The District of Columbia (D.C.) Council approved a bill on December 20, requiring employers to give workers 8 weeks’ paid leave for the birth, adoption, or foster placement of a child. Employers will pay for the leave through a payroll tax.
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In addition to the 8 weeks of parental leave, the Universal Paid Leave Amendment Act of 2016 also provides 6 weeks to care for a family member and 2 weeks for an employee’s own serious health condition.
Employers will contribute 0.62% of wages for each covered employee. Workers will be eligible to receive up to 90% of their regular pay, up to $1,000 per week. Federal and city employees are not eligible.
The tax collection must begin by March 1, 2019 and the city must begin paying out benefits by March 20, 2020.
The program will allow the city’s workers to take family and medical leave without facing financial calamity, said Councilmember Elissa Silverman (I-At Large) in a statement. “[T]he Council put forth a comprehensive paid family and medical leave program that will help us tackle one of our biggest challenges—ensuring that our city is a more equitable and fair place to live.”
Mayor Muriel Bowser, however, said that she couldn’t support the $250 million tax increase because it mostly benefits Maryland and Virginia residents who work in D.C. “It is wrong to raise District taxes to fund a costly, new government program that sends 66 percent of the benefits outside of the city, and leaves District families behind,” she said in a statement. “If the Council wants to raise $250 million in new taxes, shouldn’t the focus be on District residents and their needs?”
Bowser said she won’t sign the bill into law but did not make clear whether she would actually veto the bill. Instead, she could allow the law to take effect without taking action, according to the Council.
But even if she did veto the bill, it passed 9-4 and therefore has the two-thirds majority required to override a veto. Finally, as with all D.C. legislation, the bill also must go to Congress for review.
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Kate McGovern Tornone is an editor at BLR. She has almost 10 years’ experience covering a variety of employment law topics and currently writes for
I am a very small business and do not make the money to continue. to keep up with all the financial garbage I am required to have for my business. I feel as tho the government is pushing me right out of business
I agree with Mayor Bowser. Why are District businesses paying additional taxes to support residents in Maryland and Virginia simply because they work in DC. These same Maryland and Virginia residents work in the District but pay no taxes. This doesn’t seem fair. The Chairman of the City Counsel is suppose to look out for the DC residents—not continue to tax DC businesses until they are forces to move out of the City.
A bill of this magnitude should have been on the ballot for DC residents to approve or reject.
When does this go into effect?
The tax collection must begin by March 1, 2019 and the city must begin paying out benefits by March 20, 2020.