Industry leaders have asked state policymakers to consider funding a new proposed leave program with the state’s $20 billion budget surplus, instead of the small businesses still struggling to make it through the COVID-19 economic crisis.
California had some of the most expansive leave policies in the country prior to the COVID-19 pandemic, and in response already has enacted more workplace laws and regulations, but small operations needing grants for lifelines shouldn’t be shouldered with additional costs, John Kabateck, California state director with the National Federation of Independent Business (NFIB) told the Northern California Record.
“To claim the mom and pops are not doing the right thing to help their employees is wrong,” Kabateck said. “If indeed our state budget is busting at the seams, they should use money out of those coffers and not the cash registers of the corner baker, auto shop or restauranteur who are doing everything they can to survive in these uncertain times.”
The NFIB is one of more than 100 signatories on a California Chamber of Commerce letter to the governor and legislature that explains the business community’s opposition to AB 84/SB 95.
“[E]mployers cannot continue to subsidize the cost of the COVID-19 pandemic,” the letter states.
California is also scheduled to receive a $150 billion infusion as part of federal COVID-19 relief legislation signed by President Biden on March 11, KQED reported.
The bills also would expose employers to additional legal penalties, critics argue. The Fisher Phillips COVID-19 litigation tracker shows almost half of all lawsuits in California have been filed against businesses with fewer than 100 employees.
“Another new leave mandate exposes these employers to additional costly litigation, even if the employer makes a good faith mistake in trying to administer and apply these overlapping leaves,” the letter states.
The letter details the extensive leave programs offered to California workers.
“We are seeking steps forward not giant leaps backward,” Kabateck said. “It’s time to stop appeasing the small special interests of unions and trial lawyers and provide something for those who employ most Californians – small businesses on Main Street.”