NFIB asks Pittsburgh City Council Members not to mandate paid leave

Date: July 30, 2015

This letter was sent by NFIB PA to the sponsor of a paid leave bill in Pittsburgh, Councilman Corey O’Connor, and every other member of the City Council today.  

July 28, 2015

Hon. Corey O’Connor

Dear Councilman:

As an association of small-business
owners, The National Federation of Independent Business, NFIB, I am writing to
share concerns regarding the bill introduced by Councilman O’Connor, which would
mandate paid sick leave in private businesses located in the City of Pittsburgh.  Our organization represents 15,000 small
businesses in Pennsylvania and we have several member companies within the city.

Pittsburgh’s small-business
owners are struggling to get back on their feet after years of recession and a
very slow economic recovery.  This
proposal will definitely increase their costs and it couldn’t come at a worse
time.  We believe this bill will hinder
job growth in the city when council should be focused on creating jobs and
supporting the small-business economy.  This
bill will likely discourage small businesses that are considering opening in Pittsburgh
or expanding there, to look instead for a more business-friendly location
outside the city limits.  That will hurt
economic development in the city.

While very few jurisdictions
have enacted paid leave mandates, our research indicates that the proposed
ordinance as written would be among the most onerous in the country by
requiring up to 72 hours a year and absolutely no exemptions for small
businesses.  Even in Philadelphia, which
unfortunately enacted such a mandate, smaller businesses are not required to
provide paid leave.

Councilman O’Connor has offered
amendments, which were adopted in committee, aimed at making the bill less
onerous on small business, including provisions to reduce the maximum required
leave for employers with less than 15 employees to 24 hours of paid leave by
the 2nd year, provisions to exempt seasonal workers, and provisions
allowing employers to enact their own notification policies.  We recognize that these are positive steps in
the right direction and appreciate the Councilman’s willingness to hear the
concerns raised by business owners.

Ultimately, however, we must
still oppose this mandate.  Mandating a
set number of paid sick days may have unintended consequences.  One benefit of working for a small business is
that the owner is usually flexible and there is often a family-like atmosphere,
which isn’t the case with larger companies. 
For example, if an employee needs to leave work to pick up their child
or go to a doctor’s appointment, the company owner may be more likely to allow
it.  But if each hour must be clocked and
recorded it will mean less flexibility for that worker as well.

There is also a simple
reality that must be recognized. 
Businesses that cannot afford to offer this benefit today are no more
able to afford it simply because it is mandated.  For a company to absorb the cost it will mean
a reduction of other benefits for employees such as such as overtime
opportunities, reduced hours, reduced retirement benefits, lost vacation or
other fringe benefits. Workers may prefer those benefits over paid sick leave, but
a mandate would restrict the flexibility to offer the benefits the employees
want.

I would also point out that
most small businesses do not have a Human Resource department or staff to
manage the paperwork requirements needed to comply with the additional tracking
and reporting requirements in this proposal.

A “one size fits all” paid
sick leave mandate for small businesses is just too restrictive and doesn’t
address the realities of a host of different businesses.  Therefore, it is likely to cause more harm
than good for all concerned.

Thank you for taking the time
to hear the concerns of small business.  Our
members and I are available to discuss these issues with you anytime. Thank you
in advance for your consideration. 

Sincerely,

Kevin Shivers

Executive Director NFIB/PA

cc Hon. Bill Peduto

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