, without sacrificing financial security. FLOC is also good for the economy. Paid leave programs lead to healthier, more productive workers, which translates to a stronger workforce and a more resilient economy, for generations to come.”

The MI-FLOC legislation introduced last year would establish a 15-week paid family and medical leave program in Michigan, which is something that the majority of Michiganders–71%–have said they support. The studies referenced in today’s press conference were released by Michigan’s Department of Labor and Economic Opportunity (LEO) and explore the health, employment and economic impacts of paid family and medical leave programs.

Luke Shaefer

H. Luke Shaefer, the director of the University of Michigan’s Poverty Solutions and a co-author of one of the reports, noted that there are many positive economic impacts that come out of paid leave policies, including better economic security for workers and the multiplier effect of those dollars cycling through local economies. He also noted that people who go on leave are more likely to stay in a job, resulting in a short-term loss for employers for a long-term gain, and that paid leave programs can have a positive impact on labor force participation for those most likely to need to take leave.

“When we look, for example, at the labor force participation of women in other countries that have much, much more generous paid family leave policies than in the United States, we see that women in those countries have higher labor force participation over the long term as well as in all of the other states that have adopted a policy like this,” Shaefer said.

Monique Stanton, president and CEO of the Michigan League for Public Policy, also touched on how an actuarial analysis also released by LEO this year shows that paid leave is a low-cost, high-value program for workers and businesses.

“Paid leave will cost less than a pop or a cup of coffee each week for workers that make the minimum or median wage. And, for that low cost, it will provide workers with the security they need to keep their jobs and the majority of their income if they were to need to take an extended leave from work to care for themself, a loved one or a new child,” Stanton said. “The costs of not implementing paid leave include wage and job losses for workers and families, worse health outcomes, higher healthcare costs, talent losses for businesses, and a negative impact on the state economy.”

Thirteen states and the District of Columbia have passed and enacted paid leave policies.

“It’s time for Michigan to join California, Colorado, Connecticut, Delaware, Hawaii, Maine, Massachusetts, Minnesota, New Jersey, New York, Oregon, Rhode Island and Washington—the 13 states that have paid leave programs,” said Mothering Justice National Executive Director and Founder Danielle Atkinson. “What we have an opportunity to do here in Michigan is to stand up for people who have called for this policy overwhelmingly. We know this policy is overwhelmingly popular because it’s overwhelmingly needed.”

According to estimates, if Michigan were to implement the most robust plan included in the actuarial analysis commissioned by the State of Michigan, a worker making the state median wage ($46,940 at 40 hours per week) can expect to pay $178.37 annually or a little more than $3 per week in contributions. And an individual earning the current minimum wage ($21,486.40 at 40 hours per week) can expect to pay $81.65 annually or about $1.50 per week.

The studies referenced in yesterday’s press conference are:

• Economic and Health Impacts of Paid Parental, Caregiving, and Medical Leave by Karen Kling, H. Luke Shaefer and Betsey Stevenson with the University of Michigan’s Poverty Solutions
• Paid Family Medical Leave: Health & Employment Outcomes by Patricia Stoddard-Dare, PhD