Nearly 80% of small employers favor a national program funded by both employee and employer contributions; small business support for these programs has grown in recent years

WASHINGTON, D.C. – October 24, 2024 – A scientific opinion poll released today shows that an overwhelming majority of small companies support a national paid family and medical leave program funded by a combination of employee and employer contributions.

The survey, conducted by Lake Research Partners on behalf of Small Business Majority and the National Partnership for Women & Families, found that 79% of small businesses support enacting a national paid family leave program that would guarantee employees wage replacement for up to 12 weeks, funded by shared employer and employee contributions of 0.5% each. This represents a 9% increase in support from a previous poll, which was taken at a time when just three states had implemented paid family and medical leave programs. The poll also found that backing for paid family leave programs extends across party lines with large majorities of Democrats (93%), independents (74%) and Republicans (72%) in favor.

“When it comes to paid family and medical leave, it’s not a matter of if small businesses need a standardized policy, it’s a question of how quickly can we make it happen,” said Small Business Majority Founder and CEO John Arensmeyer. “Unfortunately, our existing landscape leaves small businesses to mostly fend for themselves regarding family and medical leave. This patchwork response to a nearly universal problem isn’t working, and it’s hurting small business’ bottom lines. After so many years of indefensible inaction on this issue, we need to move forward with a national paid family and medical leave program so that small businesses and their employees don’t have to choose between caring for loved ones or paying their bills.”

Additionally, the survey found that 56% of small businesses currently offer paid medical leave for serious health needs, while half offer some form of paid parental leave for parents with a newborn child. However, many of the small businesses that offer paid family or medical leave are unable to offer robust policies on par with the three-month leave that would be covered under a potential nationwide program. In fact:

• Among those offering paid medical leave, 67% offer one month or less.
• Among those offering paid leave for pregnancy or childbirth, 54% offer one month or less.
• Among those offering some paid parental leave for a newborn child, 53% offer one month or less.
• Among those offering paid parental leave of adoptive and/or foster parents, 64% offer one month or less.
• Among those offering paid family leave to care for relatives with serious health needs, 71% offer one month or less.

Of those who offer some medical leave or short-term disability leave for employees’ own serious health needs, roughly two-thirds (67%) offer one month or less, and of those who offer some parental leave, more than half (53%) offer one month or less.

“Small business owners know that investments in their staff are what helps keep their businesses thriving and their doors open,” said Jocelyn C. Frye, president of the National Partnership for Women & Families. “The fact that 79 percent of small business owners support paid family leave make this truth crystal clear. No matter their age or the season of life, whether they’re caring for a new child, an elderly loved one or caring for themselves, policies that support work-life balance make a major difference in the lives of employees – and businesses see positive growth as a result.”

Given these limited existing offerings, 80% of small businesses said that they would like to provide more paid leave than their business can currently afford, and are nearly twice as likely (61%) to support a universal paid family and medical leave program over a voluntary insurance program that businesses would choose to buy into (31%).

“I know that offering paid family and medical leave would mean a lot to my staff, but I’m unable to provide that level of benefit because it would have such a huge impact on the bottom line of my business,” said Dr. Kavitha Krishnan, owner of Healing Synergy, LLC, in Franklinton, N.C. “A national paid family and medical leave program would go a long way toward helping me retain great employees without taking on such large costs.”

What’s more, the need for additional paid family and medical leave options among small businesses and their employees isn’t theoretical: nearly half (45%) of small business owners have had employees take extended leave to care for a new child, for their own health needs, or to care for a family member with a serious illness. Many small business owners have also taken extended absences themselves: 43% took more than a week of leave to care for an immediate family member, and 16% took leave to care for an extended family member or friend. Notably, small employers who have had an employee take extended leave in the past year are more likely to support a universal paid family and medical leave program: 73% of employers who have not had an employee take extended leave support a universal paid leave program, compared to 89% of those who have had at least one employee take extended leave, and 92% who have had many employees take extended leave.

The survey reflects a poll of 500 small business owners. It has a margin of error of +/- 4.4%.

For the full poll report, please visit: https://nationalpartnership.org/report/small-businesses-support-national-paid-family-medical-leave-program/.

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About Small Business Majority

Small Business Majority is a national small business organization that empowers America’s diverse entrepreneurs to build a thriving and equitable economy. We engage our network of more than 85,000 small businesses and 1,500 business and community organizations to advocate for public policy solutions and deliver resources to entrepreneurs that promote equitable small business growth. Our deep connections with the small business community along with our scientific research enable us to educate the public about key issues impacting America’s entrepreneurs, with a special focus on advancing the smallest businesses and those facing systemic inequalities. Learn more about us on our website and follow us on Twitter, Facebook and Instagram.

About National Partnership for Women & Families

The National Partnership for Women & Families is a nonprofit, nonpartisan advocacy group dedicated to promoting fairness in the workplace, reproductive health and rights, access to quality, affordable health care, and policies that help all people meet the dual demands of work and family. More information is available at NationalPartnership.org.

Media Contact:

Small Business Majority Contact:
Simon Brown | Director of Public Relations
(202) 535-3229 | sbrown@smallbusinessmajority.org

National Partnership for Women & Families Contact:
Gail Zuagar | Senior Communications Specialist
(202) 238-4829 | gzuagar@nationalpartnership.org