Shared from the 6/23/2017 The Providence Journal eEdition

EDITORIAL THE PROVIDENCE JOURNAL EDITORIAL BOARD

A compromise, not a crushing mandate

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GROWING R.I.’S ECONOMY

Those who want to see a vibrant economy return to Rhode Island have been troubled by a new threat, in the form of a costly proposed mandate for paid sick leave. Advocates pushing harsh measures at the General Assembly have little understanding of what it takes to turn a profit in a state where red tape already chokes off jobs and opportunity.

In the waning days of the legislative session, the Senate Labor Committee suddenly scheduled a vote Wednesday on a bill that would have imposed heavy costs on job creators and make Rhode Island even less competitive. As John Simmons, chairman of the Rhode Island Business Coalition, warned on these pages, the measure would have saddled businesses of all sizes in the state with “the most onerous mandated paid sick leave policy for employers in the country.”

Under pressure, the Senate committee backed off that very extreme measure, and approved something of a compromise. But the revised legislation also fails to address many concerns of the business community. Its definitions are hazy. It would not exempt companies that already offer paid leave. It would impose costly and complex new reporting requirements.

Adding onerous new regulations on businesses is not something that Rhode Island needs now, as it struggles to get back on its feet after more than a decade of economic malaise. If such mandates force more small businesses to close their doors, they could end up hurting the very people the bill was purportedly supposed to help — by putting them out of a job.

Clearly, the grownups in state government, possibly in the House, should study this matter more carefully and talk to people who actually run businesses. Jobs are crucial to the state.

There may be a case to be made for imposing mandates on larger businesses that fail to provide the benefit of any paid sick leave for employees. But they constitute only a small percentage of the state’s larger businesses. Inflicting a costly new regulatory and paperwork burden on every business — including ones that already generously offer a variety of benefits that employees prefer — makes no sense. Businesses might have to respond by taking away other benefits.

In short, this is not something that should be mindlessly rammed through in the waning days of the session.

A grasp of economics has not traditionally been the strong suit of Rhode Island legislators. That is why the state consistently turns up in surveys as having one of the worst business climates in the country. Despite Rhode Island’s many fine qualities, its high taxes, burdensome regulations, crumbling infrastructure, poor public schools, and corrosive special interests make for a business climate so arduous that many entrepreneurs steer clear. That makes it harder for citizens to get jobs, which produce the tax revenues needed to provide public services.

This is not the time to foist a Draconian sick leave mandate on Rhode Island businesses. Leaders should talk to the people who actually must meet payroll and turn a profit. Any compromise should focus on encouraging paid sick leave without damaging all businesses, large and small.

Readers who are concerned may contact the office of House Speaker Nicholas Mattiello, at (401) 222-2466 or repmattiello@rilegislature.gov , and Senate President Dominick Ruggerio, at (401) 222-6655 or sen-ruggerio@rilegislature.gov.

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