New Jersey, which doubled the length of mandated paid leave last year to 12 weeks and increased wages covered to 85%, taxes employees to pay for it. But only a fraction of them use it, and they and society as a whole benefit from it. Given that, everyone should help pay for it, not just workers, perhaps through sales tax revenue.
The parent company of Danone North America, whose brands include Dannon, Activia and Horizon Organic, is based in France, where new mothers are not only eligible for 16 to 26 weeks of paid leave but are required to take at least eight weeks. No surprise then that Danone North America is funding the payments to its employees during their parental leaves.
That’s fair because workers considering a job with Danone can evaluate paid leave as part of the company’s overall wage and benefits package. Besides having value for many employees, it might suggest the company treats its workers well.
Presumably Danone’s greater leave benefit supplements the existing New Jersey requirement.
With varying state mandates and funding systems, as well as some companies providing their employees with the benefit, no wonder Congress struggles to develop a uniform national paid leave policy. If all other nations have done so, the U.S. could do it too.
