X^?THE FEDERAL EMPLOYEES FAMILY FRIENDLY VOL LEAVE ACT 84/10:103-44 Y 4.P The feJersl Enplo9e« Fanilj rrie.4... HEAEING BEFORETHE SUBCOMMITTEE ON COMPENSATION AND EMPLOYEE BENEFITS OFTHE COMMITTEE ON POST OFFICE AND CIVIL SERVICE HOUSE OF REPRESENTATIVES ONE HUNDRED THIRD CONGRESS SECOND SESSION MAY 18, 1994 Serial No. 103-44 Printed for the use ofthe Committee on Post Office and Civil Service ** " BS, U.S. GOVERNMENT PRINTING OFFICE WASHINGTON : 1994 ForsalebytheU.S.GovernmentPrintingOffice SuperintendentofDocuments.CongressionalSalesOffice.Washington.DC 20402 ISBN 0-16-046198-7 X/?THE FEDERAL EMPLOYEES FAMILY FRIENDLY LEAVE ACT \J 84/10:103-44 Y 4.P F"«'- Ue Federal Enplojees F«iil» HEARING BEFORETHE SUBCOMMITTEE OX COMPENSATION AND EMPLOYEE BENEFITS OFTHE COMMITTEE ON POST OFFICE AND CIVIL SERVICE HOUSE OF REPRESENTATIVES ONE HUNDRED THIRD CONGRESS SECOND SESSION MAY 18, 1994 Serial No. 103-44 Printed for the use ofthe Committee on Post Office and Civil Service JA ?/0, ft U.S. GOVERNMENT PRINTING OFFICE WASHINGTON : 1994 ForsalebytheU.S.GovernmentPrintingOffice SuperintendentofDocuments,CongressionalSalesOffice.Washington.DC 20402 ISBN 0-16-046198-7 COMMITTEE ON POST OFFICE AND CIVIL SERVICE WILLIAML. CLAY,Missouri,Chairman PATRICIASCHROEDER,Colorado JOHNT. MYERS, Indiana FRANKMcCLOSKEY,Indiana BENJAMINA. GILMAN,NewYork GARYL.ACKERMAN,NewYork DONYOUNG,Alaska THOMASC. SAWYER,Ohio DANBURTON, Indiana PAULE. KANJORSKI,Pennsylvania CONSTANCEA.MORELLA,Maryland ELEANORHOLMES NORTON,Districtof THOMASJ. RIDGE,Pennsylvania Columbia THOMASE. PETRI,Wisconsin BARBARA-ROSECOLLINS,Michigan SHERWOOD L.BOEHLERT,NewYork LESLIEL. BYRNE,Virginia (Vacancy) MELVINL.WATT,NorthCarolina ALBERTRUSSELLWYNN,Maryland GREGLAUGHLIN,Texas SANFORDD. BISHOP,Jr.,Georgia SHERRODBROWN,Ohio ALCEEL. HASTINGS,Florida GailE.Weiss,StaffDirector RobertE. Lockhart,GeneralCounsel DorisMoore-Glenn,DeputyStaffDirector JosephA.Fisher,MinorityStaffDirector Subcommittee on Compensation and Employee Benefits ELEANORHOLMESNORTON,DistrictofColumbia, Chair GARYL.ACKERMAN,NewYork CONSTANCEA.MORELLA,Maryland LESLIEL. BYRNE,Virginia DONYOUNG,Alaska CedricHendricks,SubcommitteeStaffDirector (ID CONTENTS May 18, 1994 HearingheldinWashington,DC,May 18, 1994 ,,„„,« Pag1e StatBeomwelnitngo,f:Timothy P., Associate Director, Federal Human ResourceMan- agementIssues, GeneralGovernmentDivision,GeneralAccountingOf- H Grfeiecne,,aLcocrormapianen,ieDdebpyutRyobDeirrtecSthoerl,toOnffice ofPersonnel Management, ac- companied by Barbara Fisk, Associate Director for Personnel Systems HaarnnadgOev,erRsoibgehrtt, national secretary-treasurer, A••meri.-can f»•e•d••erat•i•on ot• 2 GovernmentEmployees;SheilaVelazco,president,NationalFederation uofryFeEdmerpalloyEemepsloUyneieosn;;SaunsdanCSahraolwy,nleKgriosolant,ivperelisaiidseonnt,,NaFtedieornaalllyTreEams-- ployedWomen 20 PrepBaorweldinsgt,atTeimemnottsh,ylePt.t,erAss,soscuipaptleemDeinretcatlorm,atFeerdiearlsa,leHtucmetaenra:Resource Man- agementIssues, GeneralGovernmentDivision,GeneralAccountingOf- Chafitceel,,prMeaprayr,edprsetsaitdeemnet,ntNoaftional Council Social Security M•a•nagement 14 Associations,Inc.,preparedstatementof 36 FederalManagersAssociation,preparedstatementof 35 Green,Lorraine,DeputyDirector,OfficeofPersonnelManagement: RPeresppaornesdesttoatwermietnttenofquestions submitted by Hon. El•eanor •H-•o••lmes 4 Norton -•••• • 5 Harnage, Robert, national secretary-treasurer, American Federation ot GovernmentEmployees,preparedstatementof 21 Kroon, Carolyn, president, Federally Employed Women, prepared state- mentof • ••••••• 28 Morella, Hon. ConstanceA.,aRepresentativeinCongressfromtheState ofMaryland,preparedstatementof 31 Tobias, Robert M., president, National Treasury Employees Union, pre- Velpaazrceod,sSthaetielmae,ntproefsident, National Federation of Federal Emplo•yees, 25 preparedstatementof 23 (III) THE FEDERAL EMPLOYEES FAMILY FRIENDLY LEAVE ACT WEDNESDAY, MAY 18, 1994 House of Representatives, Committee onPost Office and Cptil Service, Subcommittee on Compensationand Employee Benefits, Washington, DC. The subcommittee met, pursuant to call, at 2:28 p.m., in room 311, Cannon House Office Building, Hon. Eleanor Holmes Norton (chairofthe subcommittee) presiding. Members present: Representatives Norton andMorella. Ms. Norton. The hearingis convened. Today we hold a hearing on H.R. 4361, the Federal Employees Family Friendly Leave Act, which I introduced on May 5, 1994. The first part ofthe bill provides that in addition to any other al- lowable purpose, sick leave may be used by an employee to give care or otherwise attend to a family member ofthe employee hav- ing an illness, injury, or other condition which, ifan employee had the condition, wouldjustify the use ofsick leave by that employee. Currently, Federal employees are permitted onlyto use their sick leave fortheirown illnesses, pregnancies, orifsomeone in theirim- mediatefamilyhas acontagious disease. The second part ofthe bill provides that Federal employees may donate and receive annual leave for any reason from family mem- bers who also work forthe Federal Government. However, in order to be eligible to receive a transfer of an annual leave, the leave transfer must not cause the total amount ofannual leave available to the employee to exceed 240 hours. In addition, employees would not be able to cash out transferred leave upon leaving Government service. Both parts of the bill would be authorized for a 3-year period, and, not later than 6 months before the authority sunsets, the Of- fice ofManagement and Budget would submit a report to Congress evaluating the use ofthis authority and making recommendations as towhetherornot it shouldbe continued. Analysis of existing Federal Government leave policy shows the need and desire for this legisl—ation. The report ofthe National Per- formance Review states that and I am quoting: "Family friendly policies serve the needs ofa diverse work force struggling to man- age child care, elder care, family emergencies, and other personal responsibilities while at the same time remaining committed to professional development and advancement." The NPR went on to recommend that employees be permitted to use sick leave to care for dependents in orderto advance these goals. (l) In addition, the Bureau ofLabor Statistics found that in the pri- vate sector 36 percent of employees are already granted the right by their employers to use sick leave to care for a sick child. OPM found that 46 State governments whose sick leave approval policies are generally comparable to those ofthe Federal Government allow use ofsickleaveforfamilyillnesses. The GeneralAccounting Office conducted a study that found that several private sector employers allowed employees to use all or a portion of their paid sick leave to care for immediate family members who were ill. Today GAO will expand on these findings. GAO will also share the results of its reportthat examines how Federal employees feel about the Fed- eral Government as a placetowork. On May 11, 1994, OPM published an interim regulation to, among other things, permit Federal employees to use up to 5 days oftheir accrued sick leave to care for a sick child, spouse, or par- ent. This OPM proposal is not as far-reaching as my bill. During the hearing today, I want to explore the differences between my bill and OPM's regulations. Today, in addition to OPM, we will hear also from the GAO and organizations representing Federal employees as well as Federal employed women. I welcome all oftoday'switnesses andvery much lookforwardtohearingyourtestimony. May I ask the first witness to come forward, the Honorable Lor- raine Green, DeputyDirector, Office ofPersonnel Management. STATEMENT OF HON. LORRAINE GREEN, DEPUTY DIRECTOR, OFFICE OF PERSONNEL MANAGEMENT, ACCOMPANIED BY BARBARAFISS,ASSOCIATEDIRECTORFORPERSONNELSYS- TEMSANDOVERSIGHT Ms. Green. Good afternoon, Madam Chair. For the record, I am Lorraine Green, the Deputy Director ofthe Office ofPersonnel Management, andjoiningme at the table today is Barbara Fiss, the Associate Director for Personnel Systems and Oversight. I am pleased to be here today to discuss a topic that is apriorityofthis administration, familyfriendlyleavepolicies. The bill you have introduced, Madam Chair, has two compo- nents. It would make a Federal employee's sick leave available without limitation for use in caring for a familymember ofthe em- ployee who is sick or injured. The second part ofyour bill would amend the Federal Employees Voluntary Leave Transfer Program to permit an employee to transfer annual leave to afamily member ofthe employee forreasons otherthan amedical emergency. Let me begin by addressing the first part of your bill. I am pleased to inform you that OPM has recently published proposed sick leave regulations allowing Federal employees to use up to 5 days ofsick leave each year to provide a family member with care needed because ofillness, injury, pregnancy, or childbirth. The reg- ulations also would permit use of sick leave, subject to the 5-day limit, to make arrangements required by the death of a family member or to attend the funeral of a family member. We believe this change will serve both employees and the Government as an employer. The Government needs to adopt policies that will enable it to re- cruit and retain high quality employees who, when they are on the job, will be focused on serving their customers and not distracted by worries about the safety and health of their family members. Moreover, the Government, as a model employer, needs to set an example for other employers who may fear that family friendly policies will impede their ability to provide top quality customer service. Family friendly policies produce employees who are more loyal to their employer and more committed to carrying out the mission oftheiragencyefficientlyand effectively. Our proposed regulations do differ from your bill in placing a 5- day limit on the amount ofsick leave that could be used by an em- ployee each year for caring for a family member. We believe this limit will ensure that employees will continue to have sufficient sickleaveto meettheirown needs inthe eventofillness. Federal employees earn 13 days ofsick leave each year. The av- erage employee uses 8 days ofsick leave ayear, leaving 5 days un- used. Consequently, we believe a 5-day limit on the use of sick leave to care for family members will be adequate and appropriate in the vastmajorityofcases. Our proposed regulations on sick leave would also change the current rule which allows former Federal employees who return to service to have their unused sick leave recredited only if their break in Federal employment lasted no more than 3 years. Our proposed regulations would eliminate the 3-year limit so that sick leave would be recredited to the employee regardless of the dura- tion of the break in Federal service. We believe employees would be more likely to use sick leave responsibly ifthey know that they can accrue andmaintain a substantial sickleavebalance and count on having it remain to theircredit even iftheirFederal careers are interrupted, such as a parent who chooses to interrupt his or her careerfor afewyears to careforayoungchild. The second part of your bill, Madam Chair, concerns the vol- untary leave transfer program. Currently the law governing our leave transfer program allows employees to share annual leave only in the event of a medical emergency. Your bill would allow transfers of annual leave for any purpose between employees who are related. While this measure would be welcomed by some em- ployees, it would expand the leave-sharing program substantially beyond its original purpose, which was to allow employees to help their coworkers maintain income during a medical emergency. We are concerned that this particular expansion may be perceived as unfair to the vast majority ofemployees who do not have relatives employedbythe Federal Government. To conclude mytestimony, I would say that the objectives ofthis bill and of the administration's new sick leave regulations are re- markably similar. We all agree that family friendly leave policies are essential to creating a highly qualified and motivated work force. However, we believe it is preferabl—e to approach this objec- tive through the regulatory process first to invite and evaluate comments from all interested parties which we can take into ac- count in developing final regulations, and then we can always fur- therrevisethe regulations ifneedbe, based on experience. Again, thank you for inviting me here today, and I would be happyto answeranyquestionsyou mayhave. [The prepared statement ofMs. Greenfollows:] PreparedStatementofLorraineGreen,DeputyDirector,Officeof PersonnelManagement Madam Chairand members ofthe subcommittee, I a—m pleasedto beheretoday todiscussatopicthatisapriorityofthisadministration family-friendlyleavepoli- cieTs.hebillyouhaveintroduced, MadamChair,hastwocomponents. Itwouldmake a Federal employee's sick leave available, withoutlimitation, foruse in caring for a family member ofthe employee who is sick or injured. The second part ofyour billwouldamendtheFederalEmployees'VoluntaryLeaveTransferProgramtoper- mit an employee to transfer annual leave to a family memberofthe employee for reasonsotherthanamedicalemergency. Letmebeginbyaddressingthefirstpartofyourbill. I ampleasedtoinformyou that OPM has just published proposed sick leave regulations implementing rec- ommendationsoftheNational Performance Review. These regualtionswould allow Federal employees to use up to 5 days ofsick leave each yearto provide a family rmeegmulbaeteionwsitahlscoawreounlededpeerdmibtecuasueseofosficikllnleesasv,e—injsuurbyj,ecptrteogntahrecy5,-doaryclhiinludVbi-rttoh.maTkhee arrangements required by the death ofa family member or to attend the funeral ofafamilymember. We at OPM believe this change will serve both employees and the Government as an employer. The Government needs to adopt policies thatwill enable it to re- cruit and retain high-quality employees who, when they are on the job, will be forcusedon servingtheircustomers and notdistractedbyworries aboutthe safety and health oftheir family members. Moreover, the Government, as a model em- ployer, needs to set an example for other employers who may fear that family- friendly policies will impede their ability to provide top quality customer service. Famil-friendlypolicesproduceemployeeswhoaremoreloyaltotheiremployerand more committed to carrying out the mission oftheir agency efficiently and effec- tively. Ourproposedregulations do differfromyourbill in placing a 5-daylimitonthe amount ofsick leave that could be used by an employee each year for caring for a family member. We beleive this limit makes sense as a means ofensuring that employeeswillcontinuetohavesufficientsickleavetomeettheirownneedsinthe eventofillness. Federal employees earn 13 days ofsick leave each year. The average employee uses 8 day ofsickleave ayear, leaving 5 days unused. Consequenbtly, we believe a 5-day limit on the use ofsick leave to care forfamily memberwill be adequate andappropriateinthevastmajorityofcases. Ourproposedregulationsonsickleavewouldalsochangethecurrentrulewhich allowsformerFederalemployeeswhoreturntoFederalservicetohavetheirunused sickleaverecreditedonlyiftheirbreakinfederalemploymentlastednomorethan 3 years. Our proposed regulations would eliminate the 3-year limit, so that sick leave would be recredited to the employee regardless ofthe duration ofthe break in Federal service. We believe employees will be more likely to use sick leave re- sponsibly iftheyknow thatthey can accrue and maintain a substantial sick leave baarleainncteerarnudptceodu—ntsuocnhhaasviangpairternetmwahinotcohotohseiersctroediintt,eerrvuepntihfitsheoirrhFeerdecraarleecrarfeoerras fewyearstocareforayoungchild. Thesecondpartofyourbill, MadamChair, concernstheVoluntaryLeaveTrans- fer Progam. Curently, the law governing our Leave Transfer Program allows em- ployees to share annual leave only in the event ofa medical emergency. Your bill would allow transfers ofannual leaveforany purposebetween employees who are related.Whilethismeasurewouldbewelcomedbysomeemployees,itwouldexpand theLeaveSharingProgramsubstantiallybeyonditsoriginalpurpose,whichwasto allow employees to help their coworkers maintain income during a medical emer- gency. We areconcernedthatthisparticularexpansionmaybeperceivedasunfair tothevastmajorityofemployeeswhodonothaverelativesemployedbytheFederal Government. Toconclude mytestimony, I would saythatthe objectives ofthisbill and of the administration'snewsickleaveregulationsareremarkablysimilar. Family-friendly leavepoliciesareessentialtocreatingahighlyqualified andmotivatedworkforce. However, we believe it is preferable to approach this objective through the regu- latory process first^-to invite and evaluate comments from all interested parties, which we can take into account in developing final regualtions—and then we can alwaysfurtherrevisetheregulations,ifneedbe,basedonexperience.