The Washington, D.C., City Council passed landmark legislation this week that would provide all private sector D.C. employees with eight weeks of paid leave after the birth or adoption of a child, two weeks of paid personal sick leave, and six additional weeks of paid leave for caring for sick family members. The Universal Paid Leave Amendment Act of 2016 (Bill 21-415) endeavors to create one of the most expansive leave benefits packages in the country.
The program would be financed by a .62 percent payroll tax on employers, which many argue will primarily benefit Maryland and Virginia residents who work in the city, while causing businesses to seek to move employees into their Maryland and Virginia offices. Although District of Columbia Mayor Muriel Bowser has expressed great skepticism about the bill, which she believes will be a net negative for the District, it is unlikely that she will veto it as it was passed by a veto-proof majority and will probably just allow it to become effective without signing. Employers inside the Beltway should keep an eye on the developments. If enacted, the measure will take effect in about three years, which will give the City time to establish the requisite fund.