| For Immediate Release |
Contact: Justin Winslow
|
March 13, 2013
|
(517) 482-5244 |
MICHIGAN RESTAURANT ASSOCIATION COMMENDS HOUSE COMMITTEE FOR PASSING PREEMPTION LEGISLATION
LANSING, MI – The House Commerce Committee today passed House Bill 4249 introduced by Rep. Earl Poleski (R – Jackson) to preempt local units of government from creating their own mandatory paid leave policies of private employers within their borders.
“As we begin to understand how devastating local government mandates on paid leave have been in other areas of the country and as new campaigns continue to pop up, the Michigan Restaurant Association (MRA) appreciates the Legislature for having the foresight to take action against these job killing initiatives,” said Justin Winslow, vice president of government affairs for the MRA.
There are currently three cities across the United States with local ordinances mandating paid leave of private employers within their borders. San Francisco was the first to pass its own local ordinance in 2006. It requires all employers regardless of size to offer up to 72 hours of paid leave to each of their employees, whether they are full-time, part-time or temporary in nature. Since its passage, the restaurant workforce in the city has diminished by 8 percent, and overall nearly 30 percent of the lowest paid employees reported layoffs or a reduction in hours.
Seattle enacted a similar policy that went into effect in September 2012. In just a few short months it became obvious to elected officials of both parties that businesses within the city’s borders were at an economic disadvantage to their peers, leading the Democratic Majority Leader of the Senate to pursue statewide legislation to preempt local paid leave mandates in Washington.
Similar attempts were defeated in Denver and Philadelphia when mayors Michael Hancock and Michael Nutter sided with the business community to, as Mayor Nutter put it, “prevent considerable administrative burdens on small businesses that do not have sophisticated time-keeping systems in place.”
“The patchwork quilt of regulation created by local mandates on paid leave would be an administrative nightmare to small businesses like restaurants, where 3 out of every 4 establishments employ fewer than 20 people,” Winslow added. “Local mandates like this may be well-intentioned, but the reality will be fewer jobs, increased costs and an uneven playing field.”
HB 4249 now moves to the House floor where it awaits a vote from the full chamber.
The Michigan Restaurant Association (MRA) is the recognized leader of Michigan's hospitality industry, providing essential services to the foodservice community. Founded in 1921, the MRA represents nearly 4,500 Michigan foodservice establishments. The industry plays an integral role in Michigan's economy, employing more than 390,000 people and creating more than $13.1 billion in annual sales.
###
