Local Governments Imposing Paid Sick Leave On Small Businesses

Date: February 07, 2014

More States Considering Implementing Mandatory Benefit

A number of municipalities, along with the state of Connecticut, have begun mandating that businesses give a certain number of paid sick days to employees each year. While Connecticut is, so far, the only state mandating paid sick leave, cities such as New York; San Francisco; Portland, Oregon; Jersey City; and Washington, DC have already done so. In addition, bills calling for mandatory paid sick leave have been introduced in recent years in Arizona, Hawaii, Maryland, Michigan, New Jersey, New York, North Carolina and Vermont. The Connecticut law calls for five paid days for non-exempt companies with 50 or more employees. The municipal laws generally require businesses with at least five employees to provide a number of paid sick days based on hours worked, up to a maximum of five to seven days a year.

What Does It Mean For Small Businesses?

The mandates may prove difficult for many small businesses, particularly those in the service sector, where a temporary worker has to be paid to replace a worker out on paid sick leave.

Further Reading:

NFIB Regulations – Surveys, Studies and Presentations estimates the effects and economic impact of mandated paid sick leave on small business.

The Wall Street Journal runs a comprehensive report on the subject, while the Newark (NJ) Star-Ledger runs a follow-up piece, focused on Jersey City. My Eastern Shore MD runs a piece examining action on the subject in Maryland, while the VTDigger covers the progress on the legislation in Vermont.

This news article is intended to keep small business owners apprised of current events that may affect them. It does not necessarily reflect NFIB’s policy position on such issues.

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