Recently President Biden announced the details for The American Families Plan. This new plan includes many changes to support families across the country, including 12 weeks of family leave. This change could cause many changes for businesses, here’s what you need to know.

What Leave Does The Plan Cover?

While the American Families Plan covers many different measures, one of the most important for businesses covers leave. The plan would guarantee access to 12 weeks of leave at partial pay for parental, family, medical, and safety leave. This would provide workers up to $4,000 per month and would be a requirement for businesses 10 years after the program’s installment. 

Is This Plan New?

The American Families Plan has long been expected from this administration. Expanding availability for leave has been a priority for many that was brought to the surface at the beginning of the COVID-19 pandemic. 

In March of 2020, the previous administration signed the Families First Coronavirus Response Act. This was a temporary solution that obligated employers with fewer than 500 employees to offer two kinds of paid leave to workers affected by the pandemic.

Many employers have seen this on the horizon for some time, and have been preparing for the possibility of this being signed into law. Additionally, many employers already provide some paid leave for their employees – the change in the law may change the length or types of leave covered. 

Growing Support For 12 Weeks of Leave

Many Americans and Democratic politicians have voiced their support for the new plan. “It’s unacceptable—and quite frankly a national disgrace—that in 2021 we are still forcing workers to make these impossible choices,” said Senator Patty Murray (D-WA) in a statement shared with HR Dive. “It’s long past time this country establish a national paid family and medical leave program, and I’m grateful that President Biden recognizes just how critical this is to rebuilding an economy that works for everyone.”

Best Practices You Need To Think About For Your Business

It’s important that businesses start preparing now for an expansion of leave, regardless of if this exact plan is approved. Support for guaranteed paid leave has been growing for many years and is likely to be approved soon. Businesses should follow these best practices to ensure a smooth transition:

  • First determine whether your company will be affected by the approval of this plan. 
  • For affected companies, prepare to review and update your policies to be in line with required leave. 
  • Get in contact with your CFOs regarding the potential financial consequences that your business may experience.
  • Get in contact with HR to prepare for this plan to become law, and to prepare the workforce for expected changes to their policies. 
  • Make sure that your business begins preparation now so it won’t be a difficult transition when it actually becomes law. 

Transcendent Law Group combines the best legal minds, the best business practices with the best technology to obtain the best results. Contact us today to learn more about how we help businesses across the gulf south!