Steve Burns
WMAL.com

WASHINGTON – (WMAL) Two D.C. Councilmembers are floating a last-minute change to how the District’s Paid Family Leave program would be paid for, setting the scene for what could be a political showdown on the last day of the legislative session.

A plan introduced by Councilmembers Jack Evans and Mary Cheh would do away with the bill’s main funding mechanism, a .62 percent payroll tax on all D.C. businesses. Instead, it would utilize the employer mandate method, requiring businesses to provide the time off but allowing them to determine for themselves how to pay for it. Evans’ and Cheh’s alternative also allows for tax credits to small businesses to help soften the blow of funding the paid time off.

“It gets into effect much quicker, it’s simpler to administrate, and it’s cheaper,” Evans told reporters. “Our program will start next October 1. In the (original) program, no benefits will be paid out for three years.”

Both plans maintain the same amount of paid time off: eight weeks for new parents, six to care for an ailing family member, and two weeks of personal care. However, Council Chairman Phil Mendelson, the main proponent of the original legislation, said he worries the employer mandate would put a disproportionate burden on small businesses.

“The small businesses have a greater financial difficulty paying for the benefits that are prescribed,” Mendelson said. “Through this broad payroll tax, there is a cross-subsidization. That, I believe, is lost with (Evans’ and Cheh’s) proposal.”

Mendelson also defended the three-year wait for benefits, claiming businesses need the transition time.

“In fact, that means three years of phase-in, three years of adjustment, three years of getting used to it by businesses.”

The alternative plan floated by Cheh and Evans includes a $200 tax credit per employee to businesses with fewer than 70 employees, and an option for businesses to petition for hardships. Mendelson, though, questioned whether the money would be available to fund the credit.

“That’s money that we would have to find from existing appropriations, at a time when there’s competition for spending on homelessness, affordable housing, and WMATA,” he said.

The original version of the bill passed on a preliminary vote two weeks ago on an 11-2 vote. Evans and Councilmember Yvette Alexander were the lone “no” votes. That allows for a veto-proof majority if the same vote totals hold.

Mendelson said he had not heard Mayor Muriel Bowser’s stance on his plan, most recently speaking to her last week. Evans, however, said he spoke to her Monday morning.

“She does not support the Mendelson bill,” Evans said. “But she does support our bill.”

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