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Understanding Mandatory Paid Sick Leave

Heritage Foundation Reports (01/12/2012) Sherk, James

The Healthy Families Act and similar legislation before Congress would require employers to provide employees with at least seven days of paid sick leave benefits. James Sherk, senior policy analyst in labor economics in the Center for Data Analysis at the Heritage Foundation, says the HFA would not increase workers’ total compensation because companies respond to mandated benefits by reducing cash wages. Less take-home pay means less savings and less consumption in the economy, which costs jobs, Sherk adds.