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Assemblymember Fiona Ma P.O. Box 942849 Sacramento, CA 94249-0012 SUBJECT: AB 2716: Employment/Sick Leave Mandate - OPPOSE Dear Assemblymember Ma, I OPPOSE AB 2716 (Ma) because it would unreasonably expand employer’s costs and liability for a new protected and paid sick leave for employees. AB 2716 mandates that all employers provide paid sick leave to an employee after seven days of work in a calendar year to care for the employee’s own illness, or to provide care to a sick child, spouse, domestic partner or other relative. The mandate would extend to all employers and all employees, as specified. There are no exceptions. The provisions of this bill will impact all employers, large and small, regardless of the level of sick leave currently provided. Many California employers provide paid sick leave and/or paid vacation time even though current law does not require it. Under current law, unlike vacation days, sick leave does not accrue nor vest. Therefore, any unused sick leave may be forfeited at the end of a designated period of time. AB 2716 proposes to require unused paid sick time to carry over from year to year. Furthermore, the bill requires an employer to keep sick leave on the books for twelve months after termination. Most California employers participate in the California State Disability Insurance (SDI) program, which is paid for through payroll deductions and provides temporary disability benefits for employees who are disabled by a non-work-related illness or injury. The employer is not required by law to offer paid sick leave to employees in addition to mandated SDI benefits. In fact, payment of sick leave may reduce the SDI benefits to which an individual is entitled. Private employers are not exclusively impacted by this proposal. Both because of the administrative burdens and the additional cost to provide sick leave, public employers believe that AB 2716 will severely restrict the use of extra help and seasonal employees. This loss of flexibility will increase costs and reduce efficiencies in the delivery of services to the public by cities and counties. The ever-increasing burden of costly mandates on employers can cumulatively result in lower wages, reducing available health insurance, limiting training programs and - in the worst case scenario- job loss or reduced work hours. Job loss translates to lower tax revenues from employers and employees, as well as increased utilization of Unemployment Insurance. In an already troubled economy California should be seeking ways to stimulate job growth and avoid forcing costly mandates on employers.