Urgent government action is needed to pass legislation guaranteeing earned time off for all American employees. Despite the U.S.'s high-income status, it remains the only country that cannot assure workers of paid time off under its national workplace regulations.
How Are Employee Benefits Evolving?
There has been a significant increase in the United States' per capita GDP since the Fair Labor Standards Act (FLSA) passage almost a hundred years ago. The act, focused on workplace safety, a minimum wage, and overtime pay, was to establish a 40-hour work week. However, despite this economic growth, the definition of a fair workplace and workers' rights have not seen substantive change.
In today's economy, workers must take time for illness, family matters, rest, recovery, and personal needs. Unfortunately, this need is missing from the FLSA. Now, as workers expect to live much longer than they did in the early 20th century, an updated version of the FLSA for the 21st century is needed to enable fair earnings and access to paid time off.
Can Change Be on the Horizon?
The Hamilton Project at Brookings is set to publish a policy proposal exploring a modernization of the FLSA. This change would establish a new baseline for the American labor market, including the 40-hour workweek, overtime protections, the federal minimum wage, and the right to earn paid time off for all qualified workers.
With "earned time off" as an extension of the FLSA, the U.S. can continue advancing labor rights. This is an opportunity to align the U.S. workplace rules with those of other advanced economies that have mandated some form of paid leave for workers to ensure equitable workplaces.
What is the State of Paid Time Off?
Currently, paid leave is not universally available and depends on geographical location. The District of Columbia and fifteen states have enacted earned paid sick leave requirements, and 13 states have some form of paid family and medical leave.
The value of these policies is clear. Paid time off increases productivity and labor force participation with negligible costs to employers. It also reduces "presenteeism," boosts productivity, and helps keep workplace illness in check. This form of leave is earned through hard work and practically acts as 'forced savings' for workers, ensuring they don't lose critical income.
Who Still Struggles with Access to Paid Leave?
Even with the advances in some regions, many workers still don't have access to paid sick leave. About 34 million workers, nearly 23 percent of the workforce in the U.S. lack paid sick leave. Unfortunately, these figures are higher for low-wage workers, part-time employees, gig workers, and independent contractors.
Why is Earned Time Off So Crucial?
Amending the FLSA can ensure eligible workers receive a certain amount of paid leave or 'earned time off.' This proposed change is simple, fair, and offers ample flexibility. It covers a broader range of people, including independent contractors and part-time workers.
What Are The Benefits of Earned Time Off?
An earned time leave policy tied to work could increase labor force participation, equate hours worked, and position the U.S. with globally competitive nations. It would give workers the control they desire over their benefits and trust them to responsibly use their earned time off. By recognizing and understanding the workforce's diverse needs, earned time off can pave the way for a more enhanced, balanced, and effective American labor market.
