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Home / Press Releases - 2007 / Paid Family Leave: A Step in the Wrong Direction |
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Paid Family Leave: A Step in the Wrong Direction |
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Written On: May 08, 2007 |
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Written By: Richard Davis |
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OLYMPIA — Today's signing of SB 5659 by Gov. Chris Gregoire makes Washington the second state in the nation to require employers to grant employees up to five weeks of paid leave to care for a newborn or newly-adopted child. Unfortunately, the benefit comes with an as-yet unknown cost to employers and workers and jeopardizes the competitiveness of Washington businesses at a time of growing economic uncertainty.
AWB President Don Brunell, who wrote the governor urging a partial veto of the legislation, says, "We understand the concerns that led to this legislation. While we objected to the bill as passed, we now intend to work with its supporters through the task force to create a solution that’s fair to all involved."
Brunell says AWB has several specific concerns. Having rejected the payroll tax on employees originally proposed, the legislation now establishes a benefit without identifying how to pay for it. The program launches with one-time funding from the supplemental pension fund. It imposes a particularly heavy burden on small employers who cannot afford to leave positions vacant. And it reduces the flexibility employers now have to work constructively with their employees to accommodate significant life changes.
AWB had asked the governor to veto all portions of the bill except for the section creating a task force to study how best to achieve the legislation's objectives. As it is, the legislation represents a promise without a plan. As presented early in the legislative session, the benefit – pegged at a maximum of $250 per week – was covered by a payroll tax of pennies an hour. The fiscal note on the bill estimated that administrative overhead would claim more than 40 percent of the program's costs. Making sure the benefits reach the employees that need them most remains a major consideration.
Washington employers need the security of knowing how their businesses will be affected before the state embarks on an uncertain, potentially costly, journey. For example, the unemployment insurance impact on small employers who may have to layoff employees as a result of this mandate could cripple marginal enterprises.
The work of the task force established by SB 5659 may improve the legislation.
"We will work with the governor, lawmakers and the task force on behalf of employers in Washington to preserve the competitiveness of our state's industry," Brunell said. "It would have been far better for the Legislature to wait to pass legislation until the effects were clearly understood. I know we could have done better."
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