Advocates are pushing for a law that would require businesses to grant paid sick leave in New York City, following up on a similar effort two years ago.
Such a law exists in Connecticut, as well as the District of Columbia, Seattle and San Francisco, BusinessWeek notes. Those in favor of such laws typically argue that they will provide much-needed assistance to low-income workers including women and minorities, saying that white-collar professionals are often compensated for sick days. Those who oppose such policies argue that employers are free to institute paid sick days in the absence of a law, and say that some workers abuse the privilege by claiming illness when it is not the case.
A study by the Institute for Women's Policy Research (IWPR) found that San Francisco's law had positive effects. Employers generally reported no HR compliance difficulties and said that their profitability was not impaired by the law.
"There hasn’t been a loss in employment and there haven’t been large negative effects on employers," said Kevin Miller, senior research associate with IWPR. He noted that many people cite high business costs as a reason not to implement the policy, but the organization's research indicates otherwise.
The research indicated that employees generally used three sick days even if they had five or more available, with 25 percent not taking a single paid day off for illness. While it does not help businesses directly, the study also found that parents with sick days were significantly less likely to send children to school despite an illness, potentially improving overall population health.
Possible benefits of paid sick leave
IWPR has also analyzed the effects of implementing paid sick days and estimates that they would lead to substantial savings and reduced turnover, enough to offset any loss of productivity. It would also encourage employees to seek healthcare promptly when necessary rather than postponing needed medical attention due to employment concerns.
Given that most workers depend on employer-sponsored coverage and health insurance cost growth is a major concern for businesses, the policy could also mean direct cost savings for organizations. Employee benefit consultants might be well-positioned to help a company determine the specific effects paid sick leave could or does have on their employee health costs.
