California Passes Law Mandating Paid Leave

Date: September 15, 2014

Law Another Burden on Small Business

Last Wednesday, California Gov. Jerry Brown (D) signed into law a bill that requires almost all employers to provide a minimum of three paid sicks days to their workers each year. Employees will accrue one hour of paid sick leave for every 30 hours worked. The law, which applies to both full-time and part-time workers at businesses of all sizes, is expected to impact at least 6.5 million employees who currently have no paid sick days. It goes into effect on July 1, 2015. Connecticut is the only other state to require paid sick time, but NFIB sees it as an emerging trend across the country.

What It Means for Small Business:

The legislation was strongly opposed by business groups, including the National Federation of Independent Business. John Kabateck, NFIB’s California Executive Director, said, “Our small business owners, who make up more than 99% of the employer community in California, already face an increase in minimum wage, among the highest taxes and more regulations than any other state. This will only serve to eliminate any plans small employers have to grow and expand their businesses.” Kabateck also said that California sets a poor example because the law exempts in-home health care workers, who are public employees, while applying to all private-sector employers. He said, “That’s outrageous. It’s a classic example of double standards and hypocrisy in Sacramento.”

Additional Reading:

The U-T San Diego, the San Francisco Chronicle, the Los Angeles Times all report on the new law. Fox Business also ran an interview with NFIB’s Kabatech on the subject.

Related from NFIB:

NFIB/CA Releases Statement on Signing of Assembly Bill 1522(Mandated Paid Sick Leave)

NFIB Small Business Impact Studies: Economic Effects of a Paid Sick Leave Mandate on California Small Businesses

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