House, Senate and Baker administration officials are still actively discussing whether they could agree to delay the rollout of the paid family and medical leave law for three months beyond July 1 without passing a bill this week, according to sources familiar with the negotiations.
Senate President Karen Spilka said Thursday that she was “hopeful” that the delay could still be approved, despite Gov. Charlie Baker this week giving legislators a deadline of Friday to decide and Speaker Robert DeLeo on Wednesday calling it “very doubtful.”
Baker also made clear Thursday that he backs a three-month delay, which was requested May 20 by a coalition of business and labor groups, going further than he did on Monday when he simply encouraged legislative leaders to make up their mind.
“Current law requires the program to go into effect July first and employers require significant lead time to adjust payroll operations, as most employers use a two week pay period. We are eager to work with the legislature on a delay and are prepared to act quickly so that employers can have adequate time to prepare,” he said.
Multiple sources told the News Service Thursday that leaders are pursuing a creative, if unusual, solution to the fact that no bill has been filed and they’re running out of time to give businesses certainty.
The talks between the top two Democrats on Beacon Hill and Baker are preliminary, but center around the idea of a joint statement that would come from DeLeo, Spilka and the governor, pledging to take action to delay the start of a payroll tax next month.
The statement, according to two sources, would buy legislative leaders some time to agree on a delay bill, along with other changes to the law, but still allow employers to plan and notify their employees.
A payroll tax to cover the expense of the $800 million paid leave program is due to go into effect on July 1.
“I don’t think there’s any agreement that that’s how everyone wants to move forward,” said one Senate official about the state of the negotiations.
Spilka, after the Senate adjourned for the week on Thursday, acknowledged that talks are ongoing, saying she was “hopeful” about the prospects for agreeing to a delay.
Baker on Monday said his administration had “done the work to be ready,” but told legislative Democrats that if they were going to go along with the delay it needed to be done this week.
In response to that deadline, DeLeo on Wednesday said the House had no plans to take up the delay this week, and called it “very doubtful” that they’d be able to consider the request because there hadn’t even been a bill filed to hold a hearing and review.
He did not, however, shut the door completely, and Rep. Paul Brodeur, chair of the Labor and Economic Development Committee, said there still might be interest among House lawmakers to consider the full package of reforms.