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ATX Council passes Sick Leave mandate, Biz leaders fear what comes next
(Photo:Shutterstock/ Brandon Seidel)
The Austin Independent Business Association is disappointed with City Council's 9-2 vote for a Paid Sick Leave mandate. They agree with Austin Chamber of Commerce's estimate that it will cost restaurants $150,000 annually to comply. The Association's Rebecca Melancon said this is just transferring pain from one part of the community to another. "I think Austin lost...This could have been used to build the community to solve a problem..and it was used to be divisive."
Many of Austin's companies will simply adjust and move along. But, Melancon continued, this will force small business owners and managers to make cuts where they can to keep afloat and stay within regulation. She warned that could mean cutting back on other benefits, bonuses for employees and services for customers.
National economists reported, in city's where this has been law, workers take an average of 2.7 days of sick leave. So Austin business owners should budget for at least 3 days of paid sick leave per employee.
Most businesses have until October 1st to get it figured out. Micro businesses with 5 or less, will have until 2020 to get themselves squared away.