U.S. Chamber Warns Proposal Will Lead to Higher Taxes on Business

Proposal Will Lead to Higher Taxes on Business

WASHINGTON, D.C.—The United States Chamber of Commerce today denounced a Department of Labor (DOL) proposal to pay parents taking voluntary leaves of absence out of state unemployment dollars funded by business.

"Unlawfully diverting money from the unemployed and giving it to parents will slash holes in an important safety net for workers," said Randel Johnson, Chamber vice president of labor and employee benefits. "If the Administration wants to undercut the unemployment insurance fund, there should be a full public debate first."

In earlier written comments to the Labor Department, the Chamber noted that the DOL's own estimate for the price tag for new benefits for an estimated six million workers taking voluntary family or medical leave could cost $36 billion every year. States will be forced to look for other funding sources – most likely in the form of increased taxes or reduced benefits for the unemployed – to pay that cost.

"The proposal will pit the unemployed against their more fortunate neighbors who have a job, but wish to take a paid leave of absence, in a competition for limited funds," said Johnson. "If this Administration wants to provide paid leave to employees away from their work, it should submit its proposal to the Congress and finance it honestly – not by robbing a fund that has been paid for by employers and set aside for unemployed workers."

The Chamber will be joining the LPA and the Society for Human Resource Management in suing the Department of Labor over the rule.

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region.

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