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Federal Paid Leave for Parental, Caregiver, and Personal Medical Circumstances

v1.0 · Created May 7, 2026 for v3.2.0 (initial dedicated treatment of paid family time as Pillar Eight, formalizing the FAMILY Act-aligned commitment that prior iterations had documented as Direction A in the Gender Pay Gap and Indirect Mechanisms document and as candidate item in the Adjacent Pillars Under Development document) · Jason Robertson · Ohio · 2026 · Updated May 10, 2026 for v3.7.19 (canonical employer/employee split documented: 0.25%/0.15%) · Updated May 10, 2026 for v3.7.19 (canonical employer/employee split documented: 0.25% / 0.15%)

# Why This Pillar Exists

The United States is one of very few developed nations without a federal paid family leave commitment. The Family and Medical Leave Act of 1993 (FMLA, the existing federal statute) provides only unpaid leave to a subset of workers, conditioned on employer size and tenure. Workers who take FMLA leave receive no wage replacement during the leave period. The result is well-documented: many workers cannot afford to take leave they are legally entitled to; women disproportionately bear the leave-without-wage-replacement burden, contributing to the documented motherhood penalty in lifetime earnings; informal caregivers for elderly or disabled family members face similar wage-replacement gaps; workers facing personal medical episodes must often choose between health and continued income.

Several U.S. states have implemented their own paid family leave programs (California, New Jersey, New York, Washington, Massachusetts, Connecticut, Oregon, Colorado, Maryland, Delaware, and others), demonstrating that the architecture is workable at the state level. The federal-level commitment provides uniform coverage regardless of state of residence, removing a geographic disparity in workforce-related family support.

Prior iterations of the platform documented paid family leave as Direction A in the Gender Pay Gap analysis and as a candidate item in the Adjacent Pillars Under Development document. v3.2.0 elevates the commitment from candidate to Pillar Eight, formalizing it within the platform's federal contribution architecture.

# What This Pillar Provides

Universal Paid Family Time covers three categories of leave, consistent with the FAMILY Act framework that this Pillar is structurally aligned with.

## Parental leave

Parental leave covers the period following the birth, adoption, or foster placement of a child. Eligible workers receive wage replacement during leave at a formula consistent with state program practice (typically a sliding scale producing higher replacement rates for lower earners and lower replacement rates for higher earners, with an absolute weekly maximum). Leave duration is up to twelve weeks per qualifying event. Both parents in a household are independently eligible.

## Caregiver leave

Caregiver leave covers the period during which an eligible worker provides care to a seriously ill family member, including a spouse, child, parent, or other family relationship consistent with FMLA's existing definition. Wage replacement follows the same formula as parental leave. Leave duration is up to twelve weeks per qualifying twelve-month period. This category addresses the informal-caregiver wage-replacement gap previously identified in the Aging In Place Implications document and the Multigenerational Households document.

## Personal medical leave

Personal medical leave covers the period during which an eligible worker is unable to perform their job due to a personal serious health condition. Wage replacement follows the same formula. Leave duration is up to twelve weeks per qualifying twelve-month period. This category interacts with but does not replace short-term disability insurance or the platform's universal healthcare coverage; healthcare coverage addresses medical treatment cost while paid family time addresses lost-wage replacement during recovery.

# Architecture: Contribution Mechanism

Pillar Eight is funded through a dedicated payroll contribution structurally parallel to the platform's other federal contributions. The contribution is split 0.25 percent employer and 0.15 percent employee, producing a combined 0.4 percent of covered wages. This 62.5 / 37.5 split follows the platform's standard contribution convention: employer share is approximately 60 to 67 percent of combined rate across pillars (Healthcare 67 / 33 at 4 / 2 = 6 percent; Childcare 62 / 38 at 0.8 / 0.5 = 1.3 percent; Mental Health 63 / 37 at 0.5 / 0.3 = 0.8 percent; Long-Term Care 60 / 40 at 0.6 / 0.4 = 1.0 percent). The 0.4 percent combined rate is calibrated to fund the program at approximately forty to sixty billion dollars per year at maturity (estimate range), consistent with FAMILY Act cost modeling and with adjusted scaling from state program data.

## Application to self-employed and gig workers

Self-employed workers and gig workers pay the combined rate (both employer-side and employee-side portions) on net self-employment income, with the employer-side portion deductible from self-employment income for federal income tax calculation. This treatment parallels the FICA (Federal Insurance Contributions Act) convention split applied to the platform's other federal contributions, as documented in the Self-Employed and Gig Worker Implementation document. Self-employed workers benefit from the same paid leave eligibility as W-2 workers; benefits are calculated on the same net-earnings base used for contribution.

## Benefit administration

The federal entity administering paid family time benefits operates structurally parallel to SSA (Social Security Administration) existing benefit-claim-and-payment infrastructure. Workers file claims when leave begins; benefits are paid directly to workers through the same deposit infrastructure used for tax refunds. Employers verify employment and earnings history; the worker's ongoing earnings record (built through payroll contribution) establishes benefit eligibility and amount. Specific operational implementation is rule-making work during enactment; the architectural intent is consistency with existing federal benefit administration patterns.

# Cost

Annual program cost is estimated at approximately forty to sixty billion dollars per year at maturity, consistent with FAMILY Act cost modeling and with adjusted scaling from state program data. The combined 0.4 percent payroll contribution rate produces revenue calibrated to this cost range. The cost estimate has the same external-review status as other platform cost estimates: subject to validation by labor economists with expertise in paid leave program economics. The estimate is added as a new entry in the Open Issues Registry tracking the validation need.

## Comparison to existing federal commitments

For scale comparison: the universal healthcare contribution rate is six percent combined; the universal childcare contribution is at the architectural-intent level pending calibration; the existing Social Security contribution under FICA is approximately twelve percent combined; the existing Medicare contribution is approximately three percent combined. The Pillar Eight 0.4 percent combined rate is small relative to these existing contributions; adding it represents an approximately three percent relative increase to existing combined payroll contributions. The smallness of the rate reflects the smaller-scope nature of the program (short-duration leave for specific qualifying events) compared to the larger-scope programs (continuous healthcare coverage, continuous retirement accumulation).

# Interaction With Existing State Programs

Several states operate their own paid family leave programs, funded through state-level payroll contributions and providing benefits to workers in those states. The federal Pillar Eight commitment must take a clear position on how it interacts with existing state programs to avoid coverage duplication or gaps.

## Federal-as-floor approach

The platform's architectural intent is the federal-as-floor approach. The federal Pillar Eight commitment establishes the minimum benefit available to all U.S. workers regardless of state of residence. State programs that provide benefits exceeding the federal floor (longer duration, higher wage replacement rate, broader eligibility) continue to operate; their excess benefits supplement the federal benefit rather than replace it. Workers in states with their own programs receive the higher of the federal benefit or the state benefit. State payroll contributions for state-program funding may be reduced to reflect the federal contribution now covering the floor portion; specific reduction calibration is state implementation work.

## Why federal-as-floor rather than federal-as-replacement

The federal-as-floor approach respects state-level policy experimentation that has produced the existing state programs. State programs that operate above the federal floor reflect democratic choices in those states; federal preemption would override those choices. The federal-as-floor approach also avoids coverage gaps during the transition window: workers in states with existing programs do not face benefit reduction; workers in states without programs gain benefits where they previously had none.

# Worked Example: Parental Leave

Consider a working parent earning fifty thousand dollars per year who takes parental leave following the birth of a child. Under Pillar Eight, the parent files a leave claim with the federal program when leave begins. Wage replacement follows the sliding-scale formula: at fifty thousand dollars annual earnings, the replacement rate is approximately seventy percent of typical weekly earnings, producing weekly benefits of approximately six hundred seventy dollars. Twelve weeks of leave produces total benefits of approximately eight thousand dollars. The parent's job protection is preserved through existing FMLA mechanisms. The other parent in the household, if employed, may independently take their own twelve weeks of parental leave concurrently or sequentially, supporting joint care responsibility.

# Worked Example: Caregiver Leave

Consider a worker earning forty thousand dollars per year whose elderly parent has been hospitalized following a serious medical event and requires recovery support at home. Under Pillar Eight, the worker files a caregiver leave claim, providing documentation of the parent's qualifying medical condition. Wage replacement follows the same sliding-scale formula: at forty thousand dollars annual earnings, the replacement rate is approximately seventy-five percent, producing weekly benefits of approximately five hundred eighty dollars. The worker takes eight weeks of leave to support parent recovery; total benefits during leave are approximately four thousand six hundred dollars. Without Pillar Eight, this worker would either lose income during the leave period (creating household financial hardship) or be unable to take leave (leaving the parent without family caregiving support, potentially requiring more expensive professional in-home care or premature institutional placement).

# What Pillar Eight Does Not Address

Pillar Eight provides wage replacement during qualifying leave but does not address related concerns the platform's broader architecture or subsequent design work would need to engage. Job protection for workers taking leave depends on the existing FMLA framework which has employer-size thresholds (workers at firms below the FMLA threshold lack federal job protection); the platform's position is that FMLA job protection should be extended to all workers as a complementary commitment, but this requires a separate FMLA reauthorization rather than being built into Pillar Eight directly. Tax credits for caregivers and Social Security caregiver credits for caregiving years are separate federal proposals (the Credit for Caring Act and various Social Security caregiver credit proposals) that address related but distinct concerns; Pillar Eight does not include these. Pillar Eight applies to U.S. workers eligible to participate in the federal payroll contribution system; non-citizen worker eligibility follows the platform's broader treatment in the Non-Citizens And Platform Eligibility document.

# Cross-References

This pillar document complements the master We The People Platform document Pillar Eight section. The pillar's architectural foundation builds on prior platform analysis in the Gender Pay Gap and Indirect Mechanisms document (which originated the Direction A treatment now formalized as Pillar Eight), the Aging In Place Implications document (which identified the informal-caregiver wage-replacement gap), and the Multigenerational Households document (which identified caregiver support as an unaddressed concern). The contribution architecture aligns with the Federal Income Tax Revenue Modified Architecture document and the Self-Employed and Gig Worker Implementation document. The fiscal impact is documented in the Federal Fiscal Impact Analysis document. The pillar's federal-as-floor interaction with state programs is consistent with the platform's broader federalism orientation in the State Level Cooperation Requirements document.