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LEGISLATIVE ACTION CALL MANDATED PAID LEAVE

ISSUE OVERVIEW: SB 1661 (Kuehl)
This onerous legislation would directly affect the lives of more than 12 million California workers and the bottom line of every California small business! Under this bill, California would become the first state to grant most workers up to 12 weeks paid time off to deal with common family situations. The major problems USB has with this bill are:

  1. There is no minimum time that a worker has to work for your firm before benefiting from the paid time off. In other words, a worker could be on the job for as little as one day and apply for the paid leave.
  2. There are no limits on the number of employees from one company that may apply for a paid leave at the same time, potentially leaving a small business in dire straits.
  3. There is much precedent for this type of legislation which has passed to incrementally increase required employer contributions with little public scrutiny.
  4. This piece of legislation applies to all businesses, REGARDLESS OF SIZE.
  5. This legislation would entitle employees to 55% of their salary, with a current limit of $728 per week, or $8,736.

UNITED SMALL BUSINESS OF CALIFORNIA'S POSITION USB is vehemently opposed to this legislation, and to any piece of legislation like it. It opens up a "Pandora's Box" and would prove to be the largest job-killing bill of all-time in this state's history. It would also establish two new taxes to pay for this paid leave benefit--a proposed increase in the state disability insurance tax formula plus a new 14% "regulatory fee" to be levied on employer SDI plans. Our chairman, Mal Lunn, spent 30 years with the U.S. Chamber of Commerce, and worked closely on federal law and legislation. He believes that SB 1661 is impermissible under federal law (ERISA) which forbids states from establishing mandated employee welfare benefits such as those contained in this legislation. STATUS Believe it or not, this bill has already passed the Senate and must be stopped in the Assembly or, as a last resort, vetoed by Governor Davis. WHAT USB WANTS YOU TO DO Contact your Assembly member and Governor Davis. Please copy us on all correspondence. 17221 Roscoe Blvd. Suite 17 Northridge, CA 91325 phone 877-791-7705 fax 630-475-3844 Email:Memo@unitedsmallbusiness.com

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