Pregnant Workers, Fairness, and Maximizing Workplace Flexibility
Oct 6, 2023
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The podcast discusses the Pregnant Workers Fairness Act and the potential impact on pregnant workers and employers, as well as the challenges and risks associated with expanding accommodations. It also explores the impact of accommodating pregnant workers on employers, the role of the Americans with Disabilities Act in employment for disabled workers, and the trade-offs and compromises in employment situations. Vanessa Brown-Caldor from the Cato Institute is mentioned.
The Pregnant Workers Fairness Act, while well-intentioned, may create uncertainty and potential costs for businesses due to its open-ended accommodations requirement.
Regulations like the Pregnant Workers Fairness Act and the Americans with Disabilities Act can increase the costs of employing certain workers and hinder workplace flexibility, impacting both pregnant workers and workers with disabilities.
Deep dives
The implications of the Pregnant Workers Fairness Act
The podcast discusses the implications of the Pregnant Workers Fairness Act, a piece of legislation aimed at protecting pregnant workers from discrimination. While the act has good intentions, it leaves the accommodations employers need to provide open-ended, creating uncertainty and potential costs for businesses. Additionally, the Equal Employment Opportunity Commission's proposed rule further expands the scope of the act, potentially increasing the risks associated with it. This could lead to employers being hesitant to hire pregnant workers due to the potential accommodations required.
The costs and impact of regulations
The podcast explores how regulations, such as the Pregnant Workers Fairness Act and the Americans with Disabilities Act, can increase the costs of employing certain workers. The Americans with Disabilities Act, for example, made disabled workers more costly to employ, resulting in adverse employment effects for the disabled population. Similarly, the Pregnant Workers Fairness Act's broad scope and open-ended benefit duration could pose significant costs for employers. Rational employers may be less inclined to hire women who are likely to require accommodations, impacting workplace flexibility.
Promoting workplace flexibility through alternative policies
The podcast suggests alternative policies to promote workplace flexibility for pregnant workers and workers with disabilities. Examples include reforming the Fair Labor Standards Act to allow overtime compensation as future time off, giving workers more flexibility, and local labor regulations that facilitate negotiation of flexible work arrangements. Occupational licensing rules and zoning regulations that limit remote and home-based businesses also hinder flexibility. Implementing such policies could benefit both pregnant workers and disabled workers by providing more opportunities for remote work and flexibility.
So many well-intentioned laws run into basic incentive problems. The Pregnant Workers Fairness Act appears to be another law aimed at protecting many women from mistreatment that may create perverse incentives. Vanessa Brown Calder comments.