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Paid Family Leave Legislation is One Too Many Mandates for Michigan’s Small Businesses

Paid Family Leave Legislation is One Too Many Mandates for Michigan’s Small Businesses

December 10, 2024

The Family Leave Optimal Coverage Act is overwhelmingly opposed by small businesses

LANSING, Mich. (Dec. 10, 2024) – NFIB Michigan State Director Amanda Fisher testified today before members of the Michigan Senate Committee on Housing and Human Services in opposition to Senate Bill 332. The legislation, the Family Leave Optimal Coverage Act, would allow eligible employees to take up to 12 weeks of paid family leave in a benefit year. The legislation passed out of committee.

According to an NFIB member ballot, 96% of NFIB Michigan members said they do not support proposals requiring employers in Michigan to give employees a guaranteed number of days of annual paid and sick leave.

“The majority of Michigan’s small business owners already do everything they can to provide paid leave and flexibility to their employees – this legislation is a step too far for small businesses,” said Fisher. “The legislature should instead focus on making changes to the Earned Sick Time Act, which has left small businesses throughout the state unprepared and confused. Small business owners cannot take one more government one-size-fits-all labor mandate, regulatory burden, or cost.”

“We are disappointed that members of the Committee ignored the pleas of small businesses and offended that supporters of the legislation continued to insinuate that this legislation would actually help Michigan small businesses. Our members know what will and won’t benefit their businesses, and policymakers need to start paying better attention to what they say,“ continued Fisher. “The legislature needs to stop passing damaging legislation like SB 332 and focus on making common sense changes to the Earned Sick Time Act.”

NFIB opposes SB 332 for several reasons:

• One-size-fits-all mandates hurt small businesses.
• Small businesses would struggle to replace workers out for long periods of time.
• It is a tax burden for both employees AND employers.
• Taxes for both employees and employers will be controlled by the Department of Labor and Economic Opportunity and can fluctuate wildly from year to year.
• It is a regulatory and litigation nightmare.
• It is a tax burden for employees as well as employers.

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