Another Paid Leave Law to Pop Up in Congress

Senator Kirsten Gillibrand, a Democrat from New York, is insisting on more paid leave laws. A new tax to be tacked onto payroll taxes, called the FAMILY Act, creates another Social Security trust fund. This costs employees another 0.2% of wages, which goes into a fund used to pay employees who go on family leave. This is not necessarily a bad idea. The FMLA, which already covers leave, pays out to companies for employees that go on leave for family or medical related purposes. The FAMILY Act is an act designed to make the program self-sufficient. However, it also extends the reach of the FMLA. Gillibrand has the “American Opportunity Agenda”, which is intended to establish this act. She is also desiring an increase of the federal minimum wage to $10.10 in a three year period and continue adjusting for inflation. Tax breaks for child care as well as a Paycheck Fairness Act are also part of her agenda. The Paycheck Fairness Act is going to remove privacy from employees, limit what employers can pay based on different attributes of employees, and mandate the collection of wage information from employers. These are all going to add a lot of unnecessary red tape to all companies.

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