Business Divide on SB 63, More Mandated Employee Leave

Joel Fox
Editor and Co-Publisher of Fox and Hounds Daily

When the Assembly passed Sen. Hannah Beth Jackson’s SB 63 expanding California’s family leave program and guarantee job protection the Small Business Majority hailed the move in a press release claiming, “we know small business owners support these type of measures.”

Apparently, not all small businesses agree. The National Federation of Independent Business/California said the additional 12 weeks of protected leave deeply concern the businesses NFIB represents. In addition, NFIB worried that the bill creates another right to sue employers. “New costs and more lawsuits against small businesses mean fewer benefits, hours and jobs.”

The California Chamber of Commerce included SB 63 on its job killer list. Potential litigation issues arising from the bill is also a concern for the Chamber. As described on the Job Killer website, SB 63, “Unduly burdens and increases costs of small employers with as few as 20 employees by requiring 12 weeks of protected employee leave for child bonding and exposes them to the threat of costly litigation.”

There was no mention of the possible litigation costs in the Small Business Majority release.

The measure moves on to the Senate.

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