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This issue brief contains a correction. Much of the resistance to implementing a national paid family and medical leave program stems from the fear that it would negatively affect businesses, particularly small businesses. Yet research from states that have already passed paid leave laws and evidence from small-business owners in these states shows that these fears are overblown. Paid leave has not harmed businesses; in fact, there is evidence of positive effects on recruitment, retention, productivity, and overall performance and profitability. Small businesses could best share in the benefits of paid leave programs through a national, government-administered paid family leave program. Such a program should be available to all workers, comprehensive and specific in addressing serious family and medical needs, affordable and cost effective, inclusive of diverse families, and available without adverse employment consequences. In states without paid leave, small-business owners often express a desire to provide the benefit to employees but are unable to do so on their own. A national social insurance program would level the field for smaller companies that might not be able to offer the same benefits and, therefore, attract the same talent as their larger counterparts. Existing state paid leave programs show that business fears did not materialize There are currently three states with active paid leave programs: California, New Jersey, and Rhode Island. Washington state and New York have passed paid leave laws, but they are not yet in effect.
For the original version including any supplementary images or video, visit https://www.americanprogress.org/issues/women/reports/2016/10/19/146465/paid-leave-is-good-for-small-business/