Remember when the Family Medical Leave Act was just a twinkle in some Congressman’s eye?  Politicians promised us that it would not impose much of a burden on employers because it would be unpaid leave. 

Enter California’s FTDI Benefits.  Last January, employers began deducting a portion of every employee’s payroll income to fund a new benefit that, as of July 2004, will serve as a wage replacement to “cover periods when a worker is unable to work because of need to care for an ill child, spouse, parent or domestic partner, or for the birth, adoption or foster care placement of a child.” 

“Don’t worry.”  The politicians have said.  “Employers have nothing to object to because this new benefit will be paid entirely through employee contributions.”  But wary employers are seeing red flags.  How long will it be until employers are expected to ante up and make a contribution to paid leave as well?  Indeed, national initiatives are already in place to enact paid Family and Medical Leave as part of the FMLA, (see www.simpleliving.net/timeday/ as an example).

One reason employers are leery of the new law is that in spite of all of the good it is intended to accomplish for families who truly need the benefit, and who will sincerely use it as it was intended, there appears to be a lot of room for abuse.  Combine this with the threat with the of additional “hurdles” for employers to clear as they comply with the expectations of this new law—everything from extra paperwork to managing expenses from lost productivity and training of replacement employees—and you’ll understand why many employers regard FTDI with skepticism. 

The bright spot with regard to FTDI Benefits is the fact that PEOs already have solutions in place that will limit the potential negative impact for your business when an employee needs a leave of absence.  A PEO can provide temporary or temp-to-hire workers for almost any job description.  A brief consultation with HR Outsourcing, Inc. is a terrific way for you to have a proactive plan in your back pocket in the event that one of your employees needs to take an emergency leave.  With a plan in mind, you won’t be left hanging.  It’s Risk Management at its best.