Universal Paid Leave

The Problem

The United States is the only wealthy country in the world - and one of only 6 countries total - with no federal paid parental leave. Zero. A worker in Denver who has a baby, adopts a child, or has a critically ill family member must choose between their income and their family.

• Parental leave: US federal law (FMLA) provides 12 weeks of UNPAID leave - and only for companies with 50+ employees. Most workers can’t afford 12 weeks without pay.
• Sick leave: No federal guarantee. Colorado has 6 days. Workers go to work sick because they can’t afford not to.
• Vacation: No federal guarantee. The average American gets 10 days. Europeans get 20-30. One in four American workers has ZERO paid vacation days.

The human cost: parents return to work days after birth. Cancer patients work through chemotherapy. Workers spread illness because calling in sick means not making rent. This is not freedom - it’s coercion.

What Denver/Colorado Currently Does

Colorado’s FAMLI program (Family and Medical Leave Insurance, C.R.S. 8-13.3-501 et seq.) took effect January 1, 2024. It provides up to 12 weeks of paid family and medical leave (16 weeks for pregnancy/childbirth complications) at 90% of pay up to $1,100/week, funded by a 0.9% payroll premium split between employer and employee.

FAMLI is a significant step forward. Our proposal builds on it:

Feature	Colorado FAMLI	Denver For All
Parental leave	12 weeks	26 weeks (6 months)
Pay replacement	90% up to $1,100/week	100% up to $75K salary
Sick leave	Not covered (separate Colorado HFWA provides 48 hrs)	Unlimited
Vacation minimum	Not addressed	4 weeks minimum
Reserved parental leave (“daddy/mommy quota”)	No	8 weeks per parent

Denver’s program supplements FAMLI; it does not duplicate it. The first 12 weeks would be paid through FAMLI; Denver’s program extends coverage beyond FAMLI’s limits and adds provisions FAMLI does not cover (unlimited sick leave, minimum vacation, reserved parental leave quotas).

Our Solution

The Denver Universal Paid Leave Act

1. Paid Parental Leave: 26 Weeks

• 26 weeks (6 months) paid leave for birth, adoption, or foster placement
• Available to ALL parents regardless of gender
• 8 weeks reserved for each parent (non-transferable “daddy/mommy quota” - modeled on Sweden and Norway, which found that reserved leave dramatically increases fathers’ participation)
• At 100% pay for workers earning up to $75K; 80% for earnings above that
• Job protection: guaranteed return to same or equivalent position
• Available from day one of employment - no waiting period

2. Paid Sick Leave: Unlimited

• No cap on paid sick days for illness or medical appointments
• Covers the worker, their children, parents, spouse/partner, or any household member
• Self-certification for first 3 days; doctor’s note only after 3 consecutive days
• No retaliation, no points systems, no attendance penalties
• Mental health days explicitly included

3. Paid Vacation: 4 Weeks Minimum

• 20 days (4 weeks) paid vacation minimum for all Denver workers
• Increases to 25 days after 5 years, 30 days after 10 years
• Employers cannot buy back unused vacation - time off must be taken
• Pro-rated for part-time workers

4. Paid Family/Medical Leave

• 12 weeks paid leave for serious illness (worker or family member)
• Covers cancer treatment, surgery recovery, chronic illness management
• At 80% of pay
• Job protection guaranteed

The Evidence: This Works

The US is the extreme global outlier. Here’s what normal looks like:

Country	Parental Leave	Vacation	Sick Leave	Economic Result
Sweden	480 days (shared), 90% pay	25 days minimum	Unlimited, 80% pay	World’s 10th largest economy, consistently ranked best for quality of life
Germany	14 months at 65% pay	20 days minimum (most get 30)	6 weeks full pay, then 70%	Largest economy in Europe, unemployment below US
Denmark	52 weeks (shared)	25 days minimum	Full pay during illness	Highest life satisfaction in the world
Finland	320 days (shared)	25 days minimum	Full pay, first 10 days employer-paid	Best education system in the world, consistently top HDI
France	16 weeks maternal + 28 days paternal	25 days minimum	Full pay for up to 3 years (serious illness)	7th largest economy in the world
Norway	49 weeks at 100% or 59 weeks at 80%	25 days minimum	Unlimited, 100% pay (first year)	Highest HDI in the world
USA	0 days paid	0 days guaranteed	0 days federal guarantee	Highest maternal mortality in the developed world

The correlation is clear: Countries with generous paid leave have STRONGER economies, higher productivity, lower healthcare costs, lower infant mortality, and happier populations.

The “Daddy Quota” - Why Reserved Leave Matters

Sweden introduced the first “daddy quota” in 1995 - 30 days of parental leave reserved exclusively for fathers (use it or lose it). Before the quota, 10% of fathers took leave. After: 90%.

Norway, Iceland, Germany, and others followed. The result:

• More equal distribution of childcare labor
• Higher female workforce participation (women aren’t penalized for being “the ones who take leave”)
• Stronger father-child bonds (Petts, Knoester & Waldfogel, 2020, Journal of Marriage and Family)
• Reduced gender pay gap

Denver’s parental leave includes 8 weeks reserved for each parent specifically because the evidence shows this is what changes cultural norms.

What About Small Businesses?

Denver’s program uses an insurance model (similar to Colorado’s state FAMLI program, but more generous):

• All employers contribute a small payroll tax (0.5-1.0%)
• Leave payments come from the fund, not the individual employer
• Small businesses don’t bear the direct cost of an employee’s leave
• This is how it works in every country on the list above

How We Pay For It

Payroll insurance fund: 0.8% payroll tax split between employer (0.5%) and employee (0.3%).

• Generates approximately $150-200M/year (based on Denver’s total payroll)
• Covers all leave payments
• Administered by the Bank of Denver (see: Public Banking) or a dedicated city agency

Cost-benefit: Paid leave REDUCES employer costs through:

• Lower turnover (replacing an employee costs 50-200% of their salary)
• Reduced “presenteeism” (sick workers at work are less productive and infect others)
• Higher morale and engagement
• Reduced healthcare costs (preventive care, less stress-related illness)
• California, New Jersey, Rhode Island, Washington, and Colorado’s FAMLI program all show positive ROI.

Frequently Asked Questions

“Businesses can’t afford this.” Businesses in every other wealthy country afford this. The 0.5% employer payroll tax is a rounding error compared to health insurance premiums. And the evidence from every US state that has implemented paid leave shows zero negative employment effects.

“People will abuse unlimited sick leave.” Data from OECD countries with unlimited sick leave show average usage of 8-12 days/year (OECD Health at a Glance, 2023) - barely more than where it’s limited. Most people want to work. What changes is that sick people stay home instead of infecting the office.

“26 weeks of parental leave is too generous.” It’s HALF of what Sweden provides. It’s HALF of what Denmark provides. And the research is unequivocal: the first 6 months of a child’s life are critical for bonding, breastfeeding, and development. Six months is a minimum, not a luxury.

“What about the parent of a critically ill child who needs more than 26 weeks?” The family/medical leave provision provides an additional 12 weeks. Beyond that, Denver’s social safety net (healthcare, housing support, community health) catches families in crisis. No parent should have to choose between keeping their job and saving their child’s life.

“Doesn’t Colorado’s FAMLI program already cover this?” FAMLI provides 12 weeks at 90% pay - a meaningful improvement over nothing. But 12 weeks is still half of what Sweden, Denmark, and Norway provide. Our proposal extends leave to 26 weeks for new parents, adds unlimited paid sick leave, and establishes a 4-week vacation minimum. FAMLI is a floor. Denver raises the ceiling.

Who Opposes This (and Why)

• Colorado Chamber of Commerce opposed FAMLI and would oppose expanding it.
• Small business groups worry about the additional payroll tax, though the insurance model shields individual businesses from direct leave costs.
• Some employers in hospitality and retail with high turnover resist any leave mandates.

References

• Colorado Revised Statutes, Section 8-13.3-501 et seq. (FAMLI Act)
• Colorado FAMLI Division, Program Implementation Report, 2024
• Colorado Healthy Families and Workplaces Act (HFWA), C.R.S. 8-13.3-401 et seq.
• Swedish Social Insurance Agency (Forsakringskassan), Parental Leave Statistics, 2023
• OECD, Family Database: Parental Leave Systems, 2023
• Norway Ministry of Labour and Social Inclusion, Parental Leave Regulations, 2023