DMI Report: Paid Sick Leave Does Not Harm Business Growth or Job Growth

The Drum Major Institute just released a new report on job growth in San Francisco, the first place in the United State to have legislation requiring paid sick days legislation. An excerpt of the report is below:

By: John Petro, Urban Policy Analyst

This report presents new data on employment in San Francisco and finds no evidence that job growth has been harmed by paid sick leave.  For the first time, we also analyze growth in the overall number of business establishments and similarly find no evidence of any negative impact. Since San Francisco’s paid sick leave law was enacted, both job growth and business growth in San Francisco have consistently been greater than in the five neighboring counties of the Bay Area, none of which have enacted paid sick leave. Business growth has been greater in San Francisco for small businesses as well as large businesses, and in specific industries such as retail, food service, and accommodations.

Although there is not sufficient evidence to conclude that paid sick time increases employment or business growth, the main findings here are consistent with a large and growing body of research that shows paid sick leave to be a cost-effective policy with positive outcomes for employers and employees, including increased worker productivity, reduced spread of illness, and other health and economic benefits.

To read the full report, please click here.