Lukas & Greszler: Democrats' $3T coronavirus relief bill would hurt employers and employees

[The Nut Party]

https://www.foxnews.com/opinion/lukas-greszler-democrats-3t-coronavirus-
relief-bill-would-hurt-employers-and-employees

The $3 trillion coronavirus relief bill backed by House Democrats was
headed for a vote in that chamber Friday, although Republican opposition
in the Senate was expected to prevent the bill from ever becoming law.

House Speaker Nancy Pelosi, D-Calif., said Thursday that the legislation
could become the basis of negotiations with the Republican-controlled
Senate and the White House for compromise legislation.

The White House issued an official veto threat Thursday for the Democratic
bill, which would be the biggest relief package in history.

PELOSI CALLS $3T CORONAVIRUS RELIEF BILL DEMOCRATS' STARTING OFFER AS
WHITE HOUSE ISSUES VETO THREAT

Among its flaws, the Democratic bill – called the HEROES (Health and
Economic Recovery Omnibus Emergency Solutions) Act – threatens to
undermine the increased workplace flexibility and accommodations that
workers and employers alike need to deal with the coronavirus pandemic.

The Democratic bill includes a full-year extension of what was supposed to
be a temporary mandate on small businesses to provide up to 12 weeks of
paid sick and family leave to all workers.

Proponents of the legislation present this as another gift to workers –
but it’s not. The mandate would make it harder for employers to stay
afloat amid changing circumstances and meet their employees’ unique needs.
Workers could expect more job losses, and those out of work would have a
harder time finding jobs.

Under the proposal, the paid leave mandate that took effect April 1 would
not sunset until the end of 2021. Throughout this year and next, employers
would be required to provide both full- and part-time employees with up to
12 weeks of emergency paid sick and family leave.

Although employers can fill out paperwork and send in documentation to
receive a credit for some or all of the paid leave they provide, it’s
neither a straightforward nor simple process. Rather, Congress dictates
the terms and conditions, which often overlap and interfere with
employers’ own policies and other provisions Congress has enacted.

For example, Congress dictates that workers qualify to receive the
benefits their first day on the job and says the benefits must be given on
top of any preexisting sick leave benefits, which cannot be changed by
employers.

But COVID-19 has forced businesses and households alike to readjust their
finances, and some businesses need to temporarily adjust their employees’
benefits packages.

The mandate also dictates that employers allow the leave to be taken
intermittently or as a reduced work schedule. Moreover, employers cannot
ask for documentation of an employee’s need for leave until seven days
after the employee has returned from work.

Employers also cannot discipline, discharge or otherwise discriminate
against any worker who takes paid sick or family leave, and they must
restore workers who take leave to the same or equivalent position after
their leave.

These mandates derail the organic process of businesses finding ways to
meet their unique situations and needs. Instead of using their existing
paid leave policies and focusing on adjusting to remote work options and
keeping their businesses alive, employers are having to figure out how to
comply with the new mandate.

Rather than help workers stay employed, this extended mandate could
exacerbate unemployment.

Nearly a quarter of all U.S. workers have already filed for unemployment
in just the last nine weeks. For nearly 37 million newly unemployed
Americans, government-mandated paid leave benefits are meaningless; their
priority is finding a job and getting their careers back on track.

That will become much less likely if Congress moves to make it even more
expensive and more complicated for businesses to rehire. And regrettably,
it could put women – who are more likely to be primary caregivers – at a
disadvantage in the job market.

This paid leave mandate simply isn’t necessary. Federal law already
requires employers with more than 50 employees to provide up to 12 weeks
of unpaid family and medical leave.

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Most employers want to do right by their employees and that’s why the
overwhelming majority of full-time workers already have paid leave
benefits. But employers don’t need to be altruistic to realize that it’s
in their best interests to allow and even encourage sick workers to stay
home. That’s never been truer than during the COVID-19 pandemic.

Rather than meddle in the employee-employer relationship with a sweeping
mandate that burdens small businesses, encourages layoffs, and curtails
workplace flexibility, policymakers ought to focus on the real
vulnerabilities that people face. That is, the risk that unreasonably
prolonged, forced shutdowns will cause thousands of businesses to shutter
their doors for good and that potentially millions of jobs will be lost
and could take years to recover.

Congress should make it easier for workers to prepare for time off by
expanding opportunities to save pre-tax income, allowing workers to opt
for comp time rather than additional overtime pay (a policy change
including in the Working Families Flexibility Act) and reducing costly
mandates, taxes, and regulations that prevent employers from having the
resources necessary to provide paid leave.

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And Congress can help workers accommodate to evolving work situations –
including remote work and more flexible schedules to adjust to children
being home – by easing restrictions on home-based businesses and
clarifying the definition of an employee so that workers have more options
to earn a living and be their own bosses, if that’s what they want.

Americans want the opportunity to work and provide for themselves and
their families. They know that employers face real challenges staying
afloat and keeping workers paid. Congress shouldn’t make it harder for
them to do so.

Rachel Greszler is a research fellow in economics at The Heritage
Foundation.