Chairman Lathrop and Members of the Business and Labor Committee:
I write on behalf of the Lincoln Independent Business Association to express our opposition to LB 955 the Paid Family Medical Leave Act.
LB 955 authorizes the commissioner of labor to impose a payroll deduction on employee paychecks and disburse the funds to qualifying employees who must miss work for care of a new child or a serious health condition.
The payroll deduction required under LB 955 has yet to be calculated and will not be calculated until after this bill becomes law. This creates an enormous unknown liability for employers and employees.
Further, this additional payroll deduction will diminish employee compensation. Already employees must endure deductions for federal income tax, state income tax, Social Security and Medicare. One more payroll deduction further erodes employee compensation and diminishes employees’ ability to care for themselves and their families as well as to contribute their earnings to our local economy.
LB 955 will discourage employers from establishing independent leave policies and has the potential to create a “use it or lose it” mentality toward medical leave. Employees, knowing they will pay for the leave regardless, may be enticed into using medical leave for occasions where it is not strictly necessary.
Therefore, because LB 955 imposes unknown costs on Nebraska employees, reduces employer ability to adequately compensate their employees, and creates a disincentive for employers to develop independent leave policies, LIBA would respectfully ask this Committee to indefinitely postpone LB 955.
President, Lincoln Independent Business Association