PA Legislative Director testifies on proposal
NFIB testified recently in opposition to a bill before the Senate Labor and Industry Committee that would require up to 12 weeks of paid leave for all Pennsylvania employees, and up to 20 weeks for birth or adoption (SB 580). The bill would be funded by added payroll tax deductions on all employees in the state and apply to every size business, including those with a single employee.
“Due to their size, small businesses are very vulnerable to government mandates, and this paid leave bill will create great hardship both in getting the workload done and by adding higher costs,” said NFIB State Director, Gordon Denlinger. “In a business with a handful of employees where one worker may have special training or certain safety certifications, work could come to a halt if the business owner can’t find a replacement with the needed skills.”
Small Business owners frequently depend on the contribution of every employee and offer flexible work arrangements to accommodate the worker’s needs. Owners frequently allow employees to return to work gradually after having a baby, suffering through an illness, or taking care of a sick family member. Small business owners routinely change work start or end times, allow employees to work from home, and grant days off with pay when needed.
“The mandate creates many added costs for the small business such as paying a replacement or overtime when other employees fill in for the one on leave, while the owner is still covering their benefits,” added Denlinger. “There are costs to train a temp or current employee. The owner can’t just hire a replacement and then let them go when the worker on leave returns to the job—that’s simply not fair. This government mandate would be a huge hurdle for small businesses, and many will be paralyzed by it.”
The state government will be creating a new and expensive bureaucracy to administer the program within the Department of Labor and Industry. That agency would have added power to increase the tax burden on workers if it deems that necessary without legislative review.”
“Employees who don’t need or want leave may also be troubled by having to pay for those who do,” said Denlinger. “The increased payroll tax to fund paid leave will amount to about one-fifth of what they currently pay in state income tax—a big hit in the wallet for hard-working people.”
TO READ TESTIMONY IN OPPOSITION TO THIS SENATE BILL ON PAID LEAVE CLICK HERE
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