More Small Businesses Would Be Hit by New Paid Leave Bill

Date: January 31, 2017

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The first move on paid sick leave in 2017 may have come from Gov. Hogan, but Democratic advocates of the workplace mandate didn’t waste any time putting out their own proposal.

Under House Bill 1, businesses with at least 15 employees must afford workers the opportunity to earn an hour of paid sick leave per 30 hours worked. All employees who work at least eight hours each week would be eligible for the benefit. For employers with fewer than 15 employees, workers would have to be able to take unpaid sick leave.

Hogan’s plan, meanwhile, is not so expansive. Businesses with 50 or more employees would be required to offer 40 hours of paid sick leave per year, and employees could roll over a maximum of 40 hours of paid leave each year. Companies with fewer than 50 employees that still offer paid sick leave would be able to exempt the first $20,000 from their income taxes. Seasonal employees who work fewer than 120 days in a 12-month period would not be eligible for paid sick leave, but part-time employees who work at least 30 hours would be covered.

However, NFIB/MD State Director Mike O’Halloran told The Baltimore Sun that businesses that can afford these policies already offer them and those who can’t will be forced to cut hours or jobs. “Whether it’s 50 or 15, employers believe it should be left to them and their employees to determine what they can afford,” he said.

NFIB/MD remains opposed to imposing a paid leave mandate on small businesses. We believe you should have the flexibility to run your business as you see fit and as you can afford to do. As the paid leave debate heats up again in Annapolis, NFIB will need your help to fight back. CLICK HERE to take our paid leave survey and weigh in on how these battling bills would impact your business.

Related Content: Small Business News | Economy | Maryland

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