California workers will see their basic conditions improve starting in January. A new law signed Wednesday by Governor Gavin Newsom will come into effect, which increases paid sick leave by up to five days. Until now, there were only three.
SB 616 also expands the number of sick leaves that workers will be able to take per year. The move comes as California also raised the minimum wage for fast-food workers to the highest level in the country.
For Newsom, this is an advance for the well-being of Californian workers. Employees will no longer have to consider choosing between coming to work sick and continuing to get paid or being able to take a few days off when necessary. According to census data, American companies offer on average between six and 10 days of paid sick leave. Forty-seven percent of Americans took three or fewer sick days in the past 12 months.
Will small businesses be able to pay?
However, according to AP, the California Chamber of Commerce warns about the negative effects it could have on California's economy and business community.
The five days of paid leave could be too significant a cost for small businesses that need their workers every day. California Chamber of Commerce President Jennifer Barrera issued a statement explaining this situation. "[Small businesses] will have to reduce jobs, cut wages or raise consumer prices to meet this mandate," she says.
According to The HD Post, which cites data from the Californian government, the new law will cause $273 billion in lost productivity per year.
While Newsom signed SB 616 along with 20 other measures this Wednesday, on Saturday he vetoed another bill related to work conditions, one that would grant unemployment benefits to striking workers. The Californian governor assured that, if implemented, this bill would create $20 billion in debt for the state.
