Investment Banker: Invest in Paid Family Leave
PHOTO: Several states, including New York, are considering laws that would offer employees paid family leave to care for the newborn or seriously ill. A high-powered Wall Street executive is adding his voice to the movement. Photo credit: Wikimedia Commons
January 6, 2014
NEW YORK - A strong voice from Wall Street is weighing in on the importance of paid family leave for parents of newborn children and people caring for seriously ill or elderly relatives. Tom Nides served as Deputy Secretary of State and recently moved to Morgan Stanley. The investment banker supports legislation that would create employee-paycheck deduction pools that would compensate workers during family leaves. Such bills have been introduced in Congress and in Albany, Nides said.
"For New Yorkers, it's a huge benefit and a huge plus. We gotta move this debate forward. And by the way, it's the right thing to do," he said.
Last Wednesday, Rhode Island became the third state to offer workers paid family leave, along with New Jersey and California. New York Sen. Kristen Gillibrand and Connecticut Rep. Rosa DeLauro, both Democrats, have introduced federal legislation, but so far no Republicans have endorsed it.
Some business groups have said that even though family leave wouldn't be paid by taxpayers or employers but by paycheck deductions, it should be voluntary, not government-mandated. Nides said it is an idea whose time has come.
"I am totally aware, as a businessperson and as someone who's been involved in public policy for a long time, that this is difficult for a lot of companies, this is expensive," Nides said. "But we've got to begin having this conversation in the United States."
Nides said worker productivity will rise and employers will recognize the goodwill that comes out of paying for family leave time off.
"There's no question that studies have shown that individuals given the opportunity to have a few weeks to take care of a newborn or a sick family member say it's critically important to the productivity of that individual," he added.
America lags behind many other developed nations in providing paid family leave.