This small state has a big problem keeping pace with its neighbors on paid family leave.

A statewide paid family leave program can help small businesses stay competitive and grow. (Getty image)

What a difference a decade makes. In 2013, Rhode Island led the country by instituting one of the first state-managed paid family leave programs. It meant workers didn’t have to choose between keeping their job and caring for an ill family member. Small businesses gained a much-needed resource to avoid high cost losses due to staff turnover and the ability to offer a highly attractive employee benefit at zero additional cost.   

But over the years, the program has not kept pace with the needs of small businesses and their employees. It’s hard to run a business without a reliable workforce, and it’s hard to create competitive jobs without the resources to offer benefits. This lack of support depresses the economic development of small businesses, minority-owned businesses especially. It’s one of the reasons why Rhode Island’s BIPOC business ownership rate is less than half of the national average (9.3% vs 20.4%). The Rhode Island Black Business Association is one of the state’s largest associations of microenterprises and sole proprietors. We urge state leaders to finally approve basic updates to the paid family leave program, bringing it at last up to standard with best practices and small business needs. 

R.I. Senate approves expanded family leave bill in 31-3 vote

Proposed legislation (H7171/S2121) expands paid family leave in three critical ways. 

First, it expands the number of weeks a worker can take leave to 12 weeks, a policy standard and best practice. Currently, the limit is six weeks, the shortest in the country. 

Second, the bill expands the definition of caregiver, recognizing that family is not only your parents, grandparents, or child. As proposed, the definition can also include siblings and “persons who stand in loco parentis,’ a Latin phrase meaning they hold all the responsibilities of a caregiver, but may not have a biological or legal relationship. This inclusive language change would allow members of the immigrant, LGBTQ+, and foster care communities to designate a caretaker and use this critical benefit

Third, the bill would raise the wage replacement by the cost of a cup of coffee, thus helping low and modest-income workers be able to meet their basic needs while out on leave caring for a loved one. 

Data shows that an effective statewide paid family leave program helps small businesses grow. A national outcomes analysis found that when states provide an effective paid family leave program, small businesses experienced on average 5% greater revenue and 7% greater profit per full-time employee. Compare that to the 50% to 150% loss experienced when a full time employee leaves permanently.

Some claim that improving our paid family leave program burdens business owners. But this view privileges large businesses at the expense of Rhode Island’s locally owned mom and pop shops. Unlike a small enterprise, a big business can mitigate and prevent losses resulting from staff turnover since they have the resources to provide their own paid family leave program. Large companies also have an advantage over small businesses when it comes to recruiting and retaining talented workers. Working Rhode Islanders are looking for jobs that not only pay a living wage but offer good benefits.  

Our neighbors understand the importance of an effective paid family leave program. Connecticut and Massachusetts provide 12 weeks; Maine recently approved its program at 12 weeks. New York and New Jersey also set leave at 12 weeks. Why can’t Rhode Island’s small business owners and entrepreneurs enjoy the same resources and supports as their counterparts just across the border? That economic development and resulting prosperity should happen here in Rhode Island. 

A healthy workforce makes running a successful business possible. Paid family leave provides the resources to retain but also recruit talented workers, without any additional cost to the business owner. The proposed expansions to our paid family leave program will help Rhode Island small businesses not only grow but thrive. The Rhode Island Senate already acted in support of the small business community by passing S2121 in March. The Rhode Island Black Business Association and our members are urging the House to follow suit before it’s too late this year. Our small businesses can’t wait any longer — expand paid family leave now.

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