A proposal to help offset the cost of paid family leave for hourly workers has been included in the Senate’s tax reform legislation.
The Senate Finance Committee has incorporated Sen. Deb Fischer’s paid family leave proposal.
“So, I was very excited to have it included in the package,” Fischer tells Nebraska Radio Network. “Obviously, the Finance Committee members felt it was important. So, it’s in there.”
The two-year pilot program would provide a 25% tax credit to businesses which provide paid family leave.
Fischer says she tried to strike a balance, providing an incentive rather than a mandate.
“I’ve had business people say that they have two employees and that if they were mandated to offer that paid family leave that they might have to let one of those employees go.”
Senate Finance Committee chair, Sen. Orrin Hatch of Utah, released the new tax reform plan. It included the Fischer proposal, called the Strong Families Act. The act would allow workers to take leave on an hourly basis to take care of family obligations, such as tending to a sick child or caring for an elderly parent. It would also cover maternity and paternity leave for both the birth of a child or the adoption of one.
Fischer says larger corporations frequently provide paid family leave for salaried employees. She says hourly employees often get left out. The proposal sets a limit on the salary-level eligible for the credit.
Click here to read the provision included in the Senate tax reform package.
AUDIO: Brent Martin reports [:50]