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IWPR Publication

Valuing Good Health in Denver: The Costs and Benefits of Paid Sick Days
by Kevin Miller, Ph.D., Claudia Williams (October 2011)

Voters in Denver will consider a referendum on the 2011 ballot regarding the issue of requiring employers to provide paid sick days. Using the parameters of the proposed law and publicly available data, this paper estimates the anticipated costs and some of the anticipated benefits of the law for employers providing new leave, as well as some of the benefits for employees. Employees of businesses with ten or more employees are estimated to use an average of 2.5 days annually out of a maximum of 9 that may be accrued, while employees at smaller businesses are estimated to use an average of 2.1 days annually out of a maximum of 5 accrued. The anticipated cost of the law for employers due to lost productivity and increased wages is equivalent to a 20 cent-per-hour increase in wages for employees receiving new leave. The anticipated savings for employers, notably a reduction in costly employee turnover, are expected to have a wage equivalent of a savings of 22 cents per hour. Annually, businesses in Denver are expected to expend $22.8 million in providing new paid sick days for employees. Providing new paid sick days is expected to yield benefits of $24.2 million annually, for a net savings for Denver employers of $1.4 million annually.

#B298, Briefing Paper, 25 pages
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