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Healthy Families Act  

A piece of legislation called the Healthy Families Act (H.R. 2460) is making its way through Congress since its introduction in May.  This bill would mandate employers with more than 15 employees to provide up to 7 paid sick days for their employees (1 hour for every 30 hours worked -- an instant 3.4% productivity hit). 

A member alerted us to this bill through an Ask A CEO question.  In that question, he said:   

"Our labor law attorney believes the chances of this passing is high due to our democratically-controlled congress and to combat this he has advised us to immediately offer a system of 3 days of paid time off per year. He claims by having this existing system we will be able to avoid having to go to a system later of 7 paid days off. I have researched the Internet and cannot find much on this to validate that my attorney’s advice is sound. Due to the fact going to 3 paid days off might cost us an additional $30,000 or so, I am very cautious about enacting this without more information."

Several members responded that their own labor attorneys had advised otherwise -- that such a move might even expose the company to providing the 7 mandated sick leave days in addition to those currently provided by company policy.  

Given the legislative climate for increasing worker benefits at the expense of employers, there is almost zero probability of this measure not passing, and President Obama will likely sign it so fast the suction will draw other productivity-killing legislation into its wake.  

The general consensus among members and their legal advisors is that you may as well dust off your employee manual and begin working on your paid leave policies to provide 1 hour of paid sick leave for every 30 hours worked.  Of course, there's always some lag time between enacting legislation and its effective date, so it's something to get onto the HR task list, allowing some lead time to develop as effective a means of compliance as possible.    

 

Thanks,

Terry Weaver
CEO
Chief Executive Boards International
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