Crains New York - November 19, 2012 - (Page 11)

I Extension of jobless benefits is misguided f unemployment benefits aren’t extended before the end of the year, disaster will befall hundreds of thousands of New Yorkers—at least according to a carefully orchestrated effort launched last week by Democrats and liberal think tanks. This is just one of many such campaigns underway, as jobless benefits are merely one of the numerous and contentious items to be dealt with as part of the dreaded “fiscal cliff.” But it is an important one, because it is symbolic of the way the political posturing is so at odds with the economic realities. Here’s the story from the Democrats on the House Ways and Means Committee and the activists at the New York-based National Employment Law Project and the Economic Policy Institute: Some 200,000 unemployed New Yorkers get special benefits under a federal program enacted to cushion the impact of the Great Recession—a number second only to California. In addition, New York is the only state to qualify for a special 20week extension. Cutting people off from this aid will not only be awful for the unemployed but for the rest of us because they spend that money and therefore create even more jobs. At risk are 400,000 jobs nationally, the EPI claims. GREG DAVID Well, not really. Unemployment benefits are indeed an important part of the safety net that protects people in this country. The benefits have traditionally lasted 26 weeks, an amount of time sufficient to find a job. In the Great Recession,benefits were extended to as long as 99 weeks under the theory that no jobs were available. New York’s high unemployment rate— which is overstated because of statistical errors—helped the state qualify for the additional assistance. Jobs are available now. New York City’s recovery has been among the best in the country, with the number of jobs up by 200,000 in the past two years and at a record level. Even the state’s recovery is above average.The last two national unemployment reports show the U.S. economy as a whole is gaining momentum, too. Unemployment pay might have economic benefits, but it also has consequences. No less a Keynesian than John Maynard himself agreed that unemployment benefits deter people from seeking work. The irony in New York is not that benefits don’t last long enough, it is that they are inadequate for their intended purpose of temporary wage replacement. At a maximum of $405 a week, New York offers the lowest amount in the Northeast. New Jersey’s benefit is more than 50% higher. The Democratic liberal coalition isn’t seeking just a temporary extension. The object is a permanent expansion of aid to the unemployed, moving the U.S. closer to the European safety net.I can understand the rationale for that. But it will be accompanied by the kind of higher unemployment rates—especially for the young—that bedevil Europe even in boom times. That is the decision we are making if we extend jobless benefits. ROBERT S. ALTMAN S Paid-day-off bill will make business sick ome business owners reportedly have come out in favor of the City Council’s paid-sick-days bill.But while they support paid sick days as a policy, if they actually read the bill, they would realize that it is the proverbial wolf in sheep’s clothing. Business owners supportive of the law seem to think that it entails just giving everyone five paid sick days, and if that is all they do, then they are safe. Unfortunately, they are sadly mistaken. The proposed legislation is designed to establish a minimum set of standards that businesses must meet, including new government regulations on how an employer must implement a sick-days policy. If the method by which the business implements its sick days does not meet the requirements of the bill, that firm is subject to fines, damages and lawsuits. For example, let’s say a business implements a reasonable policy requiring an employee to inform his employer before using a sick day. Ironically, the law states an employer may require the policy, but then says failing to inform the employer is not a basis to deny the paid sick day or provide any discipline whatsoever, making the policy toothless. And then, if the employer actually attempts any discipline, the business is subject to fines and damages. The bill is littered with such contradictory provisions. Furthermore, even if a business meets all the requirements of the legislation, it is still at risk. Almost every business has faced a problematic employee. And it is amazing what the city can do if that employee makes an unjustified complaint. The city can examine employment records, interview current and former employees, and even subpoena all the business’ records. Does any business want to face this? Not only that, let’s say the com- pany does not even have a complaint against it. The city can still conduct an audit just to make sure the business is compliant with the entire regulatory scheme. So if a business has a sick-days policy and does everything right, it still faces intrusions from a city bureaucrat (from the Department of Health, no less). Every firm faces these regulations, as even businesses with fewer than five employees must provide unpaid sick leave. So every business should focus on this bill. And when a business does, it will be stunned. Look at all the fines. Look at all the regulations. Look at all the ways for the city to disrupt your business. Look at all the extra costs of attorneys, accountants and HR staff. Look at the potential lawsuits, since the proposed bill allows employees to sue.No business wants to face this. But all of a sudden it would, even if it does everything it is supposed to do. When a business owner says he or she supports the sick-days bill, ask a simple question: Do you support your business being subject to all the bureaucracy and excessive regulation that comes with it? The answer should come back a resounding no. Owners should oppose this legislation. Robert S. Altman is an attorney and a lobbyist for the Building Industry Association of NYC and the Queens & Bronx Building Association. November 19, 2012 | Crain’s New York Business | 11 http://www.crainsnewyork.com/events-bestplaces2012 http://www.crainsnewyork.com/events-bestplaces2012 http://www.crainsnewyork.com/40Under40 http://www.crainsnewyork.com/40Under40

Table of Contents for the Digital Edition of Crains New York - November 19, 2012

IN THE BOROUGHS
IN THE MARKETS
THE INSIDER
SMALL BUSINESS
BUSINESS PEOPLE
OPINION
GREG DAVID
REAL ESTATE DEALS
OWNED COMPANIES
THE LIST
CLASSIFIEDS
NEW YORK, NEW YORK
SOURCE LUNCH
OUT AND ABOUT
SNAPS

Crains New York - November 19, 2012