Mandated benefits and jobs

Chris Wodke

http://www.summittrainingpublications.com/

Public policy sometimes has unintended consequences.  In November 2008,  City of Milwaukee voters approved a referendum supported by “9 to 5, National Association of Working Women.  The policy mandated the following:

• All employers shall provide a minimum of one hour of paid sick leave for every 30 hours worked by an employee. 
• Employees of small business will not accrue more than 40 hours of paid sick leave in a calendar year, unless the employer selects higher limits.
• The ordinance applies to all employers within the city, except the federal government, the state of Wisconsin, including any office, department, agency, authority, institution, association, society or other body of the state, including the legislative and judiciary, or country or local government.

The Metropolitan Milwaukee Association of Commerce has been fighting the ordinance in court. The initial court decision was made for the MMAC. The most recent decision sided with the city. Expect further fights.

The MMAC contends the ordinance is a job killing resolution.  The law will make Milwaukee a high cost island since surrounding counties do not have this requirement.  The MMAC is going to fight these types of policies since they feel they are an advocate for business and job creation. .  Today Gov. Walker will sign the bill into law. So at least the law is consistent statewide and defuses that argument.

The other side claims the benefits of the law including:

• Lacks of sick days affect mostly workers at the bottom of the pay scale.
• When workers have no sick days, they come to work sick. This can infect others, and prolong illness. This increases cost to the healthcare system and for employers.
• Sick employees who work with food could affect the health of the general public.
• Employees who stay home to care for sick family members risk losing their jobs.
• Without sick time it is difficult for employees to set up medical appointments for routine and medical care.
• When employees have no sick days they cannot care for sick family members, pushing them into the healthcare system. This again increases costs.

The law is well intended. It does increase the costs for business and may stop a business from expanding and jobs being created.  It would be better to let the marketplace decide if an organization can offer these benefits or for government to provide incentives for a business that does offer them

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