The paid family medical leave benefit is intended to create a super-fund paid for by new taxes on employees and employers to allow eligible employees a medical benefit of 12 weeks of paid time off annually. This fund would be four times the size of the unemployment fund, or $460 million annually. Employees, our working families, would pay $5 for every $1,000 of pay, and employers would pay $4 for every $1,000 of payroll.
With inflation increasing prices, New Mexicans must keep every dollar they make. Raising this new tax, at this time, on the backs of our employees shows the lack of understanding that our elected officials have for the few working people in New Mexico. Just because the state has seemingly unlimited funds doesn’t mean our workers or businesses do. Now is not the time.
This fund is in addition to the Healthy Workplaces Act, which gives all working New Mexicans eight days of sick leave paid for by their employer. Businesses are still struggling to implement that act. Let them have time to properly execute it before starting yet another program that burdens small businesses.
No one is arguing the difficulty of taking time off for a medical illness or the birth of a child. Businesses do their best to accommodate good employees. Now is not the time for another burdensome tax.
We urge lawmakers to read the fiscal impact report, a nonpartisan report prepared by the state to help guide lawmakers to make responsible decisions. The report on Senate Bill 11 states, “The number of claims assumed in the model could be drastically underestimated.” Washington state drastically underestimated demands on its fund, leading to recommendations for an increase in the premiums on workers’ wages. The same could happen to New Mexico.
Here are some more excerpts from the fiscal impact report for SB 11:
“Increasing taxes on businesses will likely make New Mexico less competitive compared with neighboring states.”
“The reporting and administrative requirements outlined in this bill may present excess burdens on business owners, especially smaller businesses and those without a full human resources department or staff.”
“Businesses must hold a position for employees taking PFML. … This requirement could [force businesses] to stretch their remaining employees’ duties to cover the absent co-worker, or the business may hire someone new to cover their duties and be forced to release the new worker or be overstaffed on return of the worker on PFML.”
Supporting families is the right thing to do. But the devil is in the details, and the details have not yet been worked out. Ultimately, this is a $460 million tax on New Mexicans. The fiscal impact report and the business community are warning legislators that this bill is not ready for passage. Businesses are just not prepared for another financial and administrative burden mandated by the state, and neither are our employees.
Carol Wight is CEO of the New Mexico Restaurant Association.
