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E C O N O M I C R E P O R T O F T H E P R E S I D E N T

Economic Report of the President - The American Presidency Project

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protected leave a year to eligible employees under certain defined circumstances.These include the need to care for a newborn, newly adopted, or foster child; fora child, spouse, or parent with a serious health condition; or for a serious healthcondition of the employee himself or herself, including maternity-related disability.The FMLA also requires employers to continue the employee’s healthbenefits during leave. Employees are eligible to take such leave if they haveworked for a covered employer for at least 1 year and have worked for at least1,250 hours over the previous 12 months. Since 1993, millions of workers havetaken advantage of the FMLA to spend necessary time with their families.The experiences of both employers and employees with the FMLA weredocumented in national surveys sponsored by the Department of Labor. Theemployer survey found that one-third of employers (and two-thirds ofemployers in larger worksites) believed that the FMLA had had positiveeffects on their employees’ ability to care for family members. Most employersalso reported that compliance costs were small or negligible and that therewas no noticeable effect on either business or employee performance. Theemployee survey found that the majority of those who took family or medicalleave found it relatively easy to arrange; few reported concerns about jobrelatedconsequences of taking leave. This survey also found that employeeswith annual family incomes between $20,000 and $30,000 were more likelyto take leave than employees with higher incomes, highlighting the importanceof the FMLA to lower income workers.Today, 92 million workers are covered by the FMLA. It has proved to be asignificant advance in helping a larger cross section of working Americansmeet their medical and family caregiving needs for children and for elderlyparents while maintaining their jobs and their economic security.The President has proposed expanding the FMLA to cover businesses withmore than 25 employees (currently the threshold is 50 employees). Thiswould extend coverage to almost 12 million more workers. He has alsoproposed requiring employers to allow FMLA-covered workers to take up to24 hours of leave per year to attend parent-teacher conferences or routinedoctors’ appointments.Work Arrangements That Promote FlexibilityThe desire for greater job flexibility is also leading to new work arrangementsbetween workers and their employers regarding when and where paidwork is performed. An increasingly popular work arrangement is “flextime,”which allows workers to vary the time they begin and end work. In 1997, 28percent of full-time wage and salary workers had flexible work schedules.This was up sharply from 15 percent in 1991. The Federal Government hasled by example in instituting flextime, allowing employees greater discretionin when they work. The President has also proposed a flextime initiative thatChapter 5 | 195

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