The New Mexico Healthy Workplaces Act is making many business owners sick, according to one business leader.

The Healthy Workplaces Act provides up to 64 hours of paid time off each year to employees, and some at a New Mexico Business Coalition Zoom meeting took issue on Aug. 17.

“This is not a good piece of legislation,” NMBC President Carla Sonntag said during the Aug. 17 meeting.

New Mexico Business Coalition President Carla Sonntag intends to conduct a survey to get feedback on the law and show how opponents can try to affect change before next summer. | New Mexico Business Coalition

No consideration is given to the size of the company. On March 15, NMBC had urged people to contact Gov. Michelle Lujan Grisham and ask her to veto the bill.

Protests from the NMBC and businesses across the state did no good. On April 7, Lujan Grisham, a first-term Democrat, signed the measure into law.

“House Bill 20 Healthy Workplaces Act is the most burdensome in the U.S., and while there is no consideration for small employers, state government agencies are exempt,” the coalition said on its site. “The bill requires paid sick leave be provided by all employers accumulating at a rate of one hour for every 30 hours worked and is prorated for part-time employees. 

“It passed two committees in both the House and Senate on a straight party-line vote with Republicans voting against," it added. "The full House vote however had nine Democrats joining Republicans against the bill providing narrow passage by 36-33. If it is such a good idea to force this on business, why is there an exemption for state agencies?”

Lujan Grisham pushed back.

“This is, point blank, a humane policy for workers,” Lujan Grisham said in a statement. “No one should ever be compelled to come to work when they are sick. And no worker should ever feel they must choose between their health and their livelihood.”

The law is scheduled to take effect July 1, 2022, according to NM Political Report. It will cover missed work due to sickness, injuries, and family medical appointments, as well as missed days because of domestic abuse or sexual assault.

During the Zoom meeting with business owners, concerned citizens and lobbyists offered comments and ideas. There was a growing opposition to the new law.

One man referred to it as “mandatory vacation time” and said many business owners are displeased. That message needs to be sent to the governor, he said.

“People are not happy about this at all, the way this is set up,” he said.

A state legislative director for the National Federation of Independent Business said that government mandates, such as paid sick leave requirements, can have “strong implications, especially on the small-business community.”

Similar to the findings by the U.S. Chamber of Commerce Foundation, it also was noted that even without paid sick leave policies, regulations on businesses can cost tens of thousands of dollars per employee per year.

New Mexico's small businesses have been gutted by the COVID-19 pandemic and subsequent restrictions, the New Mexico Sun reported. According to the report, there are 40% fewer small businesses open in New Mexico today compared to January 2020.

A recent study on mandatory paid sick leave conducted by a state policy-focused think tank based in Texas indicated that “mandatory paid sick leave ordinances do not achieve their intended purpose of allowing employees to take time off when they are sick.”

Additionally, the report concluded that the “cost and consequences of mandating paid sick leave negatively affect[s] employers, employees, and consumers.”

Sonntag was asked if there would be flexibility for smaller companies with part-time and seasonal workers. She wasn’t optimistic.

"I looked at every other state that I could find that had a (sick leave) law and New Mexico’s is the most stringent. It is the most difficult to comply with and has the highest accumulation of hours and how they are accrued and how they’re used,” Sonntag said.

She also was asked when the rule-making process would commence. It was said that it would likely occur after the 2022 legislative session.

Sonntag said it’s unfair that state, county and municipal governments are not bound by this same rule. One woman during the meeting noted that private engineers are forced to compete with state, county and city engineers who don’t have to meet such a demanding standard.

“When they become subject to the laws they are making, they have a different concept of what that law ought to be,” Sonntag said.

Another concern was workers immediately accruing leave time. There is no provision for a a probationary period, either 30 or 90 days, which many employers have in place for new hires.

Sonntag intends to conduct a survey to get feedback on the law and show how opponents can try to affect change before next summer. The coalition is seeking to join with others who oppose the law, because according to her, “I think the more feedback that we get, the better decisions that we can make as a group.”

Charlie Marquez, a professional lobbyist with years of experience, has joined the coalition and was tapped to lead the effort.

Mandy West of Mountain West Insurance and Financial Services recommended contacting the Human Resources Association of New Mexico and working with it.

Another suggestion was to support an alternative piece of legislation pertaining to sick leave. Sonntag explained that was tried during the 2021 session and failed, but it might be worth another attempt.

Sonntag declared that the major goal is to replace elected officials who are not business-friendly and who craft and pass laws like the sick leave legislation.

In 2017, the aforementioned U.S. Chamber of Commerce Foundation study "found that regulations at all levels can hold businesses back—especially small businesses," Sonntag said. "The study asserts that state-level regulations—such as minimum wage requirements, licensing regulations—were seen as 'piling on' to the already burdensome and rigid mandates handed down from the federal government."