Wed 20 Aug 2008
Mandatory Paid Sick Leave Could Prove Detrimental
Posted by Megan Dorn under Business and Politics, Small Business
Ohio voters will decide whether or not to approve the Healthy Families Act on their ballots come November. The act, which will guarantee most full-time employees seven paid sick days a year, could cause Ohio to lose 75,000 jobs over the next five years, according to a recent study by the National Federation of Independent Business.
About 20 percent of those lost jobs would occur in small businesses that employ 20 or fewer employees, even though they are exempt from the mandate. Why? Because it would cause large businesses to cut jobs or reduce production, therefore hurting small business suppliers, according to researchers. Companies that don’t already grant at least seven days will also face up to 15 percent in increased labor costs. In the long run it could cost Ohio employers $1.17 billion in added bookkeeping and management costs and $9.4 billion in lost sales, the study said. The act could also force cuts in other employee benefits such as health care or vacation.
Last November, San Francisco voters approved the nation’s first mandatory paid sick leave law, which took effect last February. Today Ohio is the only state with such an act on its upcoming ballot, but several other states are looking into mandated paid sick leave. They include Connecticut, Florida, Maine, Maryland, Massachusetts, Minnesota, Missouri, Montana, North Carolina, Pennsylvania, Vermont and Virginia.
Voters need to be weary of jumping on the paid sick leave bandwagon. It may sound nice to have seven guaranteed sick days throughout the year, but those days aren’t going to do you any good if you become one of the predicted 75,000 who lose their jobs in the process.

