Paid Family Leave Could Cost $1K per Worker

Date: May 31, 2016 Last Edit: June 01, 2016

New taxes would be imposed to pay for the proposed mandate.

Paid Family Leave Could Cost $1K per Worker

The
University of Massachusetts Boston recently released a report saying the paid
family and medical leave legislation under consideration in the Legislature
would cost $159 per worker per year, but the Associated Industries of
Massachusetts has warned that it would cost far more. AIM, a business group,
told the Boston Globe that the per-worker
cost would be four to six times UMass’ estimates—$636 to $954—according to
actuaries surveyed.

 The
cost would be split between employers and workers, and a new tax would be
imposed on both to pay for the mandated benefit as well as new levels of state
bureaucracy that would have to administer the program. If the measure
ultimately passes the Legislature, this would go against the ‘no new taxes’
pledge taken by House Speaker Robert DeLeo and Gov. Charlie Baker.

Under
House Bill 4351, which has been reported with a favorable recommendation by the
Joint Committee on Labor and Workforce Development, employees would be able to
take 26 weeks of paid leave for their own illness and 12 weeks of paid leave
for the birth/adoption of a child or to care for a relative, including a
spouse, parent, grandparent, in-law, child, or grandchild.

 With
small business owners already struggling to adjust to the last paid sick leave
law—one hour of leave for every 30 hours worked—adding another mandate would be
excessive and extremely damaging to Massachusetts job creators. Tell your
legislators how HB 4351 would impact your business.

 

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