Executive Budget: Paid Sick Leave

May 6th, 2020

February 24, 2020

RE: Executive Budget Proposal Article VII, ELFA Part J:

MEMORANDUM IN OPPOSITION

Unshackle Upstate, a non-partisan, pro-taxpayer, pro-economic growth, education and advocacy coalition made up of business and trade organizations from all parts of Upstate New York, support these small business tax cuts with hope the proposal can be modestly expanded.

In recent years, New York State has introduced several employer mandates that add new burdens to the state’s already harsh regulatory environment. New paid time off programs like the state’s expansive paid family leave program and paid time off for voting have added costs and scheduling challenges for employers, particularly the state’s small businesses. These new paid leave programs, paired with increases in the minimum wage and other new regulatory challenges, have made New York’s business climate even more difficult for all employers.

The Executive Budget includes a new mandate requiring all employers to provide sick leave to their employees each calendar year. Employees shall accrue sick leave at a rate of not less than one 8 hour per every thirty hours. Specifically, the proposal would require:

• employers with 0-4 employees to provide five unpaid sick days each calendar year
• employers with 5-99 employees to provide five paid sick days each calendar year
• employers with 100 or more employees to provide seven paid sick days each calendar year

As per the Executive Budget proposal, employees may use leave for the diagnosis, care or treatment of an existing health condition, or preventative care for themselves or a family member.

This new paid sick leave program will be yet another paid time off mandate that employers must contend with, increasing the costs of doing businesses in New York State.

The record keeping and notification requirements included in this proposal creates a significant challenge for small businesses, non-profits and other employers throughout the state. Businesses or entities lacking adequate HR support will have added time constrains complying with these new mandates and would likely face onerous fines for failing to do so. Additionally, the broad definition of family will add to the labor costs and scheduling challenges.

Unshackle Upstate has consistently advocated for policies that make New York a stronger place to do business. This new paid sick leave program will increase challenges for employers, particularly New York’s small businesses, and make our business climate even more challenging.

For these reasons, Unshackle Upstate opposes this proposal.

Contact:
Michael Kracker, Executive Director
716.541.1755
Michael.Kracker@unshackleupstate.com