Staffing Workers Comp: Should Paid Leave be Mandatory?

Posted on: January 20, 2015 by NSMWorkComp

Staffing Workers Comp: Should Paid Leave be Mandatory?

Last Thursday, January 15th, President Obama signed a presidential memorandum directing agencies to allow federal workers to take six weeks of advanced paid sick leave to care for a new child or ill family members. This is on the forefront of Obama’s call to Congress to expand healthcare benefits by passing the Healthy Families Act. The Healthy Families Act would grant American workers seven days a year of paid sick time, something employers would be required to offer.

A recent study found that more than 40% of workers in the private sector don’t currently receive paid sick leave, something Obama proposes needs to change. Further backing his sentiments, a study from the Journal of Occupational and Environmental Medicine reveals that having sick employees come to work costs American employers about $160 billion a year in lost productivity alone. What’s more, is that when these sick employees come to work, the expose their co-workers, worsening the issue.

The President’s proposed legislation is actually not the first of its kind; just last year California signed a mandatory paid sick leave legislation into law, and Connecticut implemented one as well. Employers in Connecticut, upon review, saw little effect on their overall operational expenses in light of this legislation, which implies that this is not a great burden on American businesses. In fact, 15% of Connecticut employers actually reported seeing increased productivity while 20% saw a reduction in sick workers coming to the office, and 30% saw a notable improvement in employee morale.

Most employers are supportive of this legislation, however that doesn’t mean there aren’t opponents to the idea. For example, staffing agencies need to determine how complying with this new legislation affects them, should it occur. In addition, some employers are concerned that Workers Compensation claims could rise if they fail or are perceived to fail in complying with the legislation.

NSM Insurance Group offers two exclusive Workers’ Compensation programs: Staffing Lines and AllComp Solutions. Our Staffing Lines program is designed for temporary and permanent placement, outplacement and executive recruiting firms. To learn more about our services, please contact us today at (855) 661-0627.

Posted in: Staffing Agency Workers Compensation