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The Business
Council of New York State, whose membership includes over 4,000 member firms
as well as hundreds of chambers of commerce and professional trade associations,
has reviewed the above mentioned legislation and opposes its enactment.
This legislation
would amend New York State's Workers' Compensation Law and permit non-disabled
persons on leave to receive disability benefits, mandate up to ten days of
school visit leave for employers of ten or more employees, mandate bereavement
leave for employers of ten or more employees, authorize up to seven full or
partial days of paid disability leave for situations not covered under the
federal family and medical leave act, and eliminate the seven day waiting
period for receiving disability benefits.
The Business
Council opposes this legislation for the following reasons:
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New York
State is one of only six states in the country with a program requiring
partial income replacement benefits for employees out of work due to injuries
or illnesses not related to work. This bill takes the six decade long
compact of providing partial income replacement benefits to workers ill
or injured and unable to work and stands it on its head. Providing benefits
to workers who are able to work but are on a voluntary leave from work
for personal reasons is a disservice to those in real need of the benefits,
is unnecessary, and is an unjustified incursion by the government into
private, voluntary issues of paid time off between an employer and its
employees or its unions.
Providing for broader use of disability benefits beyond their original
intention will increase actual use of the benefit and, as a simple economic
issue, increase costs for everyone's disability insurance. This additional
cost will be recouped from either increasing the cost of the goods or
services provided by the employer to its customers or by reducing the
level of existing or anticipated employee fringe benefits. Unfortunately,
this issue of paying for this mandate is not directly addressed or even
mentioned in either the proposed legislation or its justification.
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Regarding
the mandating of school visit leave, bereavement leave and family emergency
and medical care leave, there is a much simpler way, besides intrusive
government mandates, to deal with the majority of these legitimate time-off
needs. At the federal level, there has been a move toward the allowing
of compensatory time for employees who work overtime and would like the
choice of additional paid time off instead of the current required payment
of overtime. Employees constantly request this option from their employers
but the federal Fair Labor Standards Act does not permit it for private
sector employers. This approach would provide more choices to employees
to satisfy their particular time-off requirements and leave the government
out of an area where they do not belong. Supporters of this bill should
urge the New York State Congressional Delegation to support amending the
FLSA and permitting compensatory time-off.
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This bill
would also eliminate the seven day waiting period for receiving disability
benefits, which has been part of the program for fifty years, and allow
the receipt of benefits beginning with the first day of disability. Aside
from the obvious avalanche of additional administrative record keeping,
this provision would remove a key provision which has recognized that
an occasional absence due to illness or injury does not measure up to
the definition of a disability, the core reason for creation of the program
years ago. It ignores the foundations of the disability program and turns
it into another government entitlement, a simple paid time-off program.
For these reasons,
The Business Council opposes this legislation and respectfully urges the Senate
Labor Committee not to report it.
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