Paid family leave bill would be bad for New Mexico businesses

New parents should get time off after a baby is born. An illness shouldn’t cost someone his or her job. A tragedy in a family should be met with compassion, and work stress shouldn’t be stacked on top of it. But the paid family medical leave bill making its way through the Roundhouse misses the mark, and lawmakers or the governor should take the Welcome Child and Family Wellness Leave Act back to the drawing board.

The bill would levy a tax against all workers except for federal employees and businesses to create a state-administered program to oversee up to 12 weeks of paid time off for an employee for a myriad of reasons, from the birth of a child, care for themselves or a family member, bereavement and several other conditions, including safety. It also ensures that the employee will have their job back when they return.

It sounds good on paper. But there are too many flaws.

New Mexico has a unique economy. Small Business Administration data shows that more than 90% of businesses here are small, meaning 500 or fewer employees, though many are much smaller than that. There are nearly 30,000 businesses with 19 or fewer employees, accounting for more than half of the state’s workers. Certainly those business owners would have a harder time getting their work done if a handful of employees were given the OK by the state to take a prolonged absence than a large corporation. And it remains unclear how the owner could replace the workers while also promising employees on leave their jobs back.

Such absences would undermine some of the businesses the state’s Economic Development Department is trying to grow. New Mexico was at the forefront of the country when it established the Outdoor Recreation Division in 2019. Many of those businesses are not only small, but seasonal, creating an added crunch for an owner trying to stay in the black if a worker is on paid leave during its busy season.

Questions remain about how exactly the paid leave approvals will be approved. What is a reasonable amount of time for an employee to give notice before going on leave? And if there are abuses, who is responsible for repaying the employer?

We also don’t like the politics of it. Last year there were competing family leave bills. A narrower version had gained the support of many business leaders, including local chambers of commerce. But that bill was killed in committee and lawmakers are considering an expanded version.

The political discussion on the bill this year doesn’t inspire confidence. Most of the committee debates have revolved around public comment, not exchanges between lawmakers or expert witnesses. A child care provider spoke in favor the bill, arguing that she only pays her employees around $18 an hour — “barely a living wage” — and they don’t have enough time off. She said an employee had to work with a hernia to make ends meet. Why not just give her a raise and more sick time? Isn’t that a wage issue?

Additionally, questions remain about the bill’s solvency. Lawmakers don’t know how so-called baby rebates — $9,000 for new parents — will be funded, which legislative analysts predict will cost around $193 million per year, and how many people will take advantage of the program.

If the program is created, we suggest that the state roll it out on its own workforce first. Make sure there are no hiccups if managers and directors have to account for unexpected leave in the Transportation, Health, Corrections and Children, Youth and Families departments or New Mexico State Police. Or, the state could put the program in reverse, and incentivize the practice by giving employers tax credits to give paid leave.

We would encourage our leaders to vote no on the Welcome Child and Family Wellness Leave Act. And if they are on the fence when the vote comes up, consider taking a sick day.