What is PFML
Paid Family and Medical Leave (PFML) is a state-level program that provides partial wage compensation for periods of leave that are job protected (by the Family Medical Leave Act - FMLA) at the federal level. PFML includes three types of leave:
Parental - leave taken to bond with a new child through birth, adoption or foster placement
Family – leave taken to care for a loved one with a serious health condition
Medical – leave taken for one’s own serious health condition
A state-level PFML program can serve as a baseline that employers can build on with private programs.
A statewide PFML policy will have positive impacts on many of the workforce and economic challenges facing Alaska’s communities, businesses, and families.
What are the benefits for Alaska’s Families
Most workers will need time away from their job at some point in their career to care for family responsibilities. The Family Medical Leave Act (FMLA) protects workers’ jobs when leave is needed but stops short of providing wage replacement. A statewide, paid family and medical leave program can help fill this gap by providing wage replacement when life events necessitate leave from work and reduce the risk of economic instability.
Every Alaska family faces moments when work must wait – a new baby coming home, a parent recovering from surgery, or a spouse battling a serious illness. Right now, while workers can take unpaid leave without losing their jobs, most families can’t afford to go weeks or months without a paycheck.
It’s an impossible choice many Alaskans face – be there for your loved ones in times of need or go to work to keep the lights on and food on the table.
A paid family and medical leave program changes this reality. A PFML program in Alaska means an Anchorage mom can take time to bond with her newborn without worrying about next month’s rent. It means a father in Healy wouldn’t need to lose weeks of wages to be there for his child recovering from specialized surgical care in Seattle. It means a Wasilla son can care for his aging father after a stroke without draining his savings. It means a worker from Ketchikan recovering from their own medical emergency can focus on healing, not bankruptcy.
Paid family and medical leave policies protect families in their hardest moments. When Alaska’s families are strong, Alaska is strengthened.
HOW DOES PFML
BENEFIT FAMILIES?
Increase in school readiness measures and educational outcomes
Increase in positive maternal and child health outcomes
Increase in family economic stability
Decrease in post-neonatal infant mortality and maternal depression
Increase in family outings and time spent reading to children
Higher likelihood of employees receiving promotions and raises after taking leave
What are the benefits for Alaska’s Businesses?
Alaska continues to struggle with a worker shortage across multiple sectors. With limits in workers available, employers must work to retain employees. To address its workforce needs, the State of Alaska must maintain pace with other states to remain competitive.
A statewide paid family and medical leave program can support businesses by providing wage replacement for workers who need time away from work through a statewide insurance program. Because the insurance system, rather than the employer, pays employee benefits during leave, employers retain the money in their bank accounts that would otherwise have been used to pay the leave-taking employees' wages. Thus, employers can offset the impact of an employee’s leave by paying overtime, adding extra hours for existing employees, or hiring temporary help. Additionally, employees are more likely to return to work, reducing turnover and saving the employer money on recruitment and training.
How does PFML
benefit businesses?
Increased worker recruitment and retention
Increased business productivity
Improved workplace morale and culture
Potential increases in overall business revenue
Increase in local purchases, boosting sales for local businesses