When California enacted a 2004 law requiring employers to grant paid leave for employees to bond with a new child or care for a sick family member, critics predicted it would cost jobs and harm small businesses. A new study says that didn’t happen.
When researchers from UCLA and the Center for Economic and Policy Research asked 253 employers if the law had any effect on staffing levels, hiring practices or business costs, 87% said it hadn’t. In fact, overwhelming majorities said the law had either a positive effect or no noticeable effect on productivity (89%), profitability (91%), turnover (96%) and employee morale (99%).
The California Paidprovides eligible employees up to six weeks of wage replacement leave at 55% of their usual weekly earnings, up to a maximum of $987 per week in 2011.