2025 Policy Recommendation
Enact a Paid Family and Medical Leave Insurance program for Vermonters seeking to take time off to care for a family member or themselves while welcoming a new child into the family, while navigating an illness or injury, or after experiencing a loss. Ensure that the benefit through this program covers all caregivers in the case of a two-parent household, and that the benefit is sufficiently generous for low-income families to utilize the program.
Renewed Policy Recommendation (2024)
What It Means
Enacting a universal Paid Family and Medical Leave Insurance Program would make Vermont one of a growing number of states that offers all workers protected and paid leave from work. A universal insurance model would ensure all workers in Vermont are able to take paid leave for a variety of eligible events as defined by a potential law (a serious health condition; providing caregiving for a family member with a serious health condition; the employee’s pregnancy; recovering from childbirth or miscarriage; caring for and bonding with a child after birth, adoption, or foster care placement; military leave and care; safe leave; and up to two weeks of bereavement leave).
The legislation that Vermont lawmakers have previously considered is highly inclusive in terms of both eligible events and its definition of family, making it a strong and equitable approach. Within the context of this proposal, workers would be reimbursed up to 90% of their wages, up to a maximum benefit of 90% of the state average weekly wage. This component of Paid Family and Medical Leave Insurance Programs, known as the “wage replacement,” is a critical element from an equity perspective and needs to be high and/or progressive enough that lower-income workers are able to utilize the program due to significant lost wages.
Why It Matters
Vermont’s current strategy for paid leave does not meet the needs of its workforce. The administration’s voluntary paid leave program has provided important access to paid family and medical leave for state employees and those whose companies enroll in The Hartford’s coverage, but the coverage lacks inclusive eligible events and leaves many Vermont workers unprotected. In Vermont, 47% of birthing parents returning to work after having a child do not have paid leave.
Connects to VECAP Goal 1:
All children have a healthy start.
Spotlight on Equity
Birthing parents returning to work in Vermont having had paid leave are more likely to have private insurance (72%), while only 26% of birthing parents with access to paid leave are on Medicaid, and have low-incomes. Access to paid family leave has been associated with birthing parents being more likely to be working (18.3% higher probability) one year following birth, and an average increase of $3,400 in household income among birthing parents of 1-year-olds.
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