Landmark Paid Leave Bill Passes DC Council, but Fights May Still Remain

Steve Burns
WMAL.com

WASHINGTON – (WMAL) By a 9-4 vote, the District of Columbia’s Council gave the go-ahead to establish one of the country’s most generous paid leave policies, the fifth jurisdiction to implement such a benefits program. Fights could still be ahead, however, with a business community that actively resisted the bill in its current form, and a Mayor who appears reluctant to support the legislation.

The leave program is funded through a .62 percent payroll tax on all businesses. A last-minute effort to replace the new tax with an employer mandate model, essentially letting businesses determine for themselves how to fund it while also offering tax credits to small businesses, was rejected earlier Tuesday.

It would provide all non-federal workers in the District with eight weeks of paid time off to care for a newborn, six weeks to take care of an ailing family member, and two weeks of personal care. The 9-4 vote represents a veto-proof majority over Mayor Muriel Bowser, who has expressed concerns over the new tax and the beneficiaries – analyses showed two-thirds of the money would go to Maryland and Virginia residents. Business groups that were lukewarm to the idea, including the Greater Washington Board of Trade and the D.C. Chamber of Commerce, may also put up a fight.

There were plenty of reservations ahead of the final vote on the Council, even among those who voted for the bill.

“I’m going to vote for it, despite the fact that I think it’s ill-considered and may cause a situation we may regret,” Councilmember Mary Cheh, who supported the employer mandate change, said prior to the vote. “If this is the only path left open to me, I’m going to take it, even though I’m not pleased with this approach.”

Opposition was more vehement among other Councilmembers.

“A ’no’ vote on this legislation is not anti-the concept, just kind of anti-the process,” Councilmember LaRuby May said. “To give a significant portion of this tax to people outside of the District is unconscionable.”

Chairman Phil Mendelson said the legislation is meant to provide an incentive to District businesses.

“We provide a whole lot of benefits in this city to non-residents, including using our streets and so forth,” Mendelson said. “But actually, that’s not such a bad thing because that’s all part of the economic activity that makes up this city.”

The new tax will begin to be collected in 18 months, with implementation to begin in 2020.

Another obstacle could be Capitol Hill. Congress has the ultimate say over all District legislation, and tends to jump in over more controversial social legislation. However, there have been no rumblings of an intervention as of Tuesday’s vote.

“This belief that it’s going to be devastating (for businesses), there’s no basis for it,” Councilmember Elissa Silverman said. “This bill is good for our families, it’s good for our workers, it’s good for our economy. It’s good for our city.”