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In last week's e-News, the Sacramento Metro Chamber asked members what they think of AB 2716 that would require employers to offer paid sick days. So far, 86
percent of respondents oppose the bill and yet 80 percent of the respondents'
businesses currently offer sick leave benefits.
Nevertheless, 86 percent of those
responding want the Metro Chamber to oppose the Paid Sick Leave Bill. The Metro
Chamber's Executive Committee will be taking up the matter and making a decision
in the upcoming weeks.
The survey is currently open, and a significant percentage of Metro Chamber members so far had replied.
Other survey findings:
30 percent had businesses with more than 100
employees, 25.3 percent had 6-20 employees, 25 percent 21 to 100 employees and
19 percent five or fewer employees.
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65 percent offered between one and 10 sick
days; and 15 percent offered 11 or more sick days.
40 percent reported the sick day benefit cost
their firms more than $25,000 annually; of those, nearly 29 percent reported
costs of greater than $100,000 annually.
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45 percent reported they would cut other
benefits if they had to free up resources to implement this new burden to
business.
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34 percent would not hire additional
employees to free up resources.
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40 percent would lay-off employees or reduce
employees' salaries.
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31 percent would increase prices.
Among comments as to what effect the proposed
law would have on their business, Metro Chambers said:
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As a small business, we try and control our
payroll depending on the season to contain costs. This will hurt us
financially especially if it is cumulative. There will be certain employees
who will take advantage of this perk. There will also be employees who could
use it. I just resent government telling me how to run my own business.
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Every condition for using the time would be
utilized. This would be like workers comp. before the reforms, people would
game the system!
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It would provide a negative impact. It
promotes staff to take more days off. We find employees taking their sick
leave now for questionable reasons....
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The mandated benefit doesn't come out of thin
air, and a smart business owner will find away to make either the customer or
employee pay, one way or the other. It's simple economics, I think the
legislators either don't understand the complete issue or don't care about the
unintended consequences.
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I would have to close the business.
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We do provide paid sick days, but accruing
unused sick (leave) is onerous. It would cost us a substantial amount of
money.
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Increase payroll costs, increase timekeeping
costs, reduce flexibility with employee benefits.
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Multiple levels of change. Accrual methods
that differ from other benefits. Software changes needed in new and older
programs that may not have upgrades available. More burden placed on employer,
while employee has no burden. Extra hours of unproductive time and wages will
have to be passed down to consumers. This would have a great negative impact
on our business.
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The additional cost of this new bill in paid sick pay to the
rest of my employees would be enormous.
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The company would immediately decrease the
number of sick days currently awarded full-time employees. The negative impact
is severe and would take many hours to calculate.
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It will increase the cost of our product and
force us to pass those costs on to consumers. If the market is unwilling to
pay a higher price, then we will have to layoff employees to reflect higher
costs associated with being an employer. At some point soon, we may move our
business out of the state. California is not a business-friendly state. I love
it here, but it is getting very hard to maintain a profitable business with the
high direct taxes and indirect ones such as this bill.
The survey also asked for respondents for
comments to pass to the region's 12-member state legislative delegation. Here's
a sampling:
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I feel that the legislature has no idea how
difficult it is to run a small business, and the fact that someone is in
"business" must mean they can accommodate health plans, mandated sick leave
etc. We already pay a lot of matching taxes, and I assume, in addition to pay
more taxes, we have to pay the employee too! We already have to have workman's
comp. It feels like local governments are desperately trying to tie the lack
of a universal health plan by state and federal governments onto businesses
because they have no other resource.
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This is simply one of the worst bills of all
time. The originators of this bill have obviously never worked with human
resources, payroll, or even general business practices. Employers should only
have to pay for time worked, all other payments for time not worked MUST be
left at the employers discretion. Employee retention is the motivation for an
employer, not ridiculous legislation.
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Why does this legislature persist in
dis-incentivizing employment and driving employers out of state?
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If they don't oppose this bill more company's
will be required to reduce benefits, cut salaries, raise fees, and lose out to
out-of-state companies. It will also drive out businesses in California. It
seems the state has already put a major burden on the backs of companies in
California. Enough is enough!
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Government should be focused on the real problems of its citizens, not
expanding and dictating fringe benefits. Shouldn't the government be trying to
improve the economy (by less regulation), not creating a more-hostile business
environment in California?
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Do not allow government to dictate the
"benefits" an employer offers to employees. Let the market determine what is
fair and equitable.
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One particularly loony provision of this bill
allows an employee who does not have a spouse or domestic partner to
"designate a person for which he or she may use paid sick days to provide
care" (a neighbor, a friend, his dog or cat, who knows?). This is "nanny
government" at its absolute worst!!
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This is another obstacle in doing business in
California. This is especially true for the mid and small size businesses
which are the backbones of this country. Legislature needs to remember if
there are no businesses there will be no employees or jobs. If business taxes
are down, government spending will be down or the State will go into
bankruptcy.
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This is one of the most outrageous proposals
I have heard in a long time. I already offer my employees paid vacation and
holidays.
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It is bad enough that the government workers
have as many holidays, sick days and other perks that do not mandate that they
work, and now they want us in the private industry to follow suit. Well, we do
not have the deep pockets the government has. And it is so easy for them to
spend it, due to them extrapolating it from our lives and businesses. Enough
is enough when it comes to the government telling us how to spend our money.
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While I believe that every responsible
employer should provide their employees with sick benefits, the law as
currently written is too restrictive and will place an excessive burden on
small business...and, let's face it, if employer's costs go up everybody's
costs go up.
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Strongly oppose this bill. Leave the running
of businesses to the business men and women. The state has a large deficit due
to the brilliant business practices of our legislature. The private business
person can't stay in business if the costs to run it keep escalating.
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I feel private businesses with 50+ employees
should be looking to improve the quality of life for their employees. It leads
to retention, loyalty. I think it's a shame that my tax dollars go to state
employees, rather than supporting our community and the private business
owner. I do feel the law should take into account the number of employees on
the payroll. Larger businesses, that employ 50+ can certainly afford the
benefit.
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