Senator Marco Rubio (R-FL) and first daughter Ivanka Trump have teamed up to develop a paid parental leave program in the United States.  While the plan is in its infancy, Senator Rubio reportedly envisions a plan similar to a proposal from the Independent Women’s Forum, calling for a parental leave program funded by new parents’ future Social Security benefits.  Under that proposal, parents could receive up to 12 weeks of benefits to take paid leave at any time in the first year of their new child’s life in exchange for what the Independent Women’s Forum hopes would be six weeks of Social Security benefits in the future.

The Rubio-Ivanka proposal is not without criticism.  Some conservative commentators say the plan would unfairly burden Social Security’s limited resources.  Further, because the Rubio-Ivanka plan would be available regardless of the size of a new parent’s employer, the leave would not be protected under the FMLA if the parent’s employer does not have 50 or more employees within a 75 mile radius.  Liberal critics believe that the proposal will negatively affect women, who generally receive less Social Security benefits than men for reasons of gender-related pay inequity.

While paid family leave is a concept with bipartisan support, proponents disagree about how to fund such a program.  The president’s recent budget plan, which calls for six weeks of family leave paid for by unemployment insurance, appears to be at odds with the Ivanka-Rubio idea.   The Democrat-sponsored Family and Medical Insurance Leave Act (the FAMILY Act) would provide up to 12 weeks of income through a payroll tax on employers and employees.  Employers should continue to monitor discussions and developments in this rapidly changing area.

For the second time in as many years, California Governor Jerry Brown has vetoed “wage shaming” legislation that would have required employers with 500 or more employees to report gender-related pay gap statistics to the California Secretary of State on an annual basis beginning in 2019 for publication on a public website. Assembly Bill 1209 (“AB 1209”), which we discussed at length in last month’s Act Now advisory, passed the Legislature despite widespread criticism from employers and commerce groups.  This criticism included concerns that publication of statistical differences in the mean and median salaries of male and female employees without accounting for legitimate factors such as seniority, education, experience, and productivity could give a misleading impression that an employer had violated the law.  Opponents also decried the burden the bill would place on employers to do data collection and warned that it would lead to additional litigation.  In vetoing the measure, Governor Brown noted the “ambiguous wording” of the bill and stated he was “worried that this ambiguity could be exploited to encourage more litigation than pay equity.”

However, the same pen that vetoed AB 1209 signed another pay-equity law last week: Assembly Bill 168 (“AB 168”).  AB 168 precludes California employers from asking prospective employees about their salary history information.  “Salary history information” includes both compensation and benefits.  Like similar laws passed recently in several other states and cities, the policy underlying the inquiry ban is that reliance upon prior compensation perpetuates historic pay differentials.  Opponents have argued that such a ban will make it more difficult for employers to match job offers to market rates.  Go to our Act Now Advisory on AB 168 for a comprehensive review of this new law.