Tools
Within a few weeks, Seattle City Council member Nick Licata intends to introduce legislation that would require every business in Seattle to provide paid sick leave for its workers—one hour of accrued leave for every 30 hours worked. It's modeled on a four-year-old San Francisco ordinance that applies to all workers, even temporary and part-time employees, which many say has been successful. But the as-yet-unseen Seattle proposal already has an army of business owners gearing up for a fight. And while that fight brews among the obvious players—large trade organizations, business groups, and labor unions—another fight is dividing people who are usually allies: local restaurant owners.
"My employees don't want paid sick days; they want health insurance and retirement," says Dave Meinert, co-owner of Capitol Hill's Big Mario's and owner of the 5 Point Cafe downtown. Meinert's argument is a common refrain—offering paid sick leave will cut into the other benefits employers could offer. He's not alone. Successful restaurateurs such as Linda Derschang (owner of Linda's Tavern, Smith, Oddfellows Cafe, and others) and John Howie (owner of the Seastar restaurants) are against the plan, as is the Greater Seattle Chamber of Commerce. Washington Restaurant Association president Anthony Anton says the measure could cost restaurants up to $175,000 a year. All of them have been lobbying the city council to kill the proposal before Licata even introduces it.
Stranger Personals
"If the city mandates this benefit, I can't offer my employees the benefits they want," Meinert continues. "If my employee costs go up, some other cost must go down."
Others disagree.
"I love you, but you're wrong," counters Molly Neitzel, owner of Molly Moon's Homemade Ice Cream, which has one of its shops around the corner from Meinert's pizza joint. Neitzel offers her 65 employees full health coverage and accrued paid time off. She says the cost of replacing an employee—who's unhappy at a job or lured away by an employer offering better benefits—is far higher than offering paid time off. "When you offer good benefits to your employees, they value their jobs," she says. "They stick around."
Licata's proposal, which is still in draft form, would affect businesses differently. Employees working for businesses with fewer than 10 people could accrue only five days of paid sick leave per year; employees in larger businesses could earn up to nine days. (Regardless, in San Francisco, employees use only an average of two to three sick days per year.)
Meinert, Derschang, and Neitzel all say they offer employee benefits in some form or another, be it health insurance, free meals, above-minimum-wage pay, or paid time off. The fight is about whether this proposal will actually do what restaurateurs fear—cost them money.
But Licata says skyrocketing costs is the same straw man raised against child labor laws and the implementation of a minimum wage. "Every time we make an adjustment in working conditions, there is an argument that there's an impact in profits and the way businesses are run," Licata says. "There can be no better way of measuring how well our workforce is treated than by assuring they don't have to come to work sick."
In other words, do you want someone who has the flu making your sandwich?
A 2010 study of San Francisco's ordinance appears to support Licata's conclusion: Restaurant owners have nothing to fear. In the study, six out of seven of the 1,194 workers polled by the Institute for Women's Policy Research reported that their employer didn't reduce raises, bonuses, or other benefits in order to give them paid sick time. That's because, on the whole, the measure didn't cost San Francisco business owners much money. Seventy percent of the 727 business owners polled said the ordinance didn't affect their profitability (14.2 percent reported that their profitability suffered because of the measure).
"Overall, San Francisco has seen no negative impact on jobs," explains Marilyn Watkins, policy director of the Economic Opportunity Institute, which lobbied Licata to draft the Seattle proposal. "In fact, they're doing better than surrounding cities and counties after the implementation of their ordinance."
Still, even some employees who would benefit are unconvinced. "I understand the intention, and I appreciate it," says Melanie Schweitzer, bar manager at King's Hardware (owned by Derschang). "But it won't do me much good. If I have the choice to take paid time off or switch shifts with somebody and not lose my tips, that's a no-brainer—I'll switch shifts."
Other waiters and baristas I spoke with—people who wouldn't speak on the record because their bosses wouldn't approve—see Licata's proposal as a safety net for emergency situations when a shift switch isn't possible.
Still, restaurant owners insist prices will rise, quality will suffer, and businesses will close. They also argue that this is a grocery-union fight cloaked as a policy debate and emphasize the importance of shift swapping. "If my employees miss work and they're making only minimum wage, they'd lose 50 to 75 percent of their pay," Meinert says. "This won't help us, but it might hurt us." ![]()
Take note of which establishments oppose this.
The problem is that far too many of these iniatives are being financed by big business, or those foundations being financed by big business, which places an onerous burden on the smallest businesses, which helps in the overall long-term consolidation plans of big business!
On the face of this, I agree with the overall sentiment, but far greater would be Universal Healthcare, now why don't we have that?
Or the public option?
Because Cantwell and Murray, the two faux crats, voted it down when it came to the floor of the US Senate (known as the Dorgan Amendment)!
Please, everybody, start paying attention to reality, not the literal drivel you are being constantly and consistently fed.
What am I missing?
5
It's even more important for people with kids, whether they work in service jobs or not. Kids are always sick, and parents should be able to stay home when they are.
Plus, with Molly Moon championing this, looks like I know where I'm eating out - and also where I'm not.
For example, workers can swap shifts, if they prefer, instead of taking a paid sick day. And employees must make a good faith effort to provide notice and schedule use of sick time, when the need for sick leave is foreseeable (for example, for preventative care or wellness visits).
Employers, for their part, are free to offer more generous benefits if they choose, and can require up to a 90-day waiting period before new employees can use paid sick time. Those employers that already provide an equivalent amount of paid leave for the same purposes (for example, “PTO” plans that combine vacation and sick time) do not have to modify their current policies. And employers are not required to “cash out” unused paid sick leave when someone leaves employment.
The "math of fear" being used by opponents of this measure doesn't pencil out. The average paid sick day use among employees who have it is about 3 days a year, nationwide. A few occasionally need more for major illness or injury, and a substantial portion don’t take any leave at all. In San Francisco (which has a paid sick day standard similar to the one being considered in Seattle), 25% of workers reported they didn’t take any sick leave the year prior.
Learn more at: http://seattlehealthyworkforce.org/our-p…
7
9
As for "not being able to afford it": I used to love it when my boss would tell us he couldn't afford to offer benefits or pay more than minimum wage (for what was supposedly skilled labour - this was a fine dining establishment) and then drive off with his mistress in his BMW to spend the day at the golf course. His definition of "I can't afford it" was substantially different from ours. I know very well that it is a difficult business to make money in, but I still say restaurant owners are frequently full of shit on the topic of labour costs. They also often don't appear to realize that shortchanging your employees can be false economy, because it results in higher turnover and thus lower quality of service, plus way more management headaches. (God bless restaurant owners like Molly Neitzel, who do realize this.)
14
@11 enjoy your life working at kinkos.
And there an easy fix to that "well if I offer sick time I can't offer health care" problem. Mandate the health care benefit too! We pay usually between a $1 and a $1.50 health surcharge at restaurants, but that has caused businesses to lose business.
And a related note. I have basically stopped supporting local small businesses just for the localness and the smallness of them, mainly because I'm seriously sick of the reactionary whining they do. Now if they aren't great citizens or they don't have a better product, I'm all about Starbucks et al.
Those small mom and pop shops we are all supposed to shell out higher prices to because of the evil predatory franchises?! They are always the ones lined up to oppose sick leave, healthcare, bike lanes, everything...
So fuck em!
And as others have already stated- pay attention to which bar/restaurant owners oppose this, and in return oppose giving them your money.
(And we SFers are so cheap about our cocktail prices we usually find ways to save that $1.50 by the end of the weekend.)
Also, keep in mind we added another Michelin Star post all this regulatory devilry.
And re this: "My employees don't want paid sick days; they want health insurance and retirement," says Dave Meinert, co-owner of Capitol Hill's Big Mario's and owner of the 5 Point Cafe downtown...
Yeah I'm pretty sure your employees WANT all three. And Seattle to would well by itself if it mandated you give them all three! And I would not be eating at Big Mario's or 5 Point Cafe if they were in my town!
King Co must spend a fortune sending health out to restaurants to inspect the kitchens and hand sinks, yet one ill server could infect any number of people. That said, servers might not use this benefit as readily as others since the majority of their income is in tips not wages.
I think Derschang, Meinert and the like can afford this and probably subsidize their employees insurance too ...they might have to sacrifice a touch on their part .. who knows they might actually see the benefits Molly Moon’s owners claim?
Indeed. If anything, salaried workers are worse off because employers don't have to pay them overtime. My boyfriend regularly works 12 hours a day and almost never takes a day off even when he's sick.
24
But requiring this by law? I don't know. When someone puts their life's savings into something as risky as opening a restaurant, I'm inclined to give them some leeway.
So, did you apply for a high deductible insurance plan with and set up an HSA?
Non-profit, Group Health has $2500 high deductible plans for $100 a month for under 30 yr old non-smokers. Set aside another $100 month in your HSA (Tax free!) and you're covered. That's $200 a month. Making $10/hour that's $1600 a month (virtually tax free with the earned income tax credit and all those tips you refuse to report and pay your SS taxes on) you are only paying 12.5% of month on health care coverage. Of course, I know you're all hard workers, so you work 50-60 hr weeks to cover your bills, so that's $2k+ a month, with 10% going to cover yourself.
But of course you won't. You want to spend that $200 a month on your iPhone/Netflix/beer and make some else pay the bills when you wrap your fixie around a lamppost? Well guess what, come 2015 you will have to pay. It's called 'universal coverage'. No more being a carefree hipster, you too have to contribute.
All things being equal, turnover will kill your business faster than anything else. Treating your employees like shit routinely costs businesses between 3-5k per FTE yearly. Every mixed up order by a new wait staff, every kid making minimum wage while sitting and watching your corporate training video about sexual harassment...all money wasted.
This quote is perfect. It blends the right amount of dreamy idealism with detached free market theory, with a just a hint of irony.
34
Also, this argument that paying for sick days will prevent a restaurant from buying health insurance is utter bullshit:
* Cost of 10 sick days per employee: $800/year
* Cost of health insurance per employee: $6,000/year
Anyone whining about paying for sick days certainly has no intention of paying for health insurance.
35
If their situations were as bad as they keep claiming, why would any sensible person endeavor to start-up such a business in the first place?
Over the course of approximately 8 years that I worked in restaurants, I would estimate that I worked sick for maybe 100 days. If that figure seems high, the fact that I couldn't afford to take sick days meant that I was often sick longer than I otherwise would have been. Sometimes *much* longer. But that's not what you should be concerned about.
What you should be concerned about is that I worked approximately 100 days serving you food that had been handled by someone who was wiping his nose with his t-shirt, hacking, coughing, and exhaling flu onto every customer I spoke to over a cash register.
You know who can't afford to pay for sick days? Restaurant workers who make $8 an hour to wash your dishes. So either you pay that restaurant worker to go home sick, or a guy with a cold handles your dishes before you eat on them.
You decide which situation you want to deal with.
Sincerely,
Former Restaurant Worker
37
Seriously, if conditions were as bad as they keep claiming, why would any sane business person endeavor to get into the restaurant business in the first place?
40
Dave Meinert: Owner of the Five Point Cafe, Big Mario's Pizza, Capitol Hill Block Party, and conservative blog commentator
Linda Derschang: Owner of Linda's, Smith, Oddfellow's, King's Hardware
42
And where do they open up? On top of the charred remains of the literally scores of eateries going out of business every week.
43
45
It's like saying Obamacare made insurance companies raise their premiums. No one made them do anything; they raised prices for consumers to keep more money in their pockets. In the same vein, a lot (not all, but a lot) of restaurateurs won't have to cut other benefits if this law passes, but they'll do it because they want to continue making their money and they'll prioritize it over the well-being of their employees. I don't think Howie or Derschang will be put out of business by this law. They're just greedy.
46
Besides, this isn't likely to significantly affect a restaurant's profits. Firstly, we're talking about an hour for each 30 hours, so this isn't an unlimited pool of free cash being handed out to lazy waiters. Secondly, even if a business' workers are somehow so sick that their sick leave adds up enough to drive the place out of business, the last thing we need is for this business to keep serving food to the public. To be concerned about those many sick days, they'd have to be doing their hiring from a leper colony.
Further, a sick employee is way less productive than a healthy one, so your sick worker will make you less money than usual that day anyway. Not only this, but he will be sick (and unproductive) for longer due to lack of rest. Meanwhile, he's getting your other workers sick, and they're less productive when they come to work sick the following week. This can add up to hurt your profits more than one or two paid sick days, even though it's not as direct. This is aside from the potential loss of business should any customers notice how sick their waiter is.
You can debate whether or not this should be legally mandated, or you can debate some of the finer points of how it should be implemented to avoid fakers. But it's pretty clear that a sick worker causes a business more damage when they're getting paid at work than when they're getting paid at home.
And the only way to reasonably expect your employees to actually take unpaid sick leave is if they're highly paid enough to sacrifice their day's pay. And really, isn't this more expensive than just offering the occasional sick day?
There's a logical fallacy that I've noticed where people believe that any policy that shows leniency or generosity towards workers must be bad for business. That's not true. It may be more difficult to quantify the costs of lower productivity, lower morale, higher turnover, and a bad reputation for diseased waitstaff; but this doesn't mean that the costs aren't significant.
47
I suppose it could be said in the case of some small arts orgs, but very few of the ones with which I've been associated with; in part, because we recognize how little we CAN offer people who choose to collaborate with us, we make a point of doing as much as we can in terms of providing them with a clean, safe, comfortable working environment.
By the way small business owners are not often rich people. $800 per employee? Multiplied by 20 employees? That is most likely a 20% pay cut to a small business owner. Hourly, most servers make more than the owner of the business where they work.
49
The law offers approximately eight days of sick leave a year. How, exactly, is that going to bring the world to an end?
8 days times 20 employees is 160 days out of the year that a restaurant has to function understaffed (giving the customer a sub-par experience or in some instances no experience), or sending someone into overtime, or missing deliveries etc.
All of this and more so that a small business owner, who scrapes by to add something that they believe is valuable to the community, can subsidize an employee's drunken binge out of their already meager margins.
Who's going to pay the entrepreneur's sick leave? Oh that's right, they have to work everyday come hell or high-water and then get unproportionately taxed for the privilege.
Could this be another example of making the middle class shoulder the majority of the burden so that the wealthiest people don't have to do their part for society and lower income people can avoid responsibility for themselves?
There is an inaccurate perception that anyone who owns a business, no matter how small, is well to do. When in fact in proportion to the investment of time, sweat and soul they make very little.
When I see a member of the Chamber of Commerce sharing a 1 bedroom apartment w/ 2 other people and taking 3 busses to get to work, I'll be a tad more sympathetic to their "it'll break me" argument.
53
You haven't been paying much attention have you? Yes, in your hypothetical scenario that would be the case IF EVERY SINGLE EMPLOYEE TOOK EVERY SINGLE ALLOCATED SICK DAY. But, as people have pointed out on numerous occasions on this thread, that's simply not the case. While a few employees might max-out their sick leave, most will only take a day or two, while some won't take any at all. Plus, your scenario doesn't take into account the already common practices of shift-swapping or other employees not scheduled that day otherwise covering the shift.
And clearly your attitude toward your "drunken binge(ing)" employees tells me just about everything I need to know, because: A.) it's none of your fucking business HOW your employees spend the money they earn; B.) if their off-the-clock recreational activities are causing problems in the workplace, you have options, including termination; C.) nobody owes you a fucking dime for your "entrepreneurship", so get over your "middle-class victim" persecution complex already, and; D.) just remember that, if your business goes belly up tomorrow, in the larger scheme of things, no more than a handful of people will notice your absence by the following week. Besides, if what you do, and the people you hire to do it are so onerous to you - why the FUCK are you doing it in the first place?
Oh, right. You're "providing something of value to the community". Give me a fucking break. You're not curing cancer, or preventing suicides, or cleaning up the environment - THOSE things have "value to the community". No, you're just serving FOOD. It ain't rocket science, and it sure the hell ain't fucking altruism either.
So, if you really WANT your employees coming in to work SICK, TO SERVE FOOD TO THE PUBLIC, then please, tell me what restaurant(s) you own, so that in the future I can make a point of never setting foot inside your vile, putrid den of pestilence at the risk of my own health.
54
And by the way, out of all the jobs I worked to put myself through college, the owners took an awful lot of vacations for people who "work every day come hell or high water."
Oh, and I didn't drink until I STOPPED working service jobs. I couldn't afford it back then. So no, poor people are not just a bunch of lazy out-of-control drunks out to oppress the overworked business owner. Have you ever even had a restaurant job, or did mommy and daddy pay for everything through college and grad school so that you never had to mix with the peasants and get a more realistic view of them than this cartoonish bullshit?
55
Wow, I'm finding that hard to square with:
"Hourly, most servers make more than the owner of the business where they work."
It's as if one of the opinions is at least half a crock of shit?
58
60
"To get away from it all, [Dave] and family escape to a secluded lake on the back roads of Mason County where his relatives kept summer cabins during his childhood. Recently he bought a tree-studded, three-acre island in the lake where, as a kid, he used to hang out with cousins."
Or will Linda Derschang have to downgrade from her million-dollar NYC penthouse to something a bit less extravagant? Doubtful.
"Linda owns three businesses, a half-million-dollar Pine Street penthouse condo with palm trees and a view, a silver Mercedes convertible, and half of a New York City apartment. 'Thank god for Jet Blue,' she jokes."
These people are lying when they claim they can't afford a basic benefit like paid sick days for their staff.
61
I am all for paid sick days! It is the least my work can do for me after all I do for them.
62
Reductio ad absurdum
They say that any proposal would have to cost their employees something else. Because they are certain where the money won't come from: their net business profits or six figure personal income.
(Also my favorite part: "Meinert, Derschang, and Neitzel all say they offer employee benefits in some form or another, be it health insurance, free meals, above-minimum-wage pay, or paid time off."
FREE shift meals? $8.75 an hour? BOY THANKS.)
- Also, being forced to clock out for 15 minutes so they don't get a paid lunch,
- being clocked out at 39-1/2 hours so they don't accidentally get overtime.
-having their time averaged over 2 weeks to avoid paying overtime.
-being scheduled for 29 hours/week (or whatever the cutoff is at a given company) to avoid benfits
-having employees do personal work for owner while clocked in
-have employees mis-enter inventory for tax advantage
-etc. etc. etc.
I appreciate small business owners entreprenurial spirit and drive to 'make it'. but taking advantage of your employees is the norm, and places that treat their people well should be lauded.
(But as it is, these cheap fucks bank on patrons not being able to pinpoint how they got sick... which is really fucked up)
71
All the skullduggery that you mentioned goes on in the healthcare industry as well.
How's that for a cheery thought?
Be nice to the person taking your vitals: they're disposable "service" workers, too. and if they get sick? So what?! Doc needs his coffee and you had *better* be quick about it.
Let me tell you all how it would directly effect a business and its employees.
I am a small business owner in Seattle, I have been in business for 8 years and have 12 full time employees. My business grosses around $432,000 a year, sounds like a ton, huh? Well, my Cost of Goods are $172,800/labor is $138,240 /General Expenses are $95,000. This leaves $25,960 /year as profit. I work 40 hours a week, sometimes more, and bring home $2163/month. This breaks out to be $13.50/hour which is actually less than some of my employees. I'm not complaining, I love my business, my job and all my wonderful employees.
BUT, if this initiative passes it could cost me $1080 per employee each year which would add up to $12,960 every year. Remember that I bring home $25,960/year which would bring that sum down to $13,000/year.
I could not support my family should this pass and would be forces to close my business.
This would mean that the city would no longer get the $518,000/year in sales tax that by business collects for them but myself and 12 other people (8 of which have families) are out of work!
Here's a bit of irony for you...I am on my way into work to cover for an employee who is sick. With this initiative, not only would I have to cover his shift, but I would pay him for every hour I work...wow!
Translation: Molly Moon's employees get health insurance and time off, while Big Mario's employees get the crusts from the compost bin.
Way to equivocate. Is this biased or just sloppy?
But since society won't pay and you can afford it, it would be great if you would voluntarily give health insurance and PTO.
You're paying $172,800 in labor now, right? If you're paying each employee to work ~200 days a year, but under this law they would work about 197-198 days, your labor costs are effectively going up about $2000 total. For that price you get a healthier workplace and no more "office colds" which damage productivity themselves.
And keep in mind 70% of SF businesses said there was no impact..
And what if you factor in, just spit balling a figure here, a twenty-five cent increase in all prices? I doubt an extra quarter will drive customers away in droves.







RSS
Comments (80) RSS