Paid family and medical leave benefits families, businesses, and the state’s economy by keeping Tennesseans healthy, financially secure, and connected to the workforce.
In 2023, Tennessee joined a growing number of Southern states in pass a bill Allow private insurance companies to sell paid family leave products, which employers can choose to purchase. These bills are typically based on Model legislation from the National Council of Insurance Legislatorsan insurance industry advocacy organization, which held its spring meeting here in Nashville earlier this year.
The passage of this policy in Tennessee has been touted as a way to increase access to paid family leave without impacting businesses. As a small business owner in Tennessee, I disagree.
I own a restaurant and small business in Nashville and it can be challenging when an employee needs time off for an injury or unexpected circumstance. Even one week of unplanned leave could put a dent in our budget. Despite unexpected circumstances, we all have bills to pay. Unlike the private insurance approach, a more comprehensive paid family and medical leave policy would allow us to help our employees while also supporting our business.
Data supports cost sharing for paid leave
To substantially increase access to paid family and medical leave, the data-driven approach already in place in More than a dozen states is to create a state program that shares costs and reduces the administrative burden on companies.
If Tennessee were to pass such a policy, employers and employees would pay a small amount, typically similar to a cup of coffee every weekto participate in a state-run program that provides guaranteed benefits when leave is needed to address serious health needs or care for a new child.
In other states, these programs have been It has been proven to benefit businesses increasing productivity, morale, recruitment and retention, which is especially critical in today’s highly competitive job market.
In a state, 91% of employers Paid family leave was reported to have had a positive or neutral effect on profitability. A comprehensive approach would especially help small businesses like mine remain competitive with larger companies. In fact, several states allow small businesses to participate in the program and provide paid leave to their employees at no cost to the company.
Paid private family leave hurts small businesses
On the other hand, there is still no reliable data showing that many employers will be able to purchase paid family leave insurance. As a small business owner, my tight budget makes it difficult for me to afford a paid leave insurance policy on my own without additional help.
However, with a comprehensive paid family and medical leave program that removes the administrative burden and allows me to participate at little to no cost, I could finally provide this much-needed benefit to my employees.
For small business owners like me, paid leave means keeping valuable employees on my team, rather than losing them to competitors who are better suited to meet their medical or caregiving needs.
For our families, paid leave means being able to care for a loved one during chemotherapy or recovering from childbirth, without worrying about how to make ends meet. Our state legislators must pass a comprehensive policy to ensure that all Tennessee businesses and families can receive the many economic benefits of paid leave.
Anna Myint is the owner of International Market in Nashville..