The Greater Philadelphia Chamber of Commerce (GPCC) continues to stand opposed to the Mandatory Paid Sick Leave legislation that currently is before Philadelphia City Council. Last week at Council, the bill that would require private sector employers to provide paid sick leave for all employees working within the City of Philadelphia was removed from the Suspension Calendar to the Final Reading Calendar. The bill was amended during yesterday’s City Council session, readying it for a final passage vote as soon as June 9.
The amendments are:
- Exclude collective bargaining
- Exclude pool employees
- Exclude interns
- Clarify language for the use of paid time off
- Reduce the accrual rate for large businesses to 56 hours from 72 hours and from 40 hours to 32 hours for small businesses
We understand the good intentions of the bill’s sponsors and we appreciate their willingness to propose amendments in an effort to improve the legislation. However, the proposed amendments still do not address the basic problem of the added costs, which will disproportionately fall on the small business sector. Some employers just cannot afford to pay this benefit.
A study commissioned by the GPCC to determine the economic costs of mandated paid sick leave on city businesses found that the bill would create a financial and administrative burden on employers and cost the city both jobs and tax revenue. The study, written by Dr. William Dunkelberg, Professor of Economics at Temple University and Chief Economist of the National Federation of Independent Businesses, found that the additional burden on employers would cost Philadelphia businesses from $350 million up to $752 million to comply and implement the law. Furthermore, estimates of an increase in labor costs would result in a reduction in employment of about 4,000 lost jobs. A copy of the full report can be found by clicking here.
How can you help?
It is critical that the Council hear from businesses as to how this bill would impact them. This bill has been amended and will be up for a vote as early as June 9. Please contact Members of City Council and ask them to oppose this bill in any form. Our city cannot afford another regulatory burden on its businesses.
