Michigan Business Owner Warns New Paid Leave Law Could Drive Prices Up and Close Restaurants
Midland business owner sounds alarm on new paid leave law, warns of price hikes and closures
MIDLAND, Mich. — A small business owner in Midland has expressed significant concerns regarding a new Michigan law set to take effect in February next year, which mandates paid sick leave for all employees, regardless of their employment status.
The owner, who operates a fast-casual chicken restaurant with her husband, shared her thoughts during a recent interview, highlighting the potential impact of the law on small businesses across the state.
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The law, known as the Earned Sick Time Act, will require employers to provide up to 72 hours of paid sick leave annually to all employees, including part-time, seasonal, and temporary workers. The business owner emphasized that this mandate could result in increased operational costs, which would likely lead to higher prices for customers.
One of the key concerns raised was the provision allowing employees to miss up to three consecutive workdays without prior notification, during which they would still be entitled to paid leave. The business owner pointed out that such a policy could create significant challenges for small businesses that rely on a consistent workforce, particularly in the restaurant industry, where timely service is crucial.
"In the restaurant business, we have people in line waiting to be served, and we can't just tell our customers to come back next week because our employees didn't show up," she said. "This law incentivizes not showing up for work, which could set a dangerous precedent."
The owner also noted that the cost of goods has continued to rise, with the price of chicken, a staple in their restaurant, more than doubling over the past year. This, combined with the added financial burden of the paid leave requirement, could force small businesses like hers to raise prices further or risk going out of business.
"I don't think they understand the real impact this will have on small business owners," she added, expressing frustration that lawmakers did not consult with more business owners before passing the law.
The business owner urged fellow Michigan residents and small business owners to contact their representatives and advocate for changes to the law before it takes effect. "This is not about politics; it's about the survival of small businesses in Michigan," she said.
As the implementation date approaches, the Michigan Restaurant Association and other industry groups are expected to continue lobbying for modifications to the law to better accommodate the needs of small business owners.