Business owner says proposal would've been big burden.
A proposal for dramatic change in paid family leave in Minnesota would be unrealistic for small businesses, says Jerry Kortesmaki, owner of London Road Rental Center in Duluth.
Under the original bill, proposed in February, workers and employers would have been required to contribute equally to a fund that would provide up to six weeks of paid leave for workers who have a baby, adopt one or who need to take care of sick family members. Employees would have had to pay a new 0.1 percent tax on their annual salary, capped at $78 per year, and could’ve received up to 95 percent of their weekly wage in paid leave for up to six weeks. Employers would’ve been required to match their employees’ contributions. The plan made no exceptions for small businesses.
The bill has since been amended into a study. But paid family leave is turning into a worrisome issue for small business owners around the country, and the issue is likely to come up again in Minnesota.
Small business owners say the proposal would’ve been particularly onerous for them.
“When we only have five full-time employees, what are we supposed to do when we’re mandated to give one of them time off?” Kortesmaki asked. “I’m not saying we won’t take care of them. We’re still a family.”
But hiring and training a temporary worker would be expensive and time-consuming, he said.
NFIB/Minnesota State Director Mike Hickey called the family leave proposal shocking.
“It is just unbelievable that they would mandate something this rigorous on the smallest companies in our state who are struggling to survive and some of which may not be in business next year,” Hickey said in a statement.
Current law provides 12 weeks of unpaid parental and family leave for companies with 21 or more employees—a program that is more manageable and cost effective.
How would paid family leave affect your small business? Tell us in the comments section below.
