A recently introduced bill that would mandate paid sick days
is
generating concern among HR practitioners about how it would affect companies
that already offer paid time off.
Under the Healthy Families Act, which was authored by Sen.
Edward
Kennedy, D-Massachusetts, and unveiled on the Senate floor March 15,
companies with at least 15 employees would have to provide seven days
of paid
sick leave annually for each person who works 30 or more hours
each week.
A prorated number of days would have to be offered to those
who work
less than 30 hours. Unused days could roll over from year to year. A
similar bill has been introduced in the House by Rep. Rosa DeLauro,
D-Connecticut.
Kennedy promotes the bill as a vehicle for economic fairness,
arguing that almost half of private-sector workers—and an even greater
percentage of low-wage earners—don’t receive paid sick days to care for
themselves or their children.
He also says the measure would improve public health because
so many
workers in the food service industry don’t have access to sick
days.
Most people in the HR community don’t oppose giving workers
time off
if they’re sick. In fact, many companies already offer paid leave as an
incentive to attract talent. But that’s also the reason that the bill
is raising
red flags.
It’s unclear whether paid-time-off days would count toward
the
required seven paid sick days or whether the mandated days would be layered
on top of PTO.
An aide to Kennedy, who is chairman of the Senate Health
Education
and Pensions Committee, says that the bill would not tack extra sick
days on to voluntary leave a company already has in place.
“It wouldn’t add to their total,” says Laura Capps, a Kennedy
spokeswoman. Her boss’ bill “gives a floor of guaranteed sick days. It
[ensures]
that people have at least seven paid sick days.”
But the chief lobbyist for a major HR organization isn’t as
certain
about how the bill will affect PTO days and how it relates to the Family
and Medical Leave Act.
“The equivalency test is vague and it would need to be
fleshed out
further to see how it interacts with voluntary paid leave programs
...
and other federal and state-mandated requirements,” says Michael Aitken,
director of governmental affairs for the Society for Human Resource
Management.
Working out those details was the main concern expressed by
HR
professionals assembled by SHRM on March 14 to lobby Capitol Hill on a range
of legislation, including Kennedy’s bill.
“It’s not a bad thing,” Angela Hamilton, director of HR
services for
Benefit Resources, says of the measure’s theme—providing paid sick
days. “It depends on how it plays out. There are just too many
unknowns.”
There is plenty of initial skepticism. “They need to be more
specific and they need to spell it out,” says Miriam Feibel, HR business partner
at Firmenich, a Princeton, New
Jersey, manufacturer.
In addition to concerns about PTO days, there is disquiet
over the
bill’s definition of a full-time employee as someone who works 30 hours
or more per week.
At the Dollar and Thrifty auto rental chains, the definition
of a
full-timer is someone who works 35 hours a week. The company is
incorporating more part-time employees in part to save money from a
reduction in
benefits.
“We’ve solicited a lot of part-timers,” says Henrietta
Berroteran,
director of field employee relations for Dollar Thrifty Automotive
Group Inc. About 1,500 of the company’s 8,500 employees work part time,
or less
than 35 hours a week.
But if the Kennedy bill becomes law, it may undermine the
savings
generated by a part-time workforce. “It’s eliminated,” Berroteran
says.
As Kennedy’s bill winds its way through the legislative
process, HR
officials, spurred by SHRM, intend to register their concerns with
their states’ lawmakers.
Debbie Jorgens, an organizational development consultant for
Thrivent Financial for Lutherans in Minneapolis,
will outline qualms about the Kennedy
measure’s potential impact on PTO days to
a newly elected Minnesota Democratic
senator.
“I’m counting on Amy Klobuchar,” Jorgens says. “She’s always
impressed me as someone who will listen. It’s one of the reasons I
voted for
her. We’ll find out.”
—Mark Schoeff
Jr.