Policy Analysis

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Policy Analysis- Earned Paid Sick Time

School of Social Work, University of Texas at Arlington

SOCW-5303: Social Welfare Policy and Services

May 8, 2020

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Introduction

The recent pandemic, that has made its way around the world infecting over 24,000 people in at

least 25 countries, has highlighted a lot of issues with public policies or lack thereof (Wasserhiet &

Kuppalli, 2020). Among them is the disproportionate impact COVID-19 will have on low-income

communities who are at a higher risk of contracting and spreading the virus (Vesoulis, 2020). These

individuals are more likely to be in low income-jobs that tend to include mostly part-time roles such as

food service, store clerks, and childcare (Vesoulis, 2020). People in these jobs have lower chances of

having fringe benefits like health insurance or paid sick time off (Vesoulis, 2020). In Dallas, only 30% of

full-time employees earning less than $15,000, have paid sick time off, if they’re a part-time employee

that number drops (Institute for Women’s Research, 2018). If these essential workers, their children or

other family members get sick they risk losing wages vital to their survival or they risk possibly exposing

their co-workers and places of businesses to the virus (Vesoulis, 2020).

In April of 2019, the Dallas City council voted 10-4 to pass the Earned Paid Sick Time ordinance

and add Chapter 20 to the Dallas City Code (Norimine, 2020). This code would require employers to

offer paid sick leave for any employee who was regularly scheduled to work within the boundaries of

the City of Dallas, both full and part-time staff. The code went into effect on August 1, 2019 but was

scheduled to be enforced April 1, 2020. Days before its enforcement date and amidst a major health

crisis, a U.S. District judge issued an injunction stating that cities did not have the right to issue such an

ordinance (Norimine, 2020).

Google (n.d.) defines public health as “the health of the population as a whole, especially as the

subject of government regulation and support”. Local and federal governments not only have the ability

but the requirement to pass and enforce laws that support public health. Especially in times of

pandemics but year-round too, the ability for workers to stay home when they are sick is important.

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Policy Overview

Chapter 20 of the Dallas City Code, Earned Paid Sick Time (2019), requires any employer doing

business in Dallas to provide employees paid sick time off. All employees in the city of Dallas who work

at least 80 hours per year must earn a minimum of one hour for every 30 hours of work. The code also

states that employees are allowed to use and get paid for available earned sick leave for the following

reasons: physical or mental illness, injury, preventative medicine, health conditions, family members

illness, injury, health care or health conditions and for anything associated with the victimization from

domestic violence, sexual assault or stalking (Earned Paid Sick Time, 2019).

Employers who are considered medium or large, that is more than fifteen employees, would

have a cap of 64 hours per year, while smaller companies would have a cap of 48 hours, unless the

company chose to offer a higher limit (Earned Paid Sick Time, 2019). Companies that employ more than

five employees would begin counting paid sick leave upon beginning employment or when the

ordinance took effect on August 1, 2019, whichever is later. Companies with less than five employees

had until August 1, 2020 to begin implementation (Earned Paid Sick Time, 2019).

Under Earned Paid Sick Time (2019) employers would be able to request verification for

requests that exceed three days’ time but cannot inquire as to the nature of event or illness. Employers

could require a timely request of usage of earned sick time but cannot deny it in the case of unexpected

circumstances that fall under the previously stated qualified reasons. Under this code employees were

not required to find their own replacement or substitute to cover their sick time. However, employers

could offer incentives for exchanging of hours amongst employees (Earned Paid Sick Time, 2019).

Section 20-7 of this code states that businesses must inform employees of their balances on a

monthly basis in an electronic or written format (Earned Paid Sick Time, 2019). It also states that

company or employee handbooks must have their paid sick leave polices clearly defined and stated.

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Earned Paid Sick Time (2019) also prohibited retaliation against employees for requesting or using their

earned sick time. It also did not prohibit employers from being more generous with their paid sick leave

policies. Companies that did not comply were subject to a civil penalty (Earned Paid Sick Time, 2019).

The Problem

A report by Glynn & Corley (2016) notes that families in the U.S. lose $20.6 billion in wages

because they don’t have access to paid sick leave. This does not include medical costs incurred by

delaying or forgoing treatment which workers with no sick leave are more likely to do (DeRigne et al.,

2016), nor does it account for future losses in wages or savings should they have to take time out of the

work force to provide extended care (Glynn & Corley, 2016). In turn families that must stop working or

reduce hours to obtain or provide medical treatment for themselves or family members end up

depending on public benefits, incurring an additional cost to society (Glynn & Corley, 2016).

The Unites States is the only developed nation that does not have or require paid sick leave for

its workers (Glynn & Corley, 2016). Only eleven states and the District of Columbia have paid sick leave

laws, and Texas is not one of these states (Zenefits, 2019). According to the Institute for Women’s Policy

Research (2018), just over 40% of City of Dallas workers do not have access to paid sick leave and this

number is higher among low-income earners at 70%. When broken down by race; 55% of Hispanics are

less likely to earn paid sick leave, compared to 31% of white workers in the city. (Institute for Women’s

Research, 2018). Lack of paid time off also disproportionately impacts women who are more likely to be

the parent/guardian who takes time off to stay at home with sick children or elderly parents (Ranji et al.,

2020). Of those working mothers who take time off to care for sick children over half of them sacrifice

wages to do so (Ranji et al., 2020).

The Goal

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According to Earned Paid Sick Time (2019), the goal of Chapter 20 was to provide the City of

Dallas employees the opportunity to earn sick leave and to be able to use it when they needed it. To

deprive workers in Dallas of this benefit would be “detrimental to the health, safety, and welfare of the

residents of Dallas” (Earned Sick Time, 2019, §20-1) The ordinance states that earned sick leave is the

responsibility of the city to provide for its residents and it’s workers.

Ultimately, ensuring that workers accrue paid sick leave would provide multiple benefits to

employees and employers alike. Workers with access to paid sick time have a higher likelihood of

participating in preventative care, therefore reducing work absenteeism and occupational injuries

(Institute for Women’s Research, 2018). They would also be more likely to stay home when they’re sick

reducing the risk of infecting fellow employees, something the Center for Dieses Control highly

recommends during flu seasons and currently during the COVID-19 pandemic (DeRigne et al., 2016; CDC,

2019).

Other benefits according to Institute for Women’s Research (2018) include reducing costs of

health care because employees who participate in preventative medicine are also more likely to receive

early detection and timely treatments if necessary. Having the ability to take time off to make doctor’s

visits makes it less likely to receive medical services at emergency departments. It also allows for

parents/guardians to take care of their children and reduce contagious contact at schools (Institute for

Women’s Research, 2018).

Alternatives

The Family Medical Leave Act (FMLA) is the only federal leave mandate available to workers in

the United States (Ranji et al,, 2020). FMLA guarantees job safety and allows for twelve weeks of

‘unpaid’ leave. While FMLA provides the time to care for ill family, for personal health reasons or to care

for a new child, it only applies to 60% of workers in America (Ranji et al., 2020). FMLA also does not

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provide time for preventative medicine or for absences due to short-term health issues nor does it assist

with lost wages. (DeRegine et al., 2016).

Other states have taken it upon themselves to implement paid sick leave policies and laws that

require similar conditions to that of the City of Dallas Paid Sick Time ordinance. According to Zenefits

(2019) states like California, Arizona, Maryland and Connecticut have had healthy families or paid sick

leave acts going back to 2012. Main, recently authorized a new sick leave law that will go into effect on

January 1, 2021 (Zenefits, 2019). This allows for the state of Texas to implement its own paid sick time

off laws. However, recent history around similar blocked ordinances in Austin and San Antonio, and the

most recent injunction in Dallas implies that state representatives are not on board with implementing

such a law, as they argue that it would violate minimum wage laws. (Zenefits, 2019; Norimine, 2020).

This leaves it up to businesses to provide their own sick leave polices. While 59% of Dallas

workers have some access to paid sick leave through organizational policies, it still leaves over 300,000

workers without it (Institute for Women’s Research, 2018). Its particularly low in businesses that that

are service oriented and have the most contact with the public, i.e. childcare, grocery store associates,

food prep and service or as they may be referred to now, essential employees. Dallas workers that work

less than 35 hours a week are also less likely to have access to paid sick time off (Institute for Women’s

Research, 2018).

Implementation

According to the ordinance, presented on April 24, 2019, that requested the addition of Chapter

20 to the Dallas city code, there would be a public education campaign to inform everyone of the new

requirements of the ordinance (City of Dallas, 2019). On the Paid Sick Leave webpage of Dallas City Hall,

there are employer and employee resources, frequently asked questions and the option to receive

presentation and information sessions (City of Dallas, n.d.).

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Should an employee determine that this code had been violated by their employer they would

file a complaint with the director of the Office of Fair Housing and Human Rights (Earned Paid Sick Time,

2019). At that point the director would begin an investigation into the alleged violation. They could then

request that employers voluntarily cooperate or if need be issue subpoenas. If a violation was found to

have occurred then employers would be given the opportunity to voluntarily comply (Earned Paid Sick

Time, 2019). If an employer did not comply then they would be subject to a civil penalty not to exceed

$500 per violation (Earned Paid Sick Time, 2019).

The Texas Public Policy Foundation who represented two Collin county business alongside state

attorney general Ken Paxton, sued the City of Dallas, claiming that Chapter 20 violated employer rights

(Norimine, 2020). On March 30, 2020, U.S. District Judge Sean Jordan granted an injunction on the code.

This has stopped the city from enforcing it and currently supporters of the Chapter 20 are waiting to see

if the Dallas City Council will choose to appeal (Norimine, 2020).

Efficacy

Due to its injunction The Earned Paid Sick Time code is currently not enforceable in the city of

Dallas. A survey done to research the impact of a similar act passed in New York City did note a few

things that should be considered in the decision to pursue further action in Dallas. Appelbaum &

Milkman (2016) surveyed a sample of businesses approximately eighteen months after New York City’s

Earned Sick Time act went into effect. They found that 18% of the business surveyed were never even

aware of the of the law. They also found that over 40% of employers denied sick leave to part-time and

per-diem employees even though the law covered paid sick leave for them as well (Appelbaum &

Milkman, 2016). Implementation in Dallas would require strong oversight to ensure it does not face the

same lack of enforcement.

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On a positive note nearly 85% of businesses responded that there was no impact on their

bottom lines, 14% said the impact was a modest impact and less than 2% said they had a decrease in

total costs (Appelbaum & Milkman, 2016). Respondents also noted that of the employees who did

utilize their paid sick leave, about half of them only used three days in a twelve-month period

(Appelbaum & Milkman, 2016). Applebaum & Milkman (2106) also found that despite the fears

opponents initially expressed, over 90% reported no reduction in hiring, increase in prices, or reduction

in pay and 97% did not find the need to reduce work hours.

Conclusion

The COVID-19 pandemic has given new momentum to the issue of Earned Paid Sick Leave but

the need for working families to have access to paid sick time is not new. Over the last two decades

states, counties and cities have been passing laws that require businesses to give employees earned sick

time off (Corley et al., 2017). In 2015, President Obama signed an executive order that required that

federal contract workers earn paid sick leave (Corley et al., 2017). Across the country voters from both

sides of the political divide are in support for laws and policies enforcing paid sick leave for employees

(Corley et al., 2017).

In order to reduce contagion not just of COVID-19 but of other seasonal viruses, its important

that employees stay home when they’re sick (CDC, 2019). Employees with low-income jobs are less

likely to stay home due to fear of wage loss and then become more likely to spread the disease

(Vesoulis, 2020). According to Svenn-Erik Mamelun, a Norwegian researcher that studied the 1918

Spanish Flu, when poor communities are hit disproportionately the impact on upper-class during the

later waves is deadlier (Vesoulis, 2020). In Dallas over 40% of workers, largely in low-income jobs, don’t

have the option to stay home (Institute for Women’s Research, 2018). Passing and enforcing a paid sick

leave policy would be a positive impact to public health in the long run.

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References

Appelbaum, E., & Milkman, R. (2016, September 6). No big deal: The impact of New York City's paid sick days law on employers.Center for Economic and Policy Research. https://cepr.net/report/no- big-deal-the-impact-of-new-york-city-s-paid-sick-days-law-on-employers/

Centers for Diesease Control and Prevention. (2019, April 9). Stay home when you are sick. https://www.cdc.gov/flu/business/stay-home-when-sick.htm

City of Dallas. (2019, April 24). Council Agenda. https://dallascityhall.com/government/Council%20Meeting%20Documents/Final%20Agenda_A pril%2024,%202019.pdf

City of Dallas. (n.d.). Paid Sick Leave. https://dallascityhall.com/departments/fairhousing/paid-sick- leave/Pages/default.aspx

Corley, D., Forthingham, S., & Bahn, K. (2017, January 5). Paid sick days and paid family and medical leave are not job killers. Center for American Progress. https://www.americanprogress.org/issues/women/reports/2017/01/05/295908/paid-sick-days- and-paid-family-and-medical-leave-are-not-job-killers/

DeRigne, L., Stoddard-Dare, P., & Quinn, L. (2016, March). Workers without paid sick leave less likely to take time off for illness or injury compared to those with paid sick leave. Health Affairs, 35(3), 520-527.

Earned Paid Sick Time. 1 Dallas City Code. §§ 20-1-11. (2019). http://library.amlegal.com/nxt/gateway.dll/Texas/dallas/cityofdallastexascodeofordinances/vol umei/chapter20earnedpaidsicktime?f=templates$fn=default.htm$3.0$vid=amlegal:dallas_tx$an c=JD_Ch.20

Glynn, S. & Corley, D. (2016, September 22). Quantifying the Costs Families Currently Face as a Result of Lacking U.S. Work-Family Policies. Center for American Progress. https://www.americanprogress.org/issues/women/reports/2016/09/22/143877/the-cost-of- inaction/

Google (n.d) Dictionary: Public Health. https://www.google.com/search?sxsrf=ALeKk03o- 2jsj1E4UpcPF0HabZuRnJF3EQ:1587831229750&q=Dictionary&stick=H4sIAAAAAAAAAONQesSoy i3w8sc9YSmZSWtOXmMU4- LzL0jNc8lMLsnMz0ssqrRiUWJKzeNZxMqFEAMA7_QXqzcAAAA&zx=1587832555789#dobs=public %20health

Institute for Women's Policy Research. (2018, May). Access to paid sick time in Dallas, Texas (Briefing Paper # B373). https://iwpr.org/publications/access-paid-sick-time-dallas-texas/

Norimine, H. (2020, March 30). Federal judge stops Dallas from enforcing ordinance that requires paid sick leave. The Dallas Morning News. https://www.dallasnews.com/news/public-

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health/2020/03/31/federal-judge-stops-dallas-from-enforcing-ordinance-requiring-paid-sick- leave/

Ranji, U., Long, M., & Salganicoff, A. (2020, March 30). Coronavirus puts a spotlight on paid leave policies. Kaiser Family Foundation. https://www.kff.org/womens-health-policy/issue- brief/coronavirus-puts-a-spotlight-on-paid-leave-policies/

Vesoulis, A. (2020, March 11). Coronavirus may disproportionately hurt the poor and that's bad for everyone. TIME. https://time.com/5800930/how-coronavirus-will-hurt-the-poor/

Wasserheit, J., & Kuppali, K. (2020, February 5). 2019-nCoV: Spread of coronavirus highlights need for strengthened global health security. Science Speaks:Global ID News. http://sciencespeaksblog.org/2020/02/05/

Zenefits . (2019, August & rev. 2020, March). A list of states and cities with paid sick leave laws. Workfest. https://www.zenefits.com/workest/the-definitive-list-of-states-and-cities-with-paid- sick-leave-laws/