Informing policy. Inspiring change. Improving lives.
1200 18th Street NW, Suite 301
Washington, DC 20036
202 785-5100
iwpr@iwpr.org

WSJ Op-ed Misses On Paid Sick Days

By Robert Drago

Since the implementation of a paid sick days mandate in San Francisco, followed by Washington DC, and most recently the state of Connecticut, the popularity of paid sick days laws is growing. This has caused concern in the business community. In the latest salvo, Michael Saltsman discussed Institute for Women’s Policy Research (IWPR) findings regarding San Francisco’s experience with a paid sick days ordinance. The piece includes numerous mischaracterizations of the facts. Interpreting the Bureau of Labor Statistics finding that 80 percent of private sector employee have “some type of leave” as making up for paid sick days (only 62 percent have that), is misleading: vacations are typically scheduled weeks or months in advance; one’s own illness or that of a child usually cannot be scheduled. IWPR’s finding that only 3 percent of employers reported that fewer employees came to work while sick needs to be balanced against the 25 percent of employees who said that they were better able to care for their own or their families’ health needs.  Among all demographic and racial/ethnic groups, black (29 percent), Latino (31 percent), low-wage (30 percent), women (27.5 percent), and workers over 55 (34 percent) were most likely to say they were better able to care for their own or their families’ health needs as a result of the paid sick days law.

The finding that 30 percent of low-wage employees reported adverse hours or layoffs effects also requires context: According to the San Francisco Office of Labor Standards Enforcement, the city also raised the minimum wage and mandated health insurance around the same time as the paid sick days ordinance, and the expense of health insurance (particularly for low-wage employers) far outweighs any conceivable impact from paid sick days. Further, the surveys were administered late in 2009 (for employers) and early in 2010 (for employees), and those were not exactly great times for the U.S. economy.

Finally, the most important piece of context missing is that the median employee in San Francisco with paid sick days reported using three days per year. For someone working 5 days per week for 52 weeks per year, that represents 1.2 percent of annual earnings. That figure is around one-twentieth the size of the  percentage increase in the federal minimum wage during and just after the Great Recession (rising from $5.85 to $7.25) and no serious economist believed that increase in labor costs had any ill effects on the economy. The ostensible “downside” of paid sick days discussed by Mr. Saltsman is in fact a mirage.

 

Dr. Robert Drago is the Director of Research at the Institute for Women’s Policy Research. Prior to joining IWPR, Dr. Drago held positions as Senior Economist with the Joint Economic Committee of the U.S. Congress and Professor at the Pennsylvania State University in the departments of Women’s Studies and Labor Studies.

San Francisco Paid Sick Days Law Is a Proven Success

This is a guest post by Vicki Shabo, Director of Work and Family Programs with the National Partnership for Women and Families. It was originally published on the blog for the National Partnership of Women and Families.

A new study released today shows that San Francisco’s Paid Sick Leave Ordinance (PSLO)—the first citywide paid sick days standard in the country—has been proven a success. The report, San Francisco’s Paid Sick Leave Ordinance: Outcomes for Employers and Employees, released by the Institute for Women’s Policy Research (IWPR), includes the results of a survey of nearly 1,200 workers and more than 700 employers in San Francisco. The findings are overwhelmingly positive for workers, businesses and the public—adding further evidence that policies that help working families meet their responsibilities at work and at home are good for everyone.

Sixty-one percent of San Francisco voters approved the city’s paid sick days law in 2006 despite the business lobby’s fierce campaign against it. Under the law, workers in smaller businesses can earn up to five paid sick days per year while workers in larger businesses can earn up to nine. Workers can use the sick time to recover from their own illness, care for a sick family member, or seek routine medical care.

This new study shows what researchers, advocates and the San Francisco public knew to be true: San Francisco’s PSLO has had a tremendous impact on workers’ lives with little to no impact on the city’s businesses. Two-thirds of the employers surveyed now support the PSLO. They overwhelmingly report that their profits haven’t declined as a result of the law and two-thirds report no difficulties with implementation.

The study results suggest that part of the reason the impact on business has been minimal is that workers only take sick days when they need them. Even though the law allows workers to take between five and nine paid sick days annually, San Francisco workers used a median of just three days per year to recover from an illness or care for a sick family member. And one-quarter of workers reported that they didn’t take a single sick day. Commonly used arguments about employee abuse, just like concerns about hindering businesses, simply aren’t reflected in the real-life data coming out of San Francisco. It’s no wonder that the Golden Gate Restaurant Association, one of the chief opponents of the law prior to its passage, now concedes that there has not been an adverse impact on business closures or employee misuse.

This new data proves that access to paid sick days really does make a difference for working families. More than half of the workers surveyed said they have benefitted from the law. And the law has given workers who need paid sick days the most—including parents and workers with chronic health conditions—the time they need to care for their health and the health of their children. Every day we hear the stories of parents who are forced to choose between their children’s health and the financial well-being of their family; lower-wage workers who have to put off visits to the doctor and sacrifice their health to avoid losing their jobs; and workers with conditions like asthma and diabetes that require ongoing care but who are forced to put their long-term health in danger because they have no sick time. This study shows the power of a simple common-sense policy in improving the lives of these workers and their families.

One sobering note from the study is that not all workers have been able to enjoy the PSLO’s protections. Between one-fifth and one-third of the city’s employers are not complying with the law, either by failing to provide time off or by asking for more documentation than the law requires. The survey results are a call for greater employer education, outreach, and enforcement to maximize compliance and workers’ access to the protections the law provides.

As a whole, this new report adds to the growing evidence that paid sick days policies benefit working families, employers and our communities. Currently, 40 percent of private-sector workers in the United States don’t have access to paid sick days. And millions more cannot use the time they have to care for a sick child or family member. Washington, DC, and Milwaukee, WI, have already followed San Francisco’s lead by passing paid sick days laws, and states like Connecticut are seriously considering legislation that would guarantee workers the right to earn paid sick days. There are no more excuses for lawmakers and employers not to do the right thing for working families. The scare tactics used by opponents have been shown to be baseless. It’s time for lawmakers to reject them and enact the common-sense policies that are proven to work for everyone.

Vicki Shabo is the Director of the Work and Family Programs with the National Partnership for Women and Families based in Washington, DC.

Go to Home Page