NFIB/CA Releases Study on Impact of Assembly Bill 1522 (Paid Sick Leave)

Author: Michelle Orrock Date: June 30, 2014

The National Federation of Independent Business/California – the Voice of Small Business – today released a study on the impact of Assembly Bill 1522, which would mandate that all employers provide paid sick leave to all employees after only seven days of work in a calendar year.  This bill requires that employers provide all employees with paid sick leave at a rate of one hour per thirty hours worked regardless of size of employer or ability to compensate for the loss.

The study, conducted by NFIB’s Research Foundation in Washington D.C., found that the long-term effect of AB 1522 would be the loss of jobs and economic productivity in the state.  Depending on the future rate of inflation, the passage of AB 1522 could result in more than 180,000 jobs being lost in California over a ten-year period and a reduction in real output of $29.6 billion. 

“This mandate would impose new costs on California employers including compensation costs associated with paying workers paid sick leave, lost production due to more workers taking leave and new paperwork and recordkeeping costs incurred by complying with the mandate,” said John Kabateck, NFIB/CA Executive Director.  “Now is not the time to tie the hands of small business owners by asking them to comply with yet another ill-conceived mandate.”

“Small business owners treat their employees like family,” continued Kabateck.  “Mandating that they provide certain benefits is not the answer to building a thriving economy.  Even though there has been a reduction in state unemployment, California’s unemployment rate is still the fourth worst in the country and still higher than pre-recession levels.

“Now is not the time for more mandates on small employers.  It is time for government to get out of the way and allow businesses to do what they excel at – creating jobs and building the state’s economy.”

Read the full study here.

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