
Let's examine the costs.
Proposed requirements:
Seven days of sick pay per year, 8 hours per day = 56 hours sick pay per year
for each employee
Ohio: average wage/salary + required benefits* = $18.38 + $2.22 = $20.60 per hr.
per employee
Company with 25 full-time employees:
$20.60 x 56 hours x 25 workers = $28,840 annual cost
(That's 1,400 hours of productivity lost to the company - every year.)
Company with 100 full-time employees:
$20.60 x 56 hrs. x 100 workers = $115,360 annual cost
(5,600 hours of lost productivity)
Company with 250 full-time employees:
$20.60 x 56 hrs. x 250 workers = $288,400 annual cost
(14,000 hours of lost productivity)
Company with 2,500 full-time employees:
$20.60 x 56 hrs. x 2500 workers = $2,884,000 annual cost
(140,000 hours of lost productivity - every year)
Companies cannot simply pretend their employees are at
work when they are not. The thousands of hours of lost productivity will require
employers to hire more people and pay replacement wages. For any of the above
examples, the costs of sick pay plus replacement wages will actually double the
costs for Ohio companies!
What Ohio business can afford these kinds of losses?
Play-Sick Ohio will drive up costs, drive down wages and benefits, and kill jobs
and economic growth in Ohio. Why would any new business want to locate in Ohio - with a mandatory sick pay program being enforced by state law - especially when
NO surrounding states penalize their businesses with similar mandates?
*U.S. Department of Labor: Employer costs per hour
worked for employee compensation (wage and required benefit components - Soc.
Security, Medicare, Fed/State Unemployment Insurance, Work.Comp.) - average
rates for Ohio region.  |