What could paid family leave look like under a Harris-Walz administration? Minnesota has clues.
If elected in November 2024, the Harriz-Walz presidential ticket has promised to advocate for the enactment of a federal paid family leave law. This issue is well known to both Harris and Walz. Harris previously supported up to six months of paid family leave as a Presidential candidate in 2019. As Minnesota Governor, Walz enacted a statewide paid family leave law and has said that Democrats should make paid family leave a top priority if they win in November.
But what would a federal paid family leave law look like? Here are a few key questions to assess as Harris-Walz ticket develops its proposal and how they were addressed under the law enacted by Walz in Minnesota.
Will a federal law preempt state laws?
Over a dozen states now provide paid family leave to their workers. A key question is whether a new federal paid family leave law would preempt those state law frameworks. If it did, those state paid leave entitlements would disappear and be replaced with federal benefits that apply to everyone equally throughout the country.
If the Harris-Walz law does not preempt state laws, then employers may find themselves in the difficult position of having to comply with already-complicated state family leave laws and the new federal law. Employees in certain states may also have the ability to stack state and federal long-term leave entitlements to take more time off work.
What kind of leave will be compensated?
State laws differ when it comes to the permissible reasons for leave and whether the leave will be paid. Minnesota’s law provides paid leave for both family needs and medical reasons. Employees could take leave to bond with a child within the first 12 months of birth or placement in foster care, caring for a family member, the employee’s own medical condition (including pregnancy), or reasons related to military deployment.
How much time off?
Another important question is how much paid time off employees might get to take each year under a federal paid family leave law.
Many states that have enacted paid family leave have mirrored the FMLA by offering a maximum of 12 weeks of leave for family or medical reasons. Minnesota takes the same approach. However, if a Minnesota employee needs both family and medical leave in the same 12-month period, then the employee could take up to 20 weeks of paid leave in total.
How will the rate of pay be calculated?
State laws have a maximum rate of pay that employees can receive while on a paid family leave.
The rate of pay, up to the maximum, is calculated based on a person’s earnings reported to the state unemployment commission throughout a lookback period (e.g., the first four out of the last five months). It is unclear how the federal government would manage payment calculations.
Will intermittent leave be allowed?
State paid family leave laws typically allow employees to take time off on a continuous basis or in intermittent chunks. Paid intermittent leave creates tracking and payroll challenges that employers will need to determine how to navigate. Minnesota, like other states, allows for intermittent paid family leave.
How will paid leave be financed?
State paid family leave programs, including the forthcoming one in Minnesota, are financed by payroll deductions. Typically, employers are required to pay at least some portion of the premium while the rest falls on employees. A federal law might also be supported by payroll taxes.
How long will it take to implement paid family leave?
If Congress enacts a paid family leave law, it will take considerable time and effort to set up the infrastructure to support it. For example, Minnesota enacted its paid family leave law in 2023. But Minnesotans will not be able to take leave under the program until January 2026.
There are still many questions to be answered as a potential Harris-Walz administration works on its proposals for key initiatives like paid family leave. The laws passed in Minnesota and other states may provide the roadmap for a federal framework – time will tell as those laws are implemented and lawmakers assess their effectiveness.