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New Connecticut Law Requires Paid Sick Leave. Will the Trend Spread?

June 27th, 2011 ::

By Rieva Lesonsky

Do you have service employees, such as waiters, food service workers or hairdressers, who come in contact with the public? Then you need to know about a major change that will affect you (if you’re in Connecticut) and may affect you in the future if your state follows suit.

After passionate debate, Connecticut is becoming the first state in the nation to require businesses to provide paid sick leave to workers, reports The Wall Street Journal. Legislators debated for 11 hours before passing the bill, which will take effect at the beginning of 2012 after being signed into law.

The bill does not affect all small businesses—only those in the service sector and with more than 50 employees. Only hourly workers are covered, and they only receive one hour of paid sick leave for each 40 hours worked, with a maximum of 5 days per year. Employees are also required to have worked at least 10 hours per week during the previous quarter in order to receive the paid sick leave. In addition, manufacturers, nonprofit organizations are exempt, along with salaried employees, independent contractors, temporary employees and day laborers. Nonetheless, estimates are that some 200,000 to 400,000 workers in the state will be affected by the legislation.

Although Connecticut is the first state to pass such a law, San Francisco, Washington, DC, and Milwaukee have passed mandatory paid sick-leave legislation in the past few years, and similar legislation is pending in California, Massachusetts, Philadelphia and Denver. Will the concept of paid sick leave spread beyond these cities and states?

According to statistics cited by the National Partnership for Women and Families, a backer of the new law, approximately 40 million U.S. workers have no paid sick leave. Among low-wage workers, more than 80 percent do not have paid sick leave.

Many business organizations opposed the legislation, saying it would place an unfair burden on employers. But consider what happens when sick employees are forced to come to work or lose pay. (In some cases, they may even fear losing their jobs). First, it goes without saying they’re likely to infect co-workers (and you), hurting productivity overall.

More importantly, workers who come in contact with customers (as these service workers do) could spread infection, leading to bad publicity for your business. In the worst-case scenario, they could even lead to a lawsuit. For many businesses, protecting yourself against that possibility would be worth the cost of paid sick leave.

Image by Flickr user Jade Jackson (Creative Commons)

The views expressed here are the author's alone and not those of Network Solutions or its partners.

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Posted in Business Law, Compliance, Small Business, small business, Workforce | 1 Comment »

  • Bill in Hawaii

    In theory I respect the concept and there in lies the problem with government and business.  How many great ideas can a small business support; universal healthcare, union scale wages and benefits, labeled menus, no saturated fats on the menu, lower salt diets, warnings about allergic agents, no smoking laws, etc etc. and now paid sick leave?  As a restaurant operator I ask how much cost does that add to the average menu item? Though each idea alone does not put the menu item out of reach eventually the totals of government mandates push the price of the item beyond what the public will pay, the result being fewer customers, lower profit and eventually the dissolution of the business.  If it’s not profitable the business desists.  The net gains being government has provided the worker out of a job, the business out of operation and yes the government without a tax base to support itself. 
     
    We all want good things but we can’t just demand them and expect everything to be wonderful.  Government is a myriad of small agencies and bureaucracies that each takes the profits from business to regulate business.  Too much government and no profits lead to an eventual collapse.  It is all too evident everywhere in the U.S. today. Overregulated industry won’t invest.  Over active government continues to intrude in every business.  Insufficient taxes can’t support the existing government and government employees.  Raise the taxes, less business activity and fewer jobs.  It is a vicious cycle that our politicians can’t get away from.  It will lead to everyone’s’ collapse. 
     
    We need more balance and long term views not off-the-cuff laws and regulation.  Who in government seeks to measure the cumulative effect of all its good intentions? Unfortunately nobody and that’s why we are in the rotten economy we have now.  Government has gotten so big it can’t see itself.  Businesses can see themselves and when they see they can’t make money for themselves they are certainly not going to do it just for the benefit of government. 
     
    Let’s look for some balance here and we might all survive and eventually prosper.  We have had our high standard of living here as a result of capitalism not by government mandate.  Mandates can work but their cumulative effect must be recognized.  Growth and eventual change are natural under usual business models.  Change by the demand of government assures no profit and no benefit if it hinders and ceases business activity.  Legislatures are about political promises and no view to reality.  We all need a good reality check!