COVID-19 supplemental sick pay is an unnecessary program because some 15 to 17 different employee leave packages are already available to workers, according to the National Federation of Independent Business (NFIB) state director.
Gov. Gavin Newsom signed legislation last week that extends COVID-related paid time off through the beginning of fall 2022, according to media reports.
“It seems absurd that policy makers want to heap yet another massive cost and reporting requirement on already saddled main street employers,” said John Kabateck, NFIB state director for California. “We already have plenty that are available from bereavement leave to state and federal family leave and much more for use by employers and employees alike.”
Under Senate Bill 114, employees will continue to have access to up to 80 hours of COVID-19 supplemental paid sick leave through Sept. 30, 2022. It can be used by workers who are under quarantine, caring for COVID-infected family members, or for COVID-19 vaccination.
“This could conceivably cost small employers hundreds, if not thousands of dollars per month, in mandated leave and open the door to liability if they don't do so,” Kabateck told the Southern California Record. “It’s ridiculous. This state offers more generous employee leave programs than any other in the nation. Why on earth are we doing this?”
Small businesses employing 25 or fewer workers are exempt from the mandate and Gov. Newsom also signed SB 113 into law, which provides $6.1 billion in tax credits, $5.5 billion in restored tax deductions and tax credits to spur innovation and grants as well as some $500 million in tax cuts for restaurants and shuttered venues.
“There are some other components to what the governor's administration has proposed here in regards to tax credits, grants and some other dollars but COVID-19 supplemental sick pay is not a good thing,” Kabateck said.
What NFIB would have preferred is tax credits to offset the burden of the COVID sick pay, Kabateck added.
“We have communicated to the governor, the governor's team and legislators that an employee leave program that includes some sort of economic offset for already strapped employers would be a game changer for us,” he said.