STUDY SHOWS BLEAK ECONOMIC OUTLOOK IF PAID LEAVE IS PASSED

Date: February 29, 2016

STUDY SHOWS BLEAK ECONOMIC OUTLOOK IF PAID LEAVE IS PASSED

STUDY SHOWS
BLEAK ECONOMIC OUTLOOK IF PAID LEAVE IS PASSED

ANNAPOLIS
(February 29, 2016): A study on the potential economic impact of implementing
state wide paid sick leave sheds light on the staggering future costs for small
businesses in Maryland. Conducted by the National Federation of Independent
Business Research Foundation, the Maryland chapter of NFIB is making the
results public today, in hopes of educating lawmakers on the detrimental impact
of such an action.

“The study
shows unequivocally that Marylanders will not only lose thousands of jobs, but
the economic impact of this mandate will be to the tune of billions of
dollars,” according to NFIB Maryland state director, Mike O’Halloran. “While
the legislature continues to pass these costly bills, they tend to forget that
there are millions of small businesses out there that don’t make a dime if
their employees aren’t there to work. It’s our job to enlighten them of the
reality of imposing more regulations”

The report
analyzes the potential economic impact that Senate Bill No. 472 (SB472) and
House Bill No. 580 (HB580) will have on Maryland private sector employment and
production. It shows that the new mandate would impose costs on employers in
the forms of compensation costs associated with paying workers taking paid sick
leave, lost production due to more workers taking leave, and new paperwork and
recordkeeping costs incurred by complying with the mandate.  Assuming
passage and implementation of the mandate in October 2016, over 8,500 MD jobs
could be lost by 2026, and Maryland real output could decrease by over $1.0
billion by 2026.  The cumulative real output lost between 2017 and 2026 is
estimated to be $7.0 billion.  Small businesses would bear 61 percent of job
losses and 56 percent of lost sales.  

“The Maryland
economy is barely beginning to recover from near economic disaster. The last
thing any of us need is another costly mandate to deter growth. This study
shows a staggering decrease in economic output thanks to paid leave and that
will impact employers and employees alike,” continued O’Halloran. “Anytime
there is a proposal to mandate a new benefit, law makers must have a discussion
of cost because in the real world everything has a price tag. We implore
supporters of this legislation to take a good, hard look at this study as well
as the poll we recently conducted and decide for themselves if the small
business sector can afford to absorb these costs and still continue to employ
people.”

O’Halloran is referencing
a recently released Gonzales poll conducted earlier this year that shows voters
overwhelmingly oppose mandated leave when they become aware of the sacrifices
it will incur. “66% of voters saying they oppose this mandate if it costs jobs
or hours coupled with this study indicating Maryland will lose billions of
dollars should be waking up legislators to the fact that the public is more
concerned about being employed than forcing business owners to pay for a
mandate they can’t afford,” concluded O’Halloran.

For more detailed
information on the study, please click here: https://www.nfib.com/assets/NFIB-Maryland-Paid-Sick-Leave-Study.pdf

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