Paid family leave proposal would cost Illinois workers, businesses

Published October 19, 2020 1:30pm ET



Illinois state Sen. Ram Villivalam plans to introduce a paid family leave bill in the Illinois legislature sometime in 2021.

The proposal would give employees full or partial paychecks for three to six months when they have a new baby, need to care for a sick relative or have an illness themselves.

A paid leave option is even more important as COVID-19 affects more families, Villivalam told NPR Illinois, but it would result in increased costs on individuals and businesses.

Mark Grant of the Illinois chapter of the National Federation of Independent Businesses has concerns about the proposal. Thirty percent of his members are struggling to stay in business during the pandemic. Now is the worst time to hit small businesses with a costly government mandate, he insists. A recent national survey of NFIB members says many small businesses have used up their PPP relief funding.

They say they will be forced to start laying off workers if Washington does not provide additional COVID-19 relief to businesses soon.

“It is not fair to ask employers to cover the costs involved. Many can’t afford it – especially the smaller ones,” Grant told The Center Square.

Villivalam envisions shared costs – with workers and the state helping the employers to provide paid leave. One idea is to create a pool of state funding – like a big insurance pool – that employees would pay into and then access when a major life event impacts their family.

The idea is catching on nationally. Eight other states are set to implement paid family leave programs after 2021.

Grant says his members are leery of one-size-fits-all government mandates. If a worker on a loading dock opts to take paid family leave, he explains, the employer would have to hire someone else to do his job for three to six months. During that time, the employer would have to pay the original worker all or part of his salary. The employer would also have to pay a second salary for the same job to the replacement worker. The employer would also be required to pay workers compensation rates and taxes for both employees.

For many businesses, that’s not sustainable, he said.