Federal Paid Sick Leave Bill Could Become an Important Issue
While everyone on Capitol Hill is focusing on the healthcare reform bills that are making their way around Congress, there is another bill floating somewhat under the radar that also may have a significant effect on employer-provided benefits. Introduced in May under HR 2460 and SB 1152, the Healthy Families Act of 2009 would require employers with more than 15 employees to provide workers with up to seven days of paid sick leave each year. The bill is not new to Congress, as former versions were introduced in 2005 and 2007; but this latest version contains additional provisions – as well as unprecedented support from the White House – that just may increase its chances of passage.
As with previous renditions, this legislation would guarantee employees paid leave (up to an annual maximum of 56 hours) to attend to their own or a family member’s illness, or to use for preventive care such as doctor’s visits. However, this new form of the bill allows employees to accrue the leave at a rate of one hour for every 30 hours worked and begin using it after 60 days of employment. In addition, the accrued leave would carry over from year to year, but may not exceed the 56-hour limit unless the employer permits additional accrual. The Act also provides leave for employees who are the victims of domestic violence, stalking or sexual assault.
Supporters say the bill is needed in order to prevent employees who are sick from coming to work and infecting others for fear of losing their jobs because they lack the necessary leave. Proponents believe this is especially relevant due to the recent swine flu epidemic. In addition, many single parents lack the flexibility to stay home when a child is sick. The bill’s author, Representative Rosa DeLauro (D-CT), stated that nearly half of private sector employees (57 million workers) lack paid sick leave, including 79 percent of the lowest-wage earners in the country.
The legislation is receiving support from various advocacy groups, and President Obama has already announced that he would sign the bill if it passes both houses. However, various business groups argue that the Act would raise costs even higher for many employers that are already struggling with the effects of the current recession. Other business leaders say they are in support of additional flexibility for employees, but are opposed to the bill because it represents government mandate that could potentially cause more damage to small businesses than good. While the Act’s current language specifies that employers with sick leave policies already in place will not need to modify current policies permitting additional paid time off, some opponents see the legislation as a precursor to even tighter government provisions.
In response, the Society for Human Resource Management (SHRM) has proposed a comprehensive public policy outlining a new set of workplace flexibility principles that could serve as a reasonable alternative to the Healthy Families Act. This policy, which was presented by SHRM Chief Operating Officer China Miner Gorman at a recent congressional hearing of the Act, encourages employers to provide paid leave voluntarily without being encumbered by the complexities of federal rules.
It remains to be seen whether the Act in its current form has the necessary support to carry it through Congress or whether the alternatives proposed by SHRM will become more prevalent. However, the continued push for this legislation is a clear indication that healthcare reform is not the only benefits-related subject that could have an impact for America’s employers in the coming year.
For more information on this topic, please click on the links below:
Text of HR 2460 from the Library of Congress
Bill Would Guarantee Up to Seven Paid Sick Days (NY Times)
Mandating Sick Leave (Washington Times)
SHRM, Democrats Tangle over Paid-Sick-Days Bill
SHRM Offers New Approach on Employee Leave
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Important Notice: Hill, Chesson & Woody does not engage in the practice of law, accounting, or medicine. Therefore, the contents of this communication should not be regarded as a substitute for legal, tax, or medical advice.
July 31, 2009
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