As a former small business owner, I appreciate and support the goal of helping new parents spend time with their children and maintain financial stability during an important life event. However, Allegheny County’s proposal to require 18 weeks of paid parental leave from every employer needs further study and consideration before it is adopted, particularly in regard to how it will impact small businesses. Something as important as this proposal should not be rushed into.
I understand firsthand the financial realities faced by local employers. Payroll was consistently our largest expense. During slower periods, there were times when my husband and I chose not to take paychecks ourselves in order to keep our employees paid and the business operating. Without the financial resources available to large corporations, small business owners often operate on very narrow margins.
Under the proposal, an employee who has worked as little as 30 days could be entitled to 18 weeks of paid leave, with no guarantee that the employee will return to work afterward. For many small employers, this would create a significant financial burden.
The business may be required to continue paying the employee on leave while also hiring and training a temporary replacement, in effect paying for one position twice over for an extended period of time.
While large corporations may be able to absorb these costs, many small businesses cannot. The results could be reduced hiring, delayed expansions, reduced employee benefits in other areas or even closures of otherwise viable businesses.
Small businesses are the backbones of local communities, providing jobs, services and economic activity. Policies that unintentionally threaten their sustainability deserve careful scrutiny.
There are also broader economic considerations. Increased labor costs are frequently passed on through higher prices for goods and services. Consumers will ultimately bear some of these costs, which can reduce purchasing power and potentially slow consumer spending.
I respectfully urge county leaders to conduct a thorough economic analysis before moving forward with this proposal. Consideration should be given to factors such as employer size, employee tenure requirements, funding mechanisms and potential alternatives that support families without placing an unsustainable burden on small businesses. A policy of this magnitude should be carefully evaluated to ensure that it achieves its intended goals while avoiding unintended harm to local employers, employees and consumers.
Terry Hanis is a lifelong resident of the City of Pittsburgh and a former small business owner in the West End. She is a member of the TribLive Pittsburgh Community Advisory Panel.