United States:
Senators Introduced Bill Providing Tax Incentives For Offering Paid Leave
18 July 2014
by
Littler Mendelson
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As more states institute mandatory paid leave laws, two U.S.
Senators have introduced legislation that would provide employers
with a tax incentive for offering paid time off. On July 16,
Senators Deb Fischer (R-NE) and Angus King (I-ME) introduced the
Strong Families Act (S. 2618), a bipartisan measure that would
create a 25% non-refundable employer tax credit for each hour of
paid leave provided to employees, capped at $4,000 per year for
each qualified employee. To be eligible, the employer must
offer at least four weeks of paid leave. Such leave would
have to be available on an hourly basis, and distinct from vacation
or sick leave. Employers of any size would qualify for the tax
credit. Finally, the bill includes anti-retaliation
provisions.
In a press release, Sen. Fischer
said:
This hourly paid leave proposal
provides families with the flexibility to take paid time to meet
family medical and caregiving obligations. Importantly, our
bipartisan plan is also a balanced measure that respects
employers' costs of doing business with employee needs. The
Strong Families Act creates a meaningful incentive structure to
encourage employers to provide working families, including hourly
workers, the chance to take paid time off. This plan will
strengthen our families, our communities, and our
nation.
A summary of the measure can be accessed here.
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