Well-intentioned though it might be, new paid family leave law is going to cost all of us

Staff

Like many pieces of legislation, Oregon’s new paid leave law provides some benefits.

But it’s going to cost us all, just like many of the other “progressive” initiatives our state has formulated in what critics describe as an onward march toward increased socialism.

“Socialism” is one of those words that many of us don’t want to hear.

For some of us, it may be a somewhat mind-numbing return to high school civics class, memories of obtuse textbook references to Karl Marx and Friedrich Engels and John Stuart Mill, capitalism, communism and such.

For others, more inclined to analysis, it’s a description of the slow, but seemingly inevitable increase in state control that has come with increased “service” to residents (funded by us, the taxpayers): retirement benefits, health care, welfare assistance for the infirm and impoverished, minimum wage laws, rent control, clean air measures and many others, too numerous to list in this limited space. They all add up to one thing: increasing costs to us and control over our daily lives.

And now we have what supporters describe as the nation’s most “progressive” family and medical leave measure, signed by Gov. Brown last week. The law, which got votes from both sides of the aisle, gives 12 weeks of paid time off to new parents, victims of domestic violence and those who become ill or need to care for a sick family member.

An obvious difference between our new state law and the federal Family and Medical Leave Act, signed by President Clinton 26 years ago, is that FMLA didn’t pay the bills. It just gave employees 12 weeks to take care of family matters without having to worry about getting fired.

The Oregon law goes much further. It covers 100 percent of minimum wage, decreasing as incomes rise. And, it allows workers to take time off, with pay, beyond the immediate family – significant others, friends and other close associates that are “the equivalent of a family relationship.” It even extends to those in the state illegally.

Workers also will be able to take paid time off in nonconsecutive increments, so if someone has a chronic illness, they can take time off when needed.

Of the many laws passed in the Legislature this past term, this one addresses a real problem for many people: how to survive when life takes a bad turn. All of us – even employers – can relate to the problem of having to take time off, often without pay, to deal with family emergencies.

Legislators were kind to small businesses, those with less than 25 employees, deciding not to force them to directly pay into the program, though their employees will receive benefits.

In larger companies, though, employers will cover 40 percent, with employees contributing the rest.  The Oregon Employment Department will base rates on an employee’s wages, with each worker’s contributions not to exceed 1 percent of that person’s earnings – similar to the unemployment insurance that employers and employees share costs for.

We don’t want to be mean-spirited here. There are real needs out there, tragic circumstances that can truly cost their victims in multiple ways. There is a spirit of charity, at some level, behind this measure.

But none of this is free – in any sense of the word. This isn’t charity because it’s not freely offered. It’s required. Ultimately, we’re all paying for this because all those employer costs are going to be passed on to the public.

With all of us paying the costs, in the end this system might work. It had better, because the last thing we need is another debacle like those PERS payouts that constantly drain our school district of the tax dollars we pay for our children’s educations.

The Legislature, in passing this law, and Gov. Brown, in signing this bill last week, just added another stick to our load.

So here’s a question: Why now? What happened in years gone by when family crises arose, when circumstances were difficult? What’s changed?

Society has, apparently. The fact that this law has been passed indicates our politicians consider family leave a problem that demands action. Apparently, the assistance traditionally offered by family members, churches, friendships and others who once would have stepped into the breach, is falling short. Or maybe our leaders just think they can do better.

Republican Rep. Greg Barreto of Cove, who owns a manufacturing business, noted to Oregon Public Broadcasting in June, when the bill passed the House, that the state dictates how much he pays his employees, what kind of benefits he offers, how many hours a week they can work.

Barreto raised a question that many small business owners are probably asking: Why stay here when other states are so much friendly to business?

Even though the problem is real and the intent might be commendable, the mechanism to solve this is wrong.

But increasingly, our government is attempting to solve our problems, and it’s not free. In fact, it’s usually expensive and creates more problems and unintended consequences.

If Oregon residents don’t engage with what’s on the agenda in Salem, the frying pan will get a lot hotter for us.

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