Fiscal Note
The proposed ordinance change creates a Paid Parental Leave policy for City of Madison employees. Under the new policy, City employees will be entitled to six weeks of paid leave following the birth or adoption of a child. Under the current practice, most employees taking parental leave utilize existing sick leave balances and before going on wage insurance. This structure provides City of Madison employees with 6 weeks of leave; however, while utilizing wage insurance employees will paid 65% of their current salary.
Current data indicates that, on average, approximately 4.5% of the City’s workforce goes on leave for the birth or adoption of a child in any given year. The cost of providing 6 weeks of paid leave for these employees would be approximately $500,000. However, these costs do not require additional funding as the existing budget assumes a full year of funding for all positions. Potential costs from the policy may arise in future years from an increase in sick leave balances, backfill overtime and lost salary savings from individuals who are currently using wage insurance to take 6 weeks of leave.
The most immediate cost implications of the policy will be realized in the Police and Fire Departments where daily minimum staffing levels will require callback overtime when staff are on leave. Based on current trends these costs can be absorbed within existing appropriation in 2019. Additional funding may be needed in future years after data becomes available regarding actual usage.
Title
Creating Section 3.32(16) of the Madison General Ordinances to provide for Paid Parental Leave.
Body
DRAFTER'S ANALYSIS: This ordinance creates a new category of paid employee leave within Section 3.32, MGO. Eligibility for paid parental leave includes any birth or adoption occurring on or after September 1, 2018 with paid parental leave only available on or after January 1, 2019.
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The Common Council of the City of Madison do hereby ordain as follows:
Subsection (16) of Section 3.32 entitled “Absence of Employees from Duty” of the Madison General Ordinances is created to read as follows:
“(16) Paid Parental Leave. All permanent full time and permanent part time employees shall be entitled to six (6) weeks of City paid parental leave.
(a) Employees may use paid parental leave for the birth of the employee’s child or the adoption of a child by the employee. In the case of multiple births or multiple adoptions occurring at the same time, employees will be entitled to only one (1) six-week period of paid leave.
(b) The period of leave must occur within one (1) year of the date of the birth and/or date of the adoption.
(c) The employee shall apply for such leave, in writing, to the employee’s Department/Division Head. The Human Resources Director, or their designee, must approve the leave.
(d) Paid parental leave under this section will run concurrently with any state or federal FMLA or City designated leave. In the event the employee is unable to return to work at the end of the six (6) week period of paid parental leave, the employee may use other available paid or unpaid leave to remain off work as is permissible under any State, Federal and/or City leave laws or policies.”