Freedom Line Blog

“Employer voices are all in opposition to this bill.”

That was Kathy Wylde, President of the Partnership for New York City, on a proposed regulation that would force city employers to offer up to nine days each year of paid sick leave.

Almost all employers already offer sick leave, with Ernst & Young reporting that only 12% of all city employees lack it.  Further illustrating the unnecessary nature of the proposed law, the E&Y study reports that small businesses (defined as those with fewer than 20 employees) already offer an average of 7.7 days of paid sick days per year, with larger businesses already offering 8.7. The study further concludes that the proposed new burden would cost private-sector employers an astounding $789 million annually, with nonprofits and small businesses carrying $189 million of that burden.  Providing another metric, the report calculates that implementing the regulation would cost businesses 48 cents per hour, per employee.  The struggling construction, utility, hospitality and restaurant sectors would be particularly hard-hit by the proposed rule.

Proponents of the entitlement offer their own study, but their report sampled only 1,200 people in comparison to the 414,000 sampled by E&Y.  The analysis concludes, “There is a growing sentiment among employers that paid sick leave is the ‘straw’ that will break their will to continue to grow or even to operate here.”  In an economy and job market that continue to struggle, how does that serve the interests of employers, employees or city residents generally?

Fortunately, Council Speaker Christine Quinn remains strong against the potential job-killing regulation, despite pressure from labor organizations and activists detached from the everyday realities of hiring workers and keeping a business above water.   New York business owners and residents interested in the city’s economic vitality should call Speaker Quinn and tell her, “keep up the good work.”