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HomeMy WebLinkAbout2.c. Discuss Parental Leave Policy EXECUTIVE SUMMARY City Council Work Session: January 7, 2020 AGENDA ITEM: Paid Parental Leave Policy AGENDA SECTION: Discussion PREPARED BY: Logan Martin, City Administrator Emmy Foster, Assistant City Administrator AGENDA NO. 2.c. ATTACHMENTS: Current Policy, Proposed Policy APPROVED BY: LJM RECOMMENDED ACTION: Discussion BACKGROUND Under federal and state law employees are entitled to 12 weeks of leave for the birth or adoption of a child. During this time the employee's job is protected, and they continue to receive insurance benefits in the same manner as if they were still at work. The City has followed, and will continue to follow, all mandated federal and state laws. At this time, there is no legal requirement that this time be paid. Proposed Policy Update The City currently has a Parental Leave Policy and staff is requesting that the Council consider updating the policy to include a Paid Leave component. At the December 3rd Council Work Session, staff updated the City Council about contract negotiations and shared that 3 of our 4 unions had brought up Paid Parental Leave as an important issue during contract negotiations. Staff has drafted an updated Paid Parental Leave policy to cover 80 hours of paid leave to assist new parents (both fathers and mothers). A Paid Parental Leave policy recognizes family and work-life balance as important and vital to a healthy and productive workforce. This is comparable to other cities in the metro area that have adopted a Paid Parental Leave program, and a list of programs in other cities will be provided at the meeting. Based on Council direction, staff also investigated benefits pro vided to employees in other cities. Cities surveyed averaged a combined 294 hours of sick and vacation time, along with 12 paid holidays per year. Both amounts are in line with what Rosemount provides (combined 288 hours of sick and vacation, 12 holidays). Other policy highlights include that the employee must have been employed by the City for at least one year; Paid Parental Leave is 100% of the employee's normal base wage; the leave begins on the date of birth or placement for adoption; and the program does not apply to sp erm or egg donors. City Goal – Develop the Organization Staff believes that this policy directly supports the City’s goal of Developing the Organization. The City is committed to providing competitive benefits that, when possible, are flexible and responsive to the needs of our employees. Providing these t yp es of benefits enables the City to continue to attract and retain a qualified, engaged and diverse workforce. In addition, the City recognizes the need to support employees as they balance their career and family life. Scenario For an employee who is the birthing mother, they qualify to enroll in our group short-term disability program (STD ). This is an insurance option that employees can elect and is an employee paid insurance option. Employees who qualify to utilize this will have a 2-week waiting period window before the plan begins. In typical situations, employees receive STD pay for weeks 2 - 6 following a standard delivery, and weeks 2 - 8 following a cesarean delivery. The waiting period and the weeks following the STD benefits, are either p aid through employee’s leave banks or unpaid if applicable. I f implemented, the City’s paid leave policy would bridge the two-week gap between the initial birth and the beginning of STD benefits. Impact on Budget and Organization Employee wages are budgeted as year-round positions, so a Paid Parental Leave policy would not require additional funds to be set aside for this program. It is anticipated that an average of 3 employees would use this program each year. The average benefit value per leave would be approximately $3500 in wages, which as previously mentioned are already budgeted for the comp lete year. Staff understands that the City Council prefers to keep initiatives such as these in policy form and not be built into individual contracts. This allows the City to be consistent with all employees and allows for the flexibility to respond to any federal or state law changes. Any future law changes would supersede our policy. RECOMMENDATION This item is on the regular agenda for action on January 7, as it is an important component within the conclusion of union negotiations. Staff recommends the Council discuss the policy and review new information. Page 1 of 1 City of Rosemount Policy 8.65 Parental Leave Policy Number 8.65 Policy Parental Leave An employee who works 20 or more hours per week and has been employed more than one year is entitled to take an unpaid leave of absence in connection with the birth or adoption of a child. The leave may not exceed six (6) weeks, and must begin not more than six (6) weeks after the birth or adoption of the child. The employee is entitled to return to work in the same position and at the same rate of pay the employee was receiving prior to commencement of the leave. If the employee has any Family & Medical Leave eligibility remaining at the time this leave commences, this leave will also count towards Family & Medical Leave. The two leaves will run concurrently until the twelve (12) week Family & Medical Leave is exhausted. An employee may use accrued vacation, or sick leave or compensatory time for either Family & Medical Leave or Parental Leave. However, use of accrued sick leave is not required for the portion of leave counted as parental leave. Approved by: City Council Updated: July 18, 2000 PERSONNEL POLICY City of Rosemount Policy 8.65 Paid Parental Leave Policy Number 8.65 Introduction In recognition of the importance of family and work life integration, it is the policy of the City of Rosemount to provide paid and unpaid parental leave benefits to benefit-earning employees due to the birth of an employee’s child or the placement within an employee’s home of an adopted child. This policy does not apply to foster parents. Purpose To provide parents of all genders time to bond with newborn children or newly-adopted children in hopes of setting children up for long term health and wellbeing. Policy This policy applies to all eligible benefit-earning City employees who have been employed by the City and are benefit earning for a minimum of one continuous year (12 months). This policy is separate and distinct from any other City benefit. Paid parental leave will be provided to regular benefit-earning employees (regardless of gender) who meet eligibility requirements, as described above, and who become biological or adoptive parents in conjunction with childbirth or adoptions occurring on or after January 1, 2020 . Surrogate mothers and sperm or egg donors are excluded from coverage. The paid parental leave benefit provides 100% of the employee’s regular base wage (does not include overtime, supplemental pay, and/or other additional pay) for regularly scheduled work hours, for up to 10 consecutive working days (80 hours maximum). The benefit begins on the employee’s first scheduled work day after the baby’s birth or placement for adoption (pro rata hours for regular part-time employees). Multiple births or adoptions (i.e. twins, triplets), medical conditions, and/or other circumstances will not increase the length of paid leave granted. For the purpose of this benefit, holidays will be counted as a regularly scheduled work day and will be included in the 10-work day (80 hours) count. Employer benefit contributions and leave accruals continue during paid parental leave. However, accruals shall not exceed contractual or ordinance maximums allowed for each respective leave. Paid parental leave will run concurrently with FMLA, MN Parental Leave and/or Short-Term Disability and does not extend the length of these leaves or programs. The paid leave must be used in a solid block of time and works in conjunction with any other leaves available under existing federal and state laws. Any future law changes would not be in addition to but rather run concurrently with the paid leave time in this policy. See the below illustration for a typical 12-week leave, due to the birth or adoption of a baby, with the use of paid parental leave. If applicable, unpaid parental leave will also be provided to eligible employees in accordance with FMLA and the MN Parental Leave Act. Unpaid parental leave must be taken within 12 months of a child’s birth or adoption and eligible employees can choose when the leave will begin. The maximum amount of parental leave (including both paid and unpaid leave) is 12 weeks. Eligible employees intending to use of paid parenting leave must submit a request form (attached) to Human Resources before the anticipated birth or adoption of the child and, preferably, with FMLA (and, if applicable, Short Term Disability insurance) paperwork. In no event will the combination of FMLA and parental leave exceed 12 weeks duration. The employee shall be returned to the position that the employee vacated at the commencement of leave or to a position of like status and pay. Approved by: City Council Updated: January 7, 2020 3 Birth 1 2 4 5 6 7 8 9 10 11 12 weeks (80 hours) 2 Eligible to use Paid Parental Leave. STD leave for birthing parent Vaginal birth (4 wks. STD) C-Section (6 wks. STD) STD is employee paid option Additional unpaid FMLA/Parental leave available Up to 12 weeks total May use accrued leave and/or unpaid leave as applicable. TO BE COMPLETED BY EMPLOYEE Required Form for City of Rosemount Paid Parental Leave Policy Name: ________________________________________________________________ Dates of Leave: __________________________________________________________ I have read and understand the City of Rosemount’s Paid Parental Leave Policy and I have had the opportunity to ask Human Resources staff questions regarding this benefit. I agree to meet the requirements and conditions of the Policy. I will provide the appropriate and necessary documents for the birth or adoption of my child. I understand that a fraudulent request for Paid Parental Leave is grounds for discipline, up to and including discharge. Employee Signature Date