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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