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.”

Earlier this week, InsideHealthPolicy.com reported:

Republican aides on Capitol Hill are circulating sections of an independent audit that found significant shortcomings in HHS’ financial management — including noncompliance with federal laws and a $3 billion difference between the department’s own balance sheet and records maintained by the Treasury Department. HHS acknowledged “material weaknesses” in its financial management systems and said some of those issues will be worked out as the department implements a new reporting system this year.

Below are some of the specifics, care of Senator Tom Coburn:

HHS Is Not In Compliance With Federal Financial Management Law. According to the HHS Inspector General’s review of Ernst & Young’s financial audit of HHS, “HHS’s financial management systems are not compliant with the Federal Financial Management Improvement Act of 1996.”

Nearly $2 Billion Taxpayer Dollars Are Stuck in Limbo. “As of September 30, 2010, the audit identified approximately 102,500 transactions totaling an approximate $1.8 billion that were more than 2 year s old without activity.”

Nearly $800 Million Dollars “Could Not Be Explained” Differing Between HHS’ Records and Treasury Department Records. “Based on our review and discussions with management, we noted differences of $794 million that could not be explained.”

Some Processes and Procedural Manuals Have Not Been Updated Since the 1980s. “HHS’s formalized policies and procedures are out of date and may be inconsistent with actual processes taking place….For example, we noted that certain policies and procedures, including certain accrual processes, had not been updated since the mid-1980s.”

Current HHS Personnel Need Training To “Complete Their Day-to-Day Responsibilities.” “Further, we noted additional training on the financial systems was needed to enable HHS personnel in their ability to access needed information from the system to complete their day-to-day responsibilities – including the preparation of reconciliations, research of differences noted, and the ability to identify and clear older “stale” transactions dating back several years.”

America, meet the federal department charged with implementing and managing the most significant provisions of the monstrosity known as ObamaCare.