When Jurgen Koster heard small business owners raising concerns about Allegheny County’s proposed paid parental leave mandate, he saw a common problem — many didn’t know exactly what the policy would cost them. So the New Kensington resident built a free online calculator to help employers estimate the impact on their bottom line.
The tool comes as the Allegheny County Board of Health considers a regulation that would require employers to provide up to 18 weeks of paid parental leave to workers who give birth, adopt or foster a child. While supporters say the proposal would help families and improve health outcomes, some small business owners have argued it could create significant financial burdens.
Koster, who is the only employee at his company, said the cash flow tool is not designed to promote or discourage the proposal, rather just inform small businesses on potential cash flow issues.
“It’s like a pre-planning tool in my opinion,” Koster said.
Koster launched his own online marketplace business Yinz Mart, about a year ago. The platform specifically houses local Pittsburgh businesses and products in one place, so users can shop locally.
Since the current draft of paid parental leave applies to all businesses equally regardless of size, Koster decided he wanted to provide a voice to the small business community.
“I feel like people care about small businesses, but it does sometimes feel like we don’t really have a seat at the table, and I thought if there was a better way for small businesses to communicate the issues that they’re going through then we might be more welcome to the table,” Koster said.
Raymond Ramey, COO and co-owner of Brave Bean Coffee Company, oversees a staff of three full-time and four to five part-time employees at the company’s Pitcairn and North Shore locations.
Using the calculator, Ramey entered information including his number of employees, available cash reserves and employee salary data.
The tool estimates the cost of providing paid leave by calculating continued wages, employer payroll taxes and benefits, along with any additional costs associated with covering the employee’s work during their absence. It then compares those expenses against a business’s available cash reserves to estimate when funds could be exhausted.
Ramey said he has roughly $10,000 to $15,000 on hand at a time.
“It definitely runs out,” Ramey said.
He declined to say exactly when the calculator projected his business would run out of cash.
Ramey said Brave Bean Coffee Company, which opened its first location in 2023, is still in “start-up mode.”
“We’re still trying to break even as it is,” Ramey said. “It’s a huge burden.”
According to data from the JPMorgan Chase Institute, the median U.S. small business has roughly 27 days of cash reserves on hand. In retail and restaurant industries, that figure falls to between 16 and 19 days, while the most financially vulnerable quarter of businesses hold 13 days or fewer.
The proposal is being reviewed by the county’s Board of Health.
The Board of Health will vote on the measure as soon as July before passing it along to Allegheny County Council for a final decision.