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DC's Mandated Paid Leave Policy Proposal - 10/26/15

Local lawmakers in Washington, D.C. are considering a proposal to provide up to sixteen weeks of paid leave a year for significant family or medical issues.  As reported by CNNMoney, any District of Columbia resident, or any employee of a D.C.-based private company would be eligible.  The proposed policy would be the nation’s most generous mandated paid leave policy by some distance. 

In fact, only three states – California, New Jersey and Rhode Island – have mandated policies and they offer fewer paid weeks.  Employees covered by the District’s so-called Universal Paid Leave Act of twenty fifteen could take paid time off for family bonding with a new child or a major personal or family medical issue.  During their leave, employees would be paid one hundred percent of the first one thousand dollars of their weekly wages plus fifty percent of their weekly wages above that amount.

A person’s weekly benefit couldn’t exceed three thousand dollars, but that still translates into forty-eight thousand dollars over a sixteen week period.  Benefits would be paid out of a fund managed by the city.  To finance the fund, private employers in the District would be taxed between zero point five and one percent of every employee’s gross salary.

Anirban Basu, Chariman Chief Executive Officer of Sage Policy Group (SPG), is one of the Mid-Atlantic region's leading economic consultants. Prior to founding SPG he was Chairman and CEO of Optimal Solutions Group, a company he co-founded and which continues to operate. Anirban has also served as Director of Applied Economics and Senior Economist for RESI, where he used his extensive knowledge of the Mid-Atlantic region to support numerous clients in their strategic decision-making processes. Clients have included the Maryland Department of Transportation, St. Paul Companies, Baltimore Symphony Orchestra Players Committee and the Martin O'Malley mayoral campaign.