Small business case for paid family and medical leave


Efficiency and cost savings

Paid leave contributes to reduced turnover and higher employee morale and loyalty, leading to productivity increases and significant cost savings for small businesses.

Evaluations of existing state paid family and medical leave programs demonstrate that leave doesn't increase costs for small businesses, and is feasible to implement.

Financial security

Paid family and medical leave provides critical financial security for small business owners themselves, allowing them to support and retain employees when serious family and medical needs arise. These programs spread costs and minimize administrative requirements through a pool funded by minimal contributions shared equitably between the employee and small business owner.

Level playing field

Small businesses often lack the capital and the scale to provide benefits like paid family and medical leave even when business owners want to provide those benefits. Many very small businesses are unable to find any affordable options through private insurers.  

Paid family and medical leave laws help level the playing field between small businesses and large corporations, allowing small businesses to compete on more equal footing.

Strong local economies

Paid family and medical leave dollars go right back into the local economy, boosting consumer demand at small businesses, as working people spend their increased earnings to cover the basics at their local shops.