Latest Paid Leave Bill is a $1 Billion Tax

Date: February 27, 2018

Several paid family and medical leave bills are currently pending before the Committee for Workforce and Labor Development and have a very real likelihood of moving forward. This is one reason 2018 is shaping up to be a potentially devastating year for small businesses, NFIB/MA State Director Chris Carlozzi wrote in CommonWealth.

The proposed legislation and ballot question would create a public program/fund that employers and employees would pay into. This fund would then be used to pay employees during their medical or family leave, which could be up to 26 weeks and 16 weeks, respectively, for employers of all sizes.

“The program, estimated to be a roughly $1 billion tax, would be funded by employers and workers,” Carlozzi wrote in CommonWealth. “It would mean less money in a worker’s paycheck and less money available for employers to hire and grow their businesses. In the small handful of states with mandatory leave programs, all are entirely funded by the worker (except in Washington State). While proponents of leave proposals claim widespread support from the general public, how many workers are aware they will see a reduction in their take home pay? How many workers would rather have a larger paycheck over another new state-run program they may never utilize?”

If the Legislature does not approve a bill by June, the issue will become a ballot initiative question that will go before voters in November.

Related Content: News | Labor | Massachusetts | Paid Leave | State

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