(June 25, 2008) California will lose approximately 370,000 jobs within five years if a California Chamber of Commerce-opposed “job killer” bill becomes law, according to a study released yesterday.

The CalChamber participated in a news conference yesterday to call attention to the study on the impact of AB 2716 (Ma; D- San Francisco), which unreasonably expands employers’ costs and liability by mandating a specific paid sick leave policy.

The study, released by the National Federation of Independent Business (NFIB) Foundation, evaluated the economic and small-business effects of AB 2716.

AB 2716 mandates that all employers provide paid sick leave to an employee after seven days of work in a calendar year to care for the employee’s own illness, or to provide care to a sick child, spouse, domestic partner, other relative, or some other person designated by the employee. The mandate would extend to all employers and all employees, as specified. There are no exceptions. The provisions of this bill will have an impact on all employers, large and small, regardless of the level of sick leave currently provided.

Marc Burgat, CalChamber Vice President of Government Relations, speaks at a State Capitol news conference announcing the results of the NFIB Foundation study on projected job losses if AB 2716 becomes law.

“The ever-increasing burden of costly mandates on employers can cumulatively result in lower wages, reducing available health insurance, limiting training programs and -- in the worst case scenario- job loss or reduced work hours,” CalChamber Vice President Marc Burgat said during the news conference. “Job loss translates to lower tax revenues from employers and employees, as well as increased utilization of unemployment insurance. In an already-troubled economy California should be seeking ways to stimulate job growth and avoid forcing costly mandates on employers.”

According to the study:

• California employers will be taxed with a $4.6 billion mandate;
• The new regulations will cost California companies an estimated $59.3 billion in sales in the first five years of enactment;
• More than half of that, 36.2 percent of total sales loss, will be losses to small businesses;
• Major job losses will occur in retail trade, construction and professional services.

The study analyzes the results of an input-output system that produces short- and long-term forecasts for detailed industry sectors when external shocks are applied. It estimates future changes in jobs, output (sales), income and productivity for California by business size and industry. Estimates are made by comparing forecasts without change to forecasts with change — in this case, proposed legislation.

The full study can be read on the NFIB/California webpage at www.NFIB.com/CA.

Audio

 Hear Argument Against Sick Leave Mandate

Action Needed

AB 2716 will be heard today in the Senate Labor and Industrial Relations Committee. Contact your senator and members of the committee and urge them to oppose AB 2716.

For a sample letter visit, www.calchambervotes.com.

Staff Contact: Marti Fisher

Additional Materials

Labor and Employment