Mixed messages sent to D.C. businesses from council regarding taxes, paid leave

“The cost is significant to the employer,” said Ben Ali Jr., owner and operator of Ben’s Chili Bowl. Some employers might look at reducing other benefits like raises, he said.

The benefit would apply to part-time and full-time workers, who will accrue the time and be able to access it after 90 days.

“Safe” leave would also be included, which can be taken for instances of stalking or domestic violence, as well as other situations against an individual or family member.

“I think it strikes the right balance,” said Ward 1 Council member Jim Graham, who ended up opposing the tax measure on grounds that he wanted more direct relief for small businesses.

It would particularly affect hospitals, universities and restaurants, which have many part-time employees, said Barbara Lang, president and chief executive officer of the D.C. Chamber of Commerce.

“It reinforces that the District is not friendly” to businesses, and makes Washington less competitive with Maryland and Virginia, said Lang.

Currently, San Francisco is the only other jurisdiction in the country to mandate paid sick leave.

One staffer said that no one knows the effect of the sick leave legislation, but that Council member Carol Schwartz doesn’t think it is as devastating as some businesses claim.

Geoff Tracy, owner of Chef Geoff’s, estimates the proposal would cut his profit margin by 15 percent, in an industry where the profit margin is around 5 percent; and he is not specifically aided by part of the tax relief.

Tracy, who wants to open more restaurants, is thinking hard about new locations.

“Clarendon is looking better than Capitol Hill.”

Leave requirements

Paid sick leave requirements as proposed by the D.C. Council.

» More than 51 employees:

7 sick days

» 31 to 50 employees:

6 sick days

» 11 to 30 employees:

5 sick days

» 10 or fewer employees:

3 sick days

Source: D.C. Council

wblake@dcexaminer.com