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California Chamber argues COVID-inspired employee-leave bill will hurt small businesses

NORTHERN CALIFORNIA RECORD

Sunday, November 24, 2024

California Chamber argues COVID-inspired employee-leave bill will hurt small businesses

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Senate Bill 1383 would require businesses with more than one employee to grant mandatory 12-week paid leaves of absence in light of the COVID-19 pandemic. | stock photo

SACRAMENTO — The California Chamber of Commerce calls a new Senate bill a job-killer, saying it will harm small businesses, according to a press release issued by the Chamber.

Senate Bill 1383 was introduced by California Sen. Hannah-Beth Jackson (D-Santa Barbara). Her bill makes it mandatory for a 12-week leave of absence for all employees of businesses that have more than one employee. 

CalChamber is joined by more than 85 associations in its opposition of the bill, the release states.


California Chamber of Commerce Executive Vice President Jennifer Barrera | https://advocacy.calchamber.com/

“Now is not the time to place costly burdens on employers who are struggling to reopen and rebuild,” CalChamber executive vice president Jennifer Barrera said in the release. “To be clear, the bill is not limited in scope to only address COVID-19. It would disproportionately impact the smallest of employers in California at a time when they can least afford it. SB 1383 will put California’s small businesses out of business.”

CalChamber believes that the bill will pose a burden on employers and will raise their costs, the release stated. The chamber notes that even though the leave is unpaid, there would still be the need to pay for the training of a temporary employee to take over while the employee is on their leave of absence.

The other alternative is paying overtime to current employees to take over for the employee on a leave of absence, which also will cost the employer money.

CalChamber also believes that the bill poses a threat of litigation because it includes a private right of action that will cause employers to pay legal costs when they have to defend themselves in court if they are sued if the employee feels that their boss did not properly provide the leave, interfered with it or denied it, the release states.

The bill also might require employers to maintain the employees' health benefits while they are out on their leave.

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