The call by President Biden for a federally funded paid family leave program in his first address to Congress earlier this year highlights the paucity of the leave rights for employees in Minnesota and the need to bolster them.
Enacted in 1993, the Family and Medical Leave Act, better known by the acronym FMLA, has been popular, widely used and successful.
Although originally conceived during the 1980s to allow women time off from work for childbirth and postpartum recovery, it has expanded to cover employees needing a temporary respite from the workplace to care for their own needs, those of relatives including children, spouses, and parents, and pre-delivery and post-partum pregnancy and adoption.
But the federal law has many limitations. Because it applies only to employees who have been at a workplace for a year and at companies with 50 or more employees, it covers only about 20% of the workforce and fewer than 10% of low-income earners.
Above all, under current law, the leave is unpaid, although employers can unilaterally decide to subsidize employers on leave, which some large companies do, largely as a tool for recruiting or maintaining top talent. Employees can use any accrued sick or vacation leave to be paid during the time they are off work. Those few who have private-disability insurance can be paid under those policies.
Most employers who provide health insurance, as do the bulk of large employers, generally have short-term or long-term disability insurance policies that may provide some compensation for employees on leave.
An employee taking a leave of absence must be reinstated to the same position, at the same salary and benefits, upon return. An employer who fails to do so may be subject to a lawsuit for retaliation and may be required to reinstate the employee as well as pay damages.
One exception to the reinstatement requirement concerns "key" employees, defined as those within the top 10% of the pay scale. Because of the difficulty of obtaining temporary fill-ins for high-level positions, the law permits employers to refrain from reinstating such an employee to a prior position upon return from leave of absence if doing so would create "substantial and grievous economic injury" to the employer.