Workers to receive up to seven paid sick days annually under executive order
In a move widely seen as a nod to anti-business, pro-labor groups ahead of the 2016 elections, President Obama on Labor Day spoke before the Greater Boston Labor Council to unveil an executive order that mandates all federal contractors receive up to a week of paid sick leave annually. The Los Angeles Times said the President’s move “comes as Congress resists legislation to change labor conditions and pay to cover all private-sector workers.” In announcing the order, the President said, “Right now, about 40% of private-sector workers – 44 million people in America – don’t have access to paid sick leave. … Unfortunately, only Congress has the power to give this security to all Americans…but where I can act, I will.” Labor Secretary Tom Perez, arguing for the order, on Sunday said, “Other countries have done it, and they see the benefit.” However, Obama officials haven’t provided any sort of estimate on how much the new benefit may cost businesses.
What Happens Next
Despite issuing an executive order to expedite the process, President Obama’s move will not provide contractors with paid leave overnight. The Los Angeles Times noted the changes will take effect Jan. 1, 2017, and will only apply to those workers who currently don’t have jobs providing paid sick leave. As many as 300,000 workers may be affected by the measure.
What This Means For Small Businesses
Though President Obama and administration officials are touting the new paid sick leave order, this is yet another example of burdensome regulatory oversight that will harm small businesses. As NFIB media director Jack Mozloom cautioned in the New York Times, “No business in America would require its suppliers and contractors to increase costs that will naturally boomerang back in the form of higher prices.” He warned that although “mandatory paid leave is a great benefit for workers whose employers offer it,” for those “workers whose employers can’t absorb the cost, it’s an arbitrary expense that will ultimately result in shorter hours, lower pay or disappearing jobs.”
Additional Reading
The Wall Street Journal, the Washington Post, The Hill, NPR, the New Orleans Times-Picayune, Bloomberg Politics, the AP, Fox News, TIME, the Boston Globe, the Christian Science Monitor, Reuters, and Yahoo! News were among the numerous outlets covering President Obama’s announcement.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.
