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May 20, 2016

Paid leave to cost $159 per employee, study estimates

Courtesy Photo Paid family leave is currently being debated at the state level.

A UMass Boston analysis of the paid family and medical leave act being discussed at the state level is estimating that it would cost employers approximately $159 per employee each year to implement.

The study was spurred on by the current discussion at the state level of extending paid family and medical leave, including sharing the costs of leave and expanding access. The study used a simulation to estimate the number of leaves taken, their lengths, who takes leaves, and the costs associated with leave-taking in Massachusetts currently, as well as with a hypothetical statewide paid leave program in place.

“The proposed leave program allows for more universal coverage by spreading and sharing the costs and will have the intended effects of allowing workers who need time off for their own health, to bond with a new child, or to take care of a relative to do so without extreme financial sacrifice,” the executive summary of the study states.

In addition to calculating an estimated cost, the study found that the program would especially increase leave for black, Latino/a, low-wage and near-poor workers as well as people who work for small firms such as those with less than 50 employees, according to the study.

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