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CNN – Business/Consumer



THE CRISIS AT KYTE BABY MIGHT NOT HAVE HAPPENED IF THE US HAD A MANDATED PAID
LEAVE POLICY FOR NEW PARENTS

By CNN Newsource

Published January 23, 2024 8:13 am


By Jeanne Sahadi, CNN

New York (CNN) — The crisis that has enveloped clothing company Kyte Baby this
week might not have happened if the United States had a national paid parental
leave policy in place.



Company founder and CEO Ying Liu was forced to offer two public apologies after
making, in her words, a “terrible decision” to deny an employee more work
flexibility after her adopted newborn landed in neonatal intensive care.

The United States is the only developed economy among the 38 members of the
Organization for Economic Cooperation and Development not to provide national
paid maternal leave and job protection, never mind paid paternal or parental
leave.

“Across the OECD, statutory rights to paid maternity leave are provided with an
average length of 18.5 weeks as of April 2022, ranging from 43 weeks in Greece
(the longest entitlement) to none in the United States — the only OECD member
with no national provision of paid maternity leave,” the OECD states on its
site.



What’s more, almost all OECD countries have paid leave programs around
childbirth for mothers and fathers, whether they are birth parents, adoptive
parents or same sex parents. Besides pay, the programs offer to protect one’s
job while on leave around the time of childbirth and the first few months after,
according to the OECD.



Looking more globally, “approximately 83% of countries guarantee at least 12
weeks of paid leave to parents who give birth,” according to the paid leave
advocacy group FamilyValues@Work.




WHAT US WORKERS GET



US-based employees, by contrast, have to figure out which, if any, options might
be available to them from a complex, confusing patchwork of programs.



“Nobody knows what they have access to,” said paid leave expert Vicki Shabo, a
fellow at the policy research think tank New America.

Nine US states and the District of Columbia currently have paid family leave
laws on the books, and four more states have similar laws that will go into
effect in the next couple of years, according to a New America report.

At the employer level, only 27% of US workers in the private sector have access
to paid family leave through their job, up from 12% a decade ago, according to
the Bureau of Labor Statistics. (Among state and local government workers, 28%
have access to paid family leave today.)



In recent years, in a bid to boost talent attraction and retention, mostly
larger employers have been expanding their paid family leave programs, not just
for birth mothers but also fathers, working parents in same sex couples, and
employees who adopt or foster a child.



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Among companies with more than 500 employees, 75% now offer or plan to offer
paid parental leave in 2024, up from 70% last year and from 46% in 2018,
according to HR consulting firm Mercer. The median amount of paid time off is
seven weeks, up from six in prior surveys Mercer has conducted.

And, according to a recent survey by HR consulting firm WTW, nearly 20% of the
employers that currently offer paid leave for parents plan to make those leave
policies more generous in the next two years.

At the national level, however, there is still not a federal program for paid
leave, despite legislative efforts in recent years to pass one in Congress.

At present, the only federal mandate on the books is the three-decades-old
Family and Medical Leave Act, which allows employees to take up to 12 weeks of
unpaid but job-protected leave a year — not just for childbirth but for a range
of needs, including dealing with one’s own or a family member’s illness or with
caregiving needs when a family member is in the military and gets deployed.

Most people, of course, can’t afford to take much unpaid leave. But even if they
could, due to its eligibility rules, the FMLA doesn’t cover a large swath of the
workforce. In 2020, 44% of workers weren’t eligible for FMLA leave because
they didn’t have sufficient tenure on the job, didn’t work enough hours and/or
their work site was too small, according to the US Department of Labor. Given
that the Kyte Baby employee in question had only worked at the company for “a
little over 7 months,” the company wrote in an email to CNN, she likely would
not have qualified for FMLA coverage.




UNDER PRESSURE TO CHANGE



In the wake of its troubles this weekend, Kyte Baby’s CEO told CNN the company
will now expand its maternity leave policy, which currently only offers two to
four weeks with pay depending on tenure.

And perhaps it may also follow in the footsteps of other employers when it comes
workplace flexibility.

The initial video on TikTok that alerted the world to the Kyte Baby situation
alleged that the new mother was “fired” after proposing she be allowed to work
remotely. But the company told CNN that “[s]he did propose a remote option for
her job, but given that her role was largely on-site, at that time, we did not
feel that the proposed plan would fulfill the responsibilities of her current
position. We told her we understood her situation and informed her that her job
would be here if and when she opted to return. However, upon reflection, we
should have taken more steps to accommodate her situation.”

One trend that workplace experts expect to see in 2024 is more employers coming
up with different ways to provide equity in their workplace policies so
employees whose jobs are not remote friendly can enjoy more flexibility on par
with that of their desk-based colleagues — for instance, by providing them with
four-day workweeks or more flexibility in scheduling their hours.

But as executives at Kyte Baby are no doubt learning the hard way, it is always
better to proactively offer these types of new or expanded benefits before a
very public crisis forces their hand and potentially threatens their brand.

CNN’s Eva Rothenberg contributed to this story.

The-CNN-Wire
™ & © 2024 Cable News Network, Inc., a Warner Bros. Discovery Company. All
rights reserved.

Article Topic Follows: CNN – Business/Consumer


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