Five Ways Paid Family and Medical Leave Will Benefit New Mexico

Lawmakers must take this historic opportunity to put New Mexico on a brighter path.

November 1, 2024

Last year, a broad coalition of advocates came within two votes of passing the Paid Family and Medical Leave Act — a bill that would provide up to 12 weeks of paid leave for employees to care for a new child, a family member with a serious health concern, or their own medical condition. Concerned community members and lawmakers have been pushing for a version of the bill since at least 2002, when Senator Mimi Stewart sponsored a joint memorial to study PFML.

The passage of this policy – now 20+ years in the making – would profoundly improve the lives of New Mexico families, businesses, and our economy. As we prepare to head back to the Roundhouse in January to push this critical legislation over the finish line, here’s what you need to know.

1. Creating Healthy Communities 

At some point in our working years, most of us will need to take time away when we welcome a new child, face a serious health issue, or the illness of a close family member. Without a state-administered program, only those fortunate enough to work for a business that offers a paid leave policy can take time off for these life events without missing out on vital income. Far too many New Mexicans must choose between their families and a paycheck. It shouldn’t be this way.

A lack of paid leave can cause stress and anxiety for new parents and caregivers, lead to adverse health outcomes for newborns, and cause people to delay necessary treatments. Conversely, research shows that paid leave policies improve the mental and physical health of new parents, reduce infant mortality rates, reduce the rates of physical and mental abuse of children, lower rates of hospitalizations among infants, and improve the chance of early detection and treatment of health issues. Passing PFML is a critical investment in the long-term health and well-being of our families and communities.

2. Bolstering Small Businesses 

Those opposed to paid family and medical leave have focused on the perceived “costs,” to small businesses, while dismissing the immense value that these policies bring to employers. A state-administered program takes the burden off small business owners of providing for their employees – who are often more like extended family –when they have a critical life event. While an employee is out on leave, they receive their check from the Department of Workforce Solutions, freeing up small businesses to spend the savings on temporary workers, paying for overtime, or reinvesting the money in their business. 

Paid leave, considered the most important benefit for 30% of employees,  also helps small businesses compete with larger businesses in recruiting employees with top credentials. And it helps them keep valued workers, who are more likely to return to an employer who treats them with compassion and fairness. Since replacing an employee costs approximately 21% of a person’s annual salary, reducing turnover rates is a significant benefit for small businesses. Offering paid leave can also boost morale, productivity, and performance. One study found that 91 percent of small businesses in California reported that offering PFML had a “positive effect” or “no noticeable effect” on their profitability and performance.

3. Stimulating the Economy 

Paid family and medical leave encourages people –especially women– to remain in the workforce, rather than quitting their jobs to tend to family members or their own health. This improves overall labor force participation, a critically important benefit for New Mexico, which has the fourth lowest labor force participation in the country, partly due to the impact of children. When people don’t have to choose between caring for themselves or a loved one a paycheck, it also strengthens their financial stability, which, in turn, makes it easier for them to spend money in their communities, boosting the local economy.

4. Furthering Equity and Justice 

We are strongest as a community when we all have a fair and equal chance to achieve our full potential, raise healthy families, and care for ourselves and loved ones in times of need. But because of systemic racism and discrimination, not all people in our communities have equal access to high-paying jobs, paid leave, and quality health care. A state-wide paid family and medical leave policy would help level the playing field. It promotes gender equity by ensuring women, who bear a disproportionate share of caregiving responsibilities, don’t have to quit their jobs to care for a newborn or loved one. It ensures families of color, who are less likely to have jobs that offer paid leave policies, have equal opportunities to take time off to care for themselves or family members, without sacrificing a paycheck. In recognizing and including diverse family structures, PFML would help LGBTQ+ people to care for their loved ones, including chosen family, while retaining their jobs. PFML is also an equity imperative for people with disabilities, who already face high barriers to employment due to ableism. No matter what we look like, where we come from, or what kind of families we live in, we all deserve to care for our loved ones without sacrificing our economic security.

“We are strongest as a community when we all have a fair and equal chance to achieve our full potential, raise healthy families, and care for ourselves and loved ones in times of need.”

5. A Mandate for Action 

A 2021 poll commissioned by Southwest Women’s Law Center and the PFML coalition found that more than three-quarters  – 77% – of New Mexicans support the creation of a paid family and medical leave program. A 2024 Small Business Majority poll found that 85% of small businesses support creating a state-run PFML program, with 61% of small business owners strongly agreeing that it would better level the playing field with larger companies that can afford to offer these programs voluntarily and pay for extended leave out-of-pocket. It’s clear that the vast majority of New Mexicans want paid family and medical leave. As lawmakers prepare for the 2025 legislative session, it’s critical they prioritize and pass PFML to strengthen the health of our communities, small businesses, and our economy at large.