City, small businesses debate paid sick leave

The city lacks consensus on proposed paid sick leave legislation.

By David Xia

Published November 19, 2009

A proposed bill requiring paid sick leave for city workers drew lively debate at City Hall on Tuesday, but many Upper West Side businesses and employees have remained silent so far.

New York City Council introduced this legislation in August by Councilwoman Gale Brewer of the Upper West Side along with 37 other members, as swine flu anxiety was rising and many New Yorkers hoped to check its spread by encouraging workers to remain at home when they or their children are sick. The proposed bill would grant workers at large businesses the ability to take nine paid sick days a year, and employees of small businesses—with fewer than ten staff members—five paid sick days. Workers would acquire one hour of sick leave for every 30 hours worked after 90 days of employment.

At Tuesday’s hearing, the City Council Committee on Civil Service and Labor solicited input on the bill, which will then be edited before advancing to a full council vote expected to take place next year.

Manhattan Borough President Scott Stringer called the bill a “human issue” that provides a “safety net” for low-income workers, and others argued that the bill would increase labor productivity.

But opponents expressed fear of the serious economic impact it could potentially have on small businesses currently struggling to stay afloat. While struggling in a tight credit market and against sales tax hikes, a small business spending extra money on wages in the absence of an employee could be the straw that breaks the camel’s back, noted Brooklyn Chamber of Commerce President Carl Hum. All five boroughs’ chambers of commerce criticized the legislation for potentially harming small businesses during a recession.

Hum also finds the proposed bill too intrusive and broad. “Our members are opposed to the government depriving us of our ability to determine appropriate benefits for our employees,” Hum said, arguing that the legislation “fails to recognize the diversity of city businesses” in terms of how workers are paid, the ratio of full-time to part time staff, and how workers arrange to have others cover their shifts.

Robert Bookman, legal counsel for the city’s chapter of the New York State Restaurant Association, also urged the City Council to rethink the bill. “You cannot claim to be for small businesses and pass this bill,” Bookman said. “The two are incompatible. Period.”

But the local response is more reserved, as many await the final language of the legislation.

Community Board 7 Health and Human Services Committee co-chair Madge Rosenberg said that she has not “heard anything negative from businesses,” about the bill and added, “I think it’s a very smart and worthwhile plan.” Rosenberg is a small business owner and voted for a CB7 resolution on November 4th that supported the provision of paid sick leave by of vote of 28 to 1, with four abstentions. Still, Rosenberg expressed concern about how this would be implemented and said she is waiting on the final draft of the legislation.

Peter Arndtsen, executive director of the Columbus-Amsterdam Business Improvement District, said he has reservations. “I absolutely agree with the intent, but I am concerned about the impact on small businesses,” he explained, adding that he was unsure of how small businesses would be required to track the accrual of paid sick leave. The problem, he explained, is that many businesses lack the staff and resources for the necessary recordkeeping.

“I have sent out information to small businesses in our neighborhood,” Arndtsen said, though he added, “I don’t think any of them have responded.”

Upper West Side BIDs have not joined the Manhattan Chamber of Commerce to oppose the bill as of Nov. 17.

“I think it’s certainly fair, absolutely, from my liberal, democratic point of view,” Susan Zappone, the manager of Card-o-Mat on 112th Street, said—adding that she previously owned a small business for 27 years where granting sick days was important to her.

Chris Doeblin, the owner of Book Culture, an independent bookseller on 112th Street, said the bill would help level the playing field, since he currently offers first year employees six paid sick days and eight for those working longer. He said, it could be “a better way to do business.”

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