(July 28, 2008) A California Chamber of Commerce-opposed bill that unreasonably expands employers’ costs and liability by mandating a specific paid sick leave policy will be considered August 4 by a Senate committee.

AB 2716 (Ma; D-San Francisco) mandates, without exception, that all employers provide paid sick leave to an employee after seven days of work in a calendar year to care for their own illness, or to provide care to a sick child, spouse, domestic partner or other relative.

AB 2716 will have an impact on all employers, regardless of the level of sick leave currently provided.

Due to both the administrative burdens and the additional cost to provide sick leave, public employers believe that AB 2716 will severely restrict the use of extra help and seasonal employees. This loss of flexibility will increase costs and reduce efficiencies in the delivery of services to the public by cities and counties.

For counties, AB 2716 poses a particular problem for In-Home Supportive Services (IHSS) employees. It is unknown which entity, the county, the state, or the public authority, would be considered the employer of record, and therefore responsible for funding sick leave to approximately 300,000 providers.

No federal funds would be available for hours not worked, which means that for every hour of paid sick leave taken, a replacement worker must also be provided wages to take care of the in-home client.

The ever-increasing burden of costly mandates on employers can cumulatively result in lower wages, reducing available health insurance, limiting training programs and job loss or reduced work hours. Job loss translates to lower tax revenues from employers and employees, as well as increased use of unemployment insurance.

The CalChamber believes that in an already-troubled economy, California should be seeking ways to stimulate job growth and avoid forcing costly mandates onto employers.

Action Needed

AB 2716 will be heard by the Senate Appropriations Committee on August 4. Urge your senator and committee members to oppose AB 2716.

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