Paid family leave is the right answer for PA families – and the commonwealth itself

Pennsylvania could soon join surrounding states in enacting a paid family and medical leave insurance program to serve the needs of Keystone State workers, families and businesses. As Gov. Josh Shapiro seeks to make the commonwealth a leader among its peers in economic development that attracts young families to the state and in delivering government services through digital modernization, establishing and running a high-quality state-paid leave system must be next on the state’s agenda.

Pennsylvania stands alone among its northeastern neighbors as the one state that has not yet created a state-paid leave program to guarantee that new parents, family caregivers and ailing workers have time away from their jobs without forgoing financial stability and security. 

Among the 13 states and the District of Columbia that currently (or will soon) offer paid family and medical leave through a state-created program, eight are proximate to Pennsylvania. In these states, paid leave is an important baseline for workers’ economic security and labor force engagement, families’ health and well-being – and economic success.

Fortunately, Pennsylvania could soon join surrounding states – and not a moment too soon. 

Last month, the state senate’s labor and industry committee, chaired by state Sen. Devlin Robinson, passed Senate Bill 580, the Family Care Act in a bipartisan 8-3 vote. A companion bill, House Bill 181, passed three House committees late last year and secured bipartisan support on the House floor in a preliminary vote on the last day of session in 2023. Either bill is ripe for final floor action when the legislature returns from its summer recess. 

Achieving the goals set out by the governor for children and families; older adults and their caregivers; economic innovation and competitiveness; and the responsiveness of government to its people would all be furthered by passing an effective paid leave program. 

Paid leave has been proven in other states to raise wages for new mothers, increase labor force participation rates for parents and caregivers, and create greater equity in caregiving for families with young children. For a state with significant health disparities and a large rural population that must travel long distances for care, paid leave could be a game-changer for economic and health equity.

For businesses, paid leave systems provide stability and security when workers need to take time away from work. They also help to make smaller businesses more competitive, and reduce or offset the costs of a worker’s absence for caregiving or health reasons. In states with paid leave, 62% of businesses report a boost in employee morale. Especially when businesses in surrounding states have paid leave support, the businesses that the governor is working so hard to attract to Pennsylvania will be at a disadvantage in finding and bringing workers to the state. According to research commissioned by Businesses for Social Responsibility, 61% of workers who say they are considering relocation in the next two years say they would be more likely to choose a state with paid leave, while 40% say they would be less likely to move to a state without paid leave.

The good news for Pennsylvania is that the work being done by the Shapiro administration to upgrade government services through investments like CODE PA will go a long way toward ensuring the effective delivery of the paid leave benefit. Passing the policy is only half the battle; to make sure that the program is successful, Pennsylvania will need to engage its top talent to build effective digital systems that are responsive to the needs of families and businesses. It’s a win-win for the commonwealth, which can use the paid leave program to attract top talent and utilize it in a forward-thinking way. 

And Pennsylvania can lean on its neighbors for insights into benefit delivery. New Jersey, which was the second state to pass paid family leave in 2008 – and which updated its program in 2018 – has been able to improve satisfaction and reduce call center wait times to less than two minutes. Massachusetts, meanwhile, which passed paid leave in 2018, is a national leader in digital service delivery. The District of Columbia, Delaware and Maryland all have built or are building their own paid leave programs, and all have valuable experience to share. Pennsylvania can learn and improve, becoming a national leader on this key issue impacting millions of families and individuals.

Paid leave would give Pennsylvania the ability to serve its citizens during major, transformational life events. Whether it’s the parents of the more than 130,000 babies born each year, the loved ones supporting 3.4 million older adults or the more than 1.7 million people with significant disabilities, Pennsylvanians should not have to go it alone – and employers shouldn’t be forced to make decisions about shouldering the costs of paid leave on their own either. Pennsylvania can do better for everyone and it’s well equipped to deliver.

Vicki Shabo is a Senior Fellow for Gender Equity, Paid Leave & Care Policy and Strategy with New America’s Better Life Lab. Nikki Lee is the Director of Product with New America’s New Practice Lab