New Mexico Business Coalition (NMBC) President Carla Sonntag sat down for an interview with New Mexico Sun regarding the Paid Family and Medical Leave Act (PFMLA), which was recently stopped this past legislative session.

As previously reported by New Mexico Sun, this past session, the NMBC, as well as a number of small business groups, helped to stop the Paid Family and Medical Leave Act (PFMLA) from passing. It was legislation that would have required workers to receive 12 weeks of paid family and medical leave.

New Mexico Sun previously reported that PFMLA, also known as Senate Bill 11, would be a state-run program managed by the Department of Workforce Solutions. Both employees and employers would contribute to the state-managed fund that would provide the money necessary to pay workers a portion of their wages in the event they require paid time off for family or medical leave. The cost for employees would be $5 for every $1,000 of wages. The formula for benefits is 100% of minimum wage plus 67% of wages above minimum wage.

Carla Sonntag | Provided

The NMBC was part of a task force created to advise New Mexico lawmakers on the issue. NMBC testified in committee hearings and helped facilitate over 41,000 calls and emails to legislators to help stop the passing of the bill. 

A survey conducted by the NMBC at the end of last year, with 79 small business owners in New Mexico regarding the New Mexico Paid Family Medical Leave Act (PFMLA), indicated that the proposal would in fact hurt their businesses as well as their employees.

Sonntag told New Mexico Sun that the NMBC was the only vocal opposition to the initiative on the PFMLA task force.

"For the most part, everyone on the task force was asked to serve because they supported the passage," Sonntag said. "One point that was key to stopping the bill was when I testified in the final committee about NMBC's statewide, multiple organization survey of business owners. The task force organizers had agreed to include the results in their final legislative report, but when they saw the overwhelming opposition to the PFMLA, they refused to include the information."

Sonntag says that although the bill was stopped this session, the governor and numerous legislators in the majority that support the PFMLA have vowed to bring the measure back next session for consideration.

According to the NMBC, PFMLA would cost well over $400 million dollars if it becomes law, paid for by employees and employers to pay out of pocket.

"Every business and employee in the state would be affected by this bill because it is a tax on wages and businesses," Sonntag said. "Several survey respondents indicated it would be devastating to their business operations to have yet another tax on their operations. Many employees also do not want this additional tax on their earnings."

Sonntag wants New Mexico residents to knew that the PFMLA Act "is not a business-friendly measure and is yet another reason why existing businesses would not want to expand in our state."

She added that the measure would actually deter new businesses from choosing to come to New Mexico.

"New Mexico would benefit greatly if our government would establish pro-business policies that allow businesses to expand and create more jobs for the people," Sonntag said. "The constant overreaching regulation is a deterrent to that objective and is why many people categorize New Mexico as a very unfriendly place to do business."