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    Editorials
    Wednesday, May 01, 2024

    R.I. sick leave bill unhealthy for business

    The following editorial appeared in the Providence Journal.

    Those who want to see a vibrant economy return to Rhode Island have been troubled by a new threat, in the form of a costly proposed mandate for paid sick leave. Advocates pushing harsh measures at the General Assembly have little understanding of what it takes to turn a profit in a state where red tape already chokes off jobs and opportunity.

    In the waning days of the legislative session, the Senate Labor Committee suddenly scheduled a vote on a bill that would have imposed heavy costs on job creators and make Rhode Island even less competitive. As John Simmons, chairman of the Rhode Island Business Coalition, warned on these pages, the measure would have saddled businesses of all sizes in the state with “the most onerous mandated paid sick leave policy for employers in the country.”

    Under pressure, the Senate committee backed off that very extreme measure, and approved something of a compromise. But the revised legislation fails to address many concerns of the business community. Its definitions are hazy. It would not exempt companies that already offer paid leave. It would impose costly and complex new reporting requirements.

    Adding onerous new regulations on businesses is not something that Rhode Island needs now, as it struggles to get back on its feet after more than a decade of economic malaise. If such mandates force more small businesses to close their doors, they could end up hurting the very people the bill was purportedly supposed to help — by putting them out of a job.

    Clearly, the grown-ups in state government, possibly in the House, should study this matter more carefully and talk to people who actually run businesses. Jobs are crucial to the state.

    There may be a case to be made for imposing mandates on larger businesses that fail to provide the benefit of any paid sick leave for employees. But they constitute only a small percentage of the state’s larger businesses. Inflicting a costly new regulatory burden on every business - including ones that already generously offer a variety of benefits that employees prefer - makes no sense.

    Any compromise should focus on encouraging paid sick leave without damaging all businesses, large and small.

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