Paid Leave Policies Can Bolster Small Businesses

Paid leave has been a hot topic lately, with several new initiatives and laws in the works around the country to allow workers to earn paid sick days or implement family medical leave insurance pools. Here in Maryland, Montgomery County recently approved a law allowing employees to accrue a limited number of paid sick days. Many critics argue that paid leave laws are bad for small businesses, but the reality is that small business owners have a more nuanced and pragmatic view of these policies, and many support them.

Small Business Majority has held multiple roundtables in Maryland and D.C. to have candid conversations with small business owners on paid leave. We’ve found that many small employers are in favor of paid leave because they believe it helps them retain employees and benefits their bottom lines. Additionally, Small Business Majority’s scientific opinion polling found half of small business owners nationwide would support a paid sick leave law, and the majority already provide paid vacation to their employees.

While these findings may go against the narrative pushed by special interest groups, which holds that small employers are universally opposed to paid leave policies, they’re not surprising if we look at the facts. For one, paid leave boosts employee morale, which reduces turnover and increases employee productivity. This helps small businesses recruit and retain top employees and cuts down on expensive overhead costs that stem from hiring and training new workers. Additionally, small business owners know that sick employees can’t do their best work. Paid leave helps sick employees recover quickly from illnesses and prevents them from passing contagions around the workplace.

The bottom line is that paid leave policies can be good for small businesses. Small business owners want pragmatic policies that take into account their diverse experiences. As policymakers weigh paid leave legislation, it’s important they listen to real small business owners on this issue.