A small-business owner writes against a bill now in the Assembly.
As a small-business owner who provides sick leave for 10 employees, I still strongly oppose Assembly Bill 2716, which mandates paid sick leave. Mandated expenses — like those contemplated by AB 2716 — end up hurting consumers, businesses and employees alike. This bill is the quintessential lose-lose proposition.
In the face of sudden, drastic cost increases, businesses are forced to cut costs, raise prices or shut their doors. No matter which course is taken, all Californians suffer the consequences.
To generate additional revenue to offset the cost increases imposed by AB 2716, many small businesses will be forced to raise prices. These higher prices will hit our wallets at exactly the wrong time. With rising gas prices and rampant home foreclosures, lawmakers should be finding ways to lighten the financial burdens on California families, not piling them on. Even the employees this bill purports to help will be unpleasantly surprised when they try to spend their sick leave pay, only to find that higher prices mean their money doesn’t go as far.
Some businesses will try to cut costs instead of or in addition to raising prices. Usually, these cost-cutting measures take the form of layoffs. This is especially true when — as in the case of mandated paid sick leave — the costs are higher the more employees you have. For many businesses, the passage of AB 2716 will present a difficult but obvious choice: Cut some jobs, or close the doors and cut them all.
Unfortunately, if paid sick leave becomes government-mandated, employees are more likely to get a different type of leave — the unpaid, unemployed type.
• Mike Cunneen is the owner of Signet Products Inc., a parts manufacturing service in Belmont.
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Yes, the effect to the economny is that prices increase. Everyone pays more for goods and services. If all businesses provide paid sick leave, all costs will go up. Consumers will pay wherever they turn. As a consumer, I'm willing to pay more for such benefits. If I don't pay as a consumer of this product, I will pay as a consumer of health benefits, etc; and I will pay as a taxpayer.
People must face the fact that all goods and services are going up.