OPINION: Small businesses afraid to dish out criticism of paid leave bill

The debate over the Paid Family and Medical Leave Act (PFMLA) is missing a crucial voice: small business owners. But their silence isn’t a sign of support, it’s a sign of fear.

New Mexico has never been a corporate powerhouse. With only a handful of large companies, like Intel, our economy runs on small businesses. In fact, 90% of businesses in New Mexico have fewer than 20 employees. We are a state built on “mom-and-pop” shops, family-run restaurants, and independent contractors, all working to stay afloat in an increasingly difficult economic climate.

We all know small businesses operate on razor-thin margins, and PFMLA would add another financial burden they simply cannot afford. The bill effectively imposes a new payroll tax — the largest tax increase in state history — on both employees and employers. For many businesses already struggling to cover costs, this could be the final blow.

Many trade associations are speaking out on behalf of small businesses across the state, but the business owners themselves are staying out of the fray. So why aren’t these business owners speaking out? It’s not because they don’t have concerns: It’s because they are afraid of retaliation.

This fear isn’t theoretical. It wasn’t long ago that businesses that pushed back against the governor’s COVID-19 restrictions found themselves targeted. Some were hit with crippling fines, others faced visits from state enforcement agencies, and some were forced to shut their doors for good. That lesson wasn’t lost on New Mexico’s business community.

Now, with House Bill 11, the Paid Family Medical Leave Act, threatening their bottom lines, many business owners know that voicing opposition could bring unwanted consequences, including tougher regulatory scrutiny, lost state contracts, or even public rebuke from elected officials. The political climate in New Mexico punishes those who dare to challenge the status quo.

And so, when small businesses remain silent, it’s not because they support this bill: It’s because they have been conditioned to stay quiet. Can we blame them?

Business owners aren’t opposing PFMLA out of greed. They have risked their life savings to start their businesses, they treat their employees like family, and they want to offer competitive benefits. But they also know that when government oversteps, it can push small businesses past the point of survival.

We can protect workers without crushing the very businesses that employ them. But that conversation will never happen if dissent is met with political retribution.

New Mexico cannot afford policies that stifle businesses into silence or pushes them out of the state. If we truly care about protecting workers, we must also protect the businesses that provide their jobs.

Legislators must demand fair debate, free from intimidation, before passing what could be the most damaging tax increase in our state’s history.

Mark Duncan, R-Kirtland, represents District 2 in the New Mexico House of Representatives.