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Paid Sick Leave Mandate to Be Considered in Senate Committee

Jun 10, 2014

The Senate Labor and Industrial Relations Committee will consider a California Chamber of Commerce-opposed “job killer” bill tomorrow that will increase the already-high costs of doing business in the state.

AB 1522‚Äč (Gonzalez; D-San Diego) would require all employers, large and small, to provide all employees in California with paid sick leave. The bill contains provisions for statutory penalties as well as litigation for alleged employer violations.

CalChamber Policy Advocate Jennifer Barrera gives reasons to oppose the paid sick leave mandate in AB 1522.

Increased Costs

The bill would require that all employers provide any employee who has worked in California for seven days with paid sick leave, at an accrual rate of one hour for every 30 hours worked. Any unused sick leave accrued in the preceding year could be carried over to the next year, which is a significant change in existing law.

While many employers voluntarily offer sick leave for full-time employees, mandating that employers provide sick leave to temporary, seasonal and part-time employees will create a huge burden on employers.

In July 2014, employers in California already will be facing a significant cost increase due to the $1 increase in minimum wage that will take effect. This $1 increase is in addition to the other cumulative costs employers are already facing, including increased taxes under Proposition 30, increased workers’ compensation rates, loss of federal unemployment insurance credit, increased energy costs, and increased costs associated with the implementation of the Affordable Care Act.

California employers cannot absorb all of these costs and also be forced to provide paid sick leave, without cutting other costs, such as labor.

Accordingly, AB 1522 will have an impact on jobs as well as future growth.

Visit CalChamber’s Daily Headlines page for comprehensive coverage of AB 1522.

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