Trump Endorses Six Weeks Paid Family Leave, Sets the Stage for 2017 Debate in Congress

Employment Law

Donald Trump's paid maternity leave proposal virtually guarantees employers will have to be actively engaged in addressing the issue next year, regardless of who wins the election in November.  Mr. Trump’s proposal is similar to the so-called "Baby UI" rule that was promulgated at the end of the Clinton administration and then quickly reversed by the Bush administration in 2001.  Specifically, the Trump plan would "guarantee six weeks of paid maternity leave by amending the existing unemployment insurance (UI) that companies are required to carry.  The benefit would apply only when employers don't offer paid maternity leave, and would be paid for by offsetting reductions in the program so that taxes are not raised."  The proposal would likely require amending UI law by Congress and implementation by the states.  Notably, the Trump plan differs from current state paid family leave laws that exist apart from the UI system and are either paid for with a payroll tax on employees or a tax on both employees and employers.  However, the Trump plan is consistent with most state laws that also provide four to six weeks of paid leave.  It is also worth noting that current state laws provide for paid family leave to both parents, while Mr. Trump's proposal is only available to new mothers.  Should Trump win in November, he will likely ask Congress to take some action on the issue, and should Secretary Clinton win, she will certainly use Mr. Trump's proposal as cover for her own plan.  Nevertheless, employers will need to continue to raise the level of concern over the growing maze of state and local paid leave laws.