| 2/5/2013 |
Goldin proposal would expand TDI to cover caregivers
STATE HOUSE – On the 20th anniversary of the signing of the federal Family Medical Leave Act, Sen. Gayle Goldin today will introduce legislation to create a program that would expand temporary disability insurance to employees who must take time out of work to care for a family member or bond with a new child in their home.
“The time for paid family leave has come; 20 years after the signing of FMLA, Rhode Island is ready for a state program that cares for workers while supporting business.” said Senator Goldin (D-Dist. 3, Providence). “Life is filled with unexpected events, and all of us, from minimum wage workers to top executives, have experienced the push-pull between work responsibilities and someone in our families needing us. Paid family leave is a cost-effective way to give employees the time to balance family and work responsibilities without jeopardizing their economic security.”
Temporary disability insurance is a state program, and of the five states nationwide that have such statewide programs, two – California and New Jersey – allow it to be used by caregivers, not just those who are suffering the illness or injury themselves. Research on the California program has shown that the introduction of paid family leave has had positive effect on employees’ productivity, performance and overall profitability of businesses. Overall, companies in both states have reported savings from increased employee retention and lower turnover cost.
Such a program could help Rhode Island companies compete with companies from other states that offer paid leave for new parents or for those experiencing health problems.
The federal Family Medical Leave Act covers employees at firms with 50 or more employees, and allows a worker to take unpaid time off from work to care for a family member without the risk of losing his or her job. Senator Goldin’s legislation would expand the state’s TDI program so it will cover up to eight weeks of wage replacement for workers who take time off to care for a seriously ill spouse, child, parent, domestic partner or to bond with a new child, whether through birth, adoption or foster care. Temporary caregiver benefits would be limited to those who are the caregiver of their sick or injured family member, and the program would require documentation from a licensed health care provider.
The expansion would be funded through employee contributions, just as the rest of the TDI program is currently funded. In order to support the expanded benefits, employees would contribute approximately 0.1 percent more in the first year. For a worker earning $43,000 a year, this would mean he or she would pay 83 cents a week to participate in the expanded benefit.
In Rhode Island, private-sector employees – 78 percent of the workforce – pay into TDI and have it available to them if they should become temporarily disabled. This legislation would mean each worker pays a little bit more, but, in return, would be protected from wage loss should a family member need his or her care.
The bill would limit the benefit to eight weeks per year, and contains a provision that would stop a worker from trying to take temporary caregiver benefits and temporary disability benefits for the same purpose. However, should an employee suffer his or her own disability or illness the same year as taking temporary caregiver benefits, he or she would also be able to access the full amount of his or her own temporary disability benefits that year, provided the total over the course of the year is no more than 30 weeks of his or her income.
The development of TDI in the mid-1940s was critically important to workers and our economy in this state, says Senator Goldin. Yet, times have changed. Today, 70 percent of children in Rhode Island live in families with both parents working and many families need a dual income to make ends meet.
“For some Rhode Islanders, this program could be a life saver. The birth of a child and health care crises are some of the leading causes of financial problems or even bankruptcy for families in this country. Paid family leave will mean bills won’t have to go unpaid because of an unexpected illness and won’t add further stress to an already difficult time. For other families, it might mean they won’t have to pay for expensive care in a medical facility for a person who would be safe at home with some help. And in some cases, it could make the difference that prevents an ill person from being left alone when they shouldn’t be. TDI is just as necessary for caregivers as it is for the injured or sick,” said Senator Goldin.
For more information, contact:
Meredyth R. Whitty, Publicist
State House Room 20
Providence, RI 02903
(401) 222-2457 |
LEGISLATIVE INFO
