Why Legislated Paid Sick Days May Not Be Win-win
Many believe that government mandated paid sick days are a good thing. I am not one of them. I believe that government entities should stop messing with the employment relationship employers have with their employees. I don't think legislators get that what they mandate in one area will usually need to be taken from another. And, legislators, many of whom have never had a real job, real responsibilities, commitments to employees, or profit and loss responsibility in a business - my local senator, as an example, whose only job as an adult has been to work for her political party - make blanket decisions that fail to consider industry, region, and individual company and workforce needs.
In the case of mandated paid sick days, here are several results I would predict.
- Paid time off (PTO) policies and opportunities will become much more difficult to offer as paid sick days will need differentiation. Why is this bad? Because PTO represents real progressive interaction between employer and employees. The purpose of a Paid Time Off (PTO) policy is to provide employees with flexible paid time off from work and to reduce unscheduled absences and the need for supervisory oversight. PTO treats employees like adults.
- Employers who are struggling and smaller employers may be forced out of business by the expense.
- Other employers may struggle to manage the costs of paying overtime expenses to provide coverage for employees off of work on paid sick days. This is one hidden cost to think about.
- Employees may, additionally, have to prove that they or family members were actually sick. This will result in higher health insurance costs, more doctor visits, and placing supervisors and Human Resources staff in the role of police.
- Marginal employees tend to skate on the edge of such policies as paid sick days, so investment of supervisory and Human Resources' time in disciplinary action may increase.
- Finally, provision of legislated paid sick days might require employers to cut back in other areas such as the amount of paid vacation time and personal time provided. Or, the combination of the expense, and the potentially more frequent marginally necessary doctor visits, could cause employers to pass to employees a higher percentage of health care costs or reduce benefits.
Comments
I admit I had a hard time believing this commentary was not in jest. Your quote: “….And, legislators, many of whom have never had a real job, real responsibilities, commitments to employees, or profit and loss responsibility in a business - my local senator, as an example, whose only job as an adult has been to work for her political party -”
does not indicate you have a very knowledgeable or even a peripheral political background and you also fail to realize that people enter public service to help people overcome plantation ideals such as “staying out of the employer-employee relationship.”
You assume the balance of power is equal in that relationship. Private sector employees in small companies can be fired for taking a sick day. Period. Not to mention the denial of basic human care such as the offer of health insurance.
You go on with further ignorance:
“Employees may, additionally, have to prove that they or family members were actually sick. This will result in higher health insurance costs, more doctor visits, and placing supervisors and Human Resources staff in the role of police.”
If the worker would not have a sick day benefit until a legistative decision makes it so, a fax for the doctor visit isn’t such a hardship. Many health providers will do it without an actual visit. You imply using the healthcare system results in higher costs? Why? Preventative care and care that is applied on time, when needed, causes a reduction in costs–as less critical and costly care is administered on an emergency basis. I believe from the tone of this article you truly understand that workers who go to the doctor should not do so. Do you go to the doctor? Do you have children that go to the doctor? Does your company believe this is a problem? I believe the HMOS who have CEOs earning billions in compensation, still want HMO members to USE their benefits. Do you have a background in healthcare cost factors? Please do your research before coming out with statements that other HR professionals may mistake for accurate information.
Your claim that legislated sick day benefits could cause a cutback on other days such as vacation or other paid time off also makes no sense. Obviously, if the sick day is legislated, it is hard to fathom an employer who offers vacation and other paid time. Why would they do that and withold sick leave? Sick leave would be the priority, no?
This was disturbing and further polarizes employers and employees who may share common goals of health and wealth.
Susan: You couldn’t be more right, or less ignorant! Thanks for telling it like it is. Ohio is most likely going to have a paid sick days issue on the ballot here in November. It will make running a business in Ohio even harder than it already is. Then we’ll hear from the politicians how they are doing all they can to bring business in and create new jobs. Ohio will continue to spiral downward and people and businesses who can get out, will.
Susan: I agree with you completely. Of course, those who abuse these kinds of policies and liberal entities such as organized labor and some politicians will not concur. I would like to point out one more consequence of this policy- a higher cost to consumers for products and services. Even if companies can afford to, they will not absorb these higher costs out of the kindness of their hearts. You can bet that these costs will be passed on to all of us.
Susan - I agree with you, too. If they do see the need for such legislative measures, why not keep up with the times and mandate PTO? I never use my sick days because I practice healthy habits and am very fortunate to be healthy. This policy will lead to lower salaries overall because the employers will not absorb this additional cost out of their profits (just as they have for increased health care costs).
I have looked into this on several occasions and like you say, this is another issue that should not be regulated by government…isn’t the idea that employers have to compete with one another to stay viable? And isn’t the way to do that by making employment opportunities as attractive as possible to potential employees so that they want to come work for them and stay? Benefits packages come in all shapes and sizes and the way companies design them should be up to the companies themselves. Perhaps the government could offer tax incentives/benefits for companies who offer certain paid leave or other types of benefits (look at it like a community service or charitable donation type of thing??)–this would still provide companies with the choice of how they want to put their benefits packages together while emphasizing how the country values the need to address not only health concerns, but also the time people need to give back to their communities to keep our society and the economy thriving. The employers that will come out ahead are the ones who can retain employees by realizing that the benefits offered need to continually be redesigned so that employees will be inclined to stay instead of leaving every 2-5 years to find something that better suits their needs. The ever-changing dynamics of the workforce require employers to not only update policies in accordance with laws and compliance issues; it is absolutely imperative for all employers to recognize that the human capital within their organization will have stronger work ethics and staying power when they know that benefits that are important to them (such as paid time off)are viewed by CEOs as critical recruitment and retention tools. Government mandates are not what is needed for this…
what IS needed is the ability for companies to “get people on the bus” who can bring about change, and kick those off who wish to remain stagnant.
Susan, you are spot on. I must say though, that many legislators are effective leaders with real world business acumen. And those that aren’t, well let’s remember how they got to the capitol! This is just one reason that our votes are very important.
Hopefully common business sense will prevail.
I agree completely. I would bet any employee would prefer a PTO system, but how do you find balance with the companies who refuse to offer paid time off of any kind?
You are so right! I try and tell our state legislators the same thing. When you increase benefit cost where there is no need you force an employer to reduce elsewhere. In California the socialist democrats are trying to double the benefits for worker’s compensation. They base their reasoning on the fact that less benefits have been paid out. But what they don’t say (or know?)is that it is due to a better structured worker’s compensation program (which helped reduce worker’s compensation premium which were astronomical) state wide and not denials of benfits. If this bill passes employer’s AGAIN will be faced with ridiculously high premiums, which will affect other areas, such as employee benefits. Legislators need to be part-time workers. The fact that they spend far too much time thinking up stupid things to enact into laws without understanding the impacts tells us that.
As a Bay Area business impacted by the San Francisco Sick Leave Law, you couldn’t be more right. The things you ‘predict’ have been witnessed here. If Pokey top would like a reality check, visit the Bay Area small business community!
My current employer is US based with affifilate organizations in UK/Ireland and Canada. UK/Ireland distinguish between sick and vacation. In Canada we currently have a PTO plan however it does not work. By law we are required to pay vacation - we have had employees use all PTO due to sickness - what then?
Any suggestions for Canada and PTO policies?
Thanks
Pokey top has visited the small business community in the Bay Area, Susan. Have you waited tables? Have you done any actual work with no sick leave or paid time off? Please don’t feel the staff of these small businesses are greedy sharks who take a piece of their pie by working for the small business person. Do they deserve equity or are they not people too? Just hire young children as you could get them while they are free of health maladies!!!
Have any of the commentators worked without benefits? I would like to propose a challenge: give up your sick leave for a year. Pick one of the companies you support and work as their unbenefited staff work. Please share the results. Susan, you did not answer the questions I posed. I mean no disrespect and usually enjoy your articles but please walk a mile in ALL shoes…not just the business owners’ shoes. In an ideal world people wouldn’t NEED sick days.
Liberty in California is a riot!
Re: Legislators:”….They spend their time thinking of stupid things to enact into law..”
Does Liberty recognize California is in a state budget crisis of monumental proportions and no one, especially Arnold S. is trying to fix it except the legislators from both parties?
Does the bubble you live in not utilize schools, hospitals, roads, police, fire, universities, parks, Courts, transportation etc????
When the legislators stop thinking up “stupid things” like solving this problem without closing the state down–they can concentrate on more important things like dumb worker safety to save Liberty workers’ compensation premiums.
About a year ago I moved to the US from Canada where I will be for 3-4 years. I had been with 3 mid-to-large sized employers in my career of 15 years.
PTO has been a big lose-lose situation for me. Unfortunately, I tend to get bad colds usually 2 or 3 times during the winter months.
I’m forced to choose between staying home and burning my vacation time (12 days) or coming into the office, delaying my recovery (often causing my cold to linger), and exposing my co-workers to illness.
I ended up only taking 3 days off as sick days which reduced my vacation to 9 days. I was very sick at least another 4 days, but came to the office and tried hard to stay away from others to prevent their infection.
I don’t know much about legislating the paid sick days, but the PTO situation of combining sick days with vacation days doesn’t seem to be about treating employees like adults. An adult doesn’t choose to willingly expose their co-workers when they should be at home trying to get better.
Clearly, PTO time is just a method to lower costs for employers. It taxes the average worker by reducing the amount of vacation time they are allowed to take.