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PAID TIME OFF

Today, Americans work more than 45 hours per week on average, mostly without paid overtime, and 50 or 60 hour weeks are not uncommon.

Many Americans receive less than two weeks paid vacation annually, and some receive no vacation at all. 

In an economy where people change jobs frequently, most don’t work for the same enterprise long enough to qualify for the additional vacation weeks traditionally granted after 10 or 20 years of service, and those that do risk losing those hard-earned extra weeks when they change jobs.  

Worse still, 50% of American workers have no paid sick leave, and less than a third receive paid time-off to care for children and other loved ones.

In a time when two-parent wage earner and single-parent wage earner households are the norm, the need for paid time-off and flexible work schedules to balance professional and family obligations has never been greater.

Throughout much of the rest of the world, foreign employees of American companies are better able to cope with these demands because local laws and labor agreements provide for shorter work weeks (35 hours in France); four to six weeks paid vacation (Japan, Australia, and most European Union countries); flexible work schedules (the United Kingdom); and paid short and long-term leave policies for illness, pregnancy, and other home-life obligations. 

Meanwhile, Americans work longer than their counterparts in every other industrialized country (two weeks longer than Japanese workers, two months longer than German workers).

American companies say this is necessary for Americans to compete on the world market, but the same companies operate profitably in countries where local laws and labor agreements guarantee employees generous paid-time off benefits.  There is a double standard:  Americans working for the same company spend more time on the job than their foreign co-workers for roughly the same compensation.

Americans deserve paid time-off benefits at least as good as the best of those offered by Americas major trading partners. But unless the Government sets minimum paid time-off standards, companies have no incentive to provide their American workers with the same benefits they provide their foreign employees.

A number of U.S. states have started to pass laws guaranteeing all members of the workforce paid short and long term leave for illness and care of loved ones.  To ensure all Americans are treated equally, we need national paid time-off standards that reward all employees, not just those foreign employees fortunate enough to live in countries with employee-friendly paid time-off policies.  

 Congress should amend the Fair Labor Standards Act to:

1. Guarantee all Americans a minimum of:

- Six weeks paid vacation – Six weeks is standard throughout much of the industrialized world.  Numerous studies have shown that vacations reduce stress-related absenteeism and increase employee productivity.  A national standard will ensure Americans do not lose vacation time when changing jobs, and will ensure companies that offer fair vacation policies are not placed in a competitive disadvantage against those that don’t.   

- 14 days  paid “short-term” leave for illness, child or elder care, or other personal business -  Traditionally known as “sick leave”, this benefit has traditionally been offered by many companies.  Several states are considering legislation to extend “sick leave” to all members of the workforce, and to give employees the flexibility to use “sick days” for personal obligations other than illness.  To maximize flexibility to take care of personal matters that may require less than a full day’s leave (for example, to attend a parent-teacher conference), employees should be able to use such time in one hour increments. 

- 26 weeks  paid “long-term” leave for maternity/paternity, extended  illness, or family medical emergenciesTraditionally known as “long term disability”, this benefit is also offered by many companies, but is typically limited to personal illness. To give workers flexibility to take extended time off for other family medical emergencies, Congress passed the Family and Medical Leave Act (FMLA) in 1993.  But most Americans can’t afford to use FMLA because employees must take leave without pay. A number of states (for example, California, Massachusetts) now have or are considering extended paid leave legislation.  Congress should amend the FMLA so all Americans can afford to use it.  To spread the risk and ensure all employers, including small business owners can participate, the program should be financed by a business payroll or gross-receipts tax.  (For example, the proposed Massachusetts benefit, which would pay employees their full salary up to $750 per week, was estimated to cost between $1.50 and $2.50 per week per employee.) (Boston Globe, April 23, 2006)

- Flexible work schedules (Flex-time) – Flexibility to adjust arrival and departure times is especially important to employees with inflexible personal commitments (such as dropping off or picking up children from school).  Employers currently offering such arrangements typically set core hours (for example, 10 a.m. to 3 p.m.) in which all employees are expected to be on-site, and give employees flexibility concerning arrival and departure times outside the core (for example, 7:00 to 3:00, 10: 00 to 6:00, etc.).  Many “white collar” workers already enjoy such privileges. Most “blue collar” workers do not.  All Americans deserve such flexibility. One note of caution: a key feature of such arrangements is that decisions concerning arrival and departure times are left to employees, not employers.  Recently, the Bush Administration proposed so-called “flex-time” arrangements that would force employees to work more than forty hours in a given week in exchange for mandatory comp time the following week.  Such arrangements benefit employers, not the employees, and are designed to help employers escape paying overtime wages.  Such arrangements do nothing to help employees cope with life commitments and should not be permitted.

2. Establish a four-day, 32-hour work week.

The 8-hour day, 40-hour work week was a major step forward when it was established by law in 1940.  Recently, a number of countries have started to reduce the work week below the 40 hour threshold through national laws and labor agreements, and some American companies have successfully experimented with shorter work weeks.  With many American families having two full-time wage earners, and others headed by single-parent wage earners, a three-day weekend is necessary to give Americans adequate time with their families or to engage in personal pursuits.