HOUSE TO HEAR DIRECTLY FROM MARYLAND SMALL BUSINESS: PAID LEAVE WILL NOT END WELL

Date: March 01, 2016

HOUSE TO HEAR DIRECTLY FROM MARYLAND SMALL BUSINESS: PAID LEAVE WILL NOT END WELL

HOUSE TO
HEAR DIRECTLY FROM MARYLAND SMALL BUSINESS: PAID LEAVE WILL NOT END WELL

ANNAPOLIS
(March 1, 2016): The states leading small business advocacy group, the National
Federation of Independent Business (NFIB) will be testifying before the House
today on pending legislation that would mandate paid leave for employees across
the state. Yesterday, NFIB released the results of a study that clearly
indicated any such mandate will cost jobs and economic output if enacted.

NFIB Maryland
state director, Mike O’Halloran stated prior to his testimony, “I intend to
urge House members to bear in mind the potential negative effects to employment
and production that employer mandates, such as paid sick leave, will have on
the small business community. If mandatory paid leave is enacted, there will be
fewer resources available for benefits that are not required by legislation
including retirement programs and wage increases.”

The NFIB
Research Foundation recently completed an economic study that concluded that if
implemented, HB 580 may lead to over 8,500 jobs lost by 2026, and Maryland real
output could decrease by over $1.0 billion in the same year.

“Mandates such
as these often strike the most severe blow to the small business community and
that was demonstrated in the Research Foundation’s study where it was
discovered that 61% of job loss and 56% of lost sales would stem directly from
the smallest of businesses. Maryland’s economic climate cannot absorb that kind
of hit, nor should it. Employers are more than capable of offering their
employees benefit packages without the government interfering and costing jobs
and revenue in the process,” continued O’Halloran.

Public opinion
seems to agree with O’Halloran. A recent survey conducted by Gonzales Research
and Marketing found support for paid sick leave plummeted when voters were
informed of the impacts pertaining to the mandate. When faced with the correlation
of paid leave to reduced benefits like healthcare and retirement, 77% of voters
opposed implementing the mandate. Finding out that the mandate could mean fewer
jobs or less hours to work led to 66% of voters opposing paid leave.

“Job creating
must be paramount for all lawmakers, not just those in the House. We have heard
from our members, from the voting public and from economic prognosticators that
paid leave, no matter how well intended it may be, will not have a positive
impact on our economy. We certainly hope legislators will listen closely to us
today,” concluded O’Halloran. 

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