New Mexico Sun recently interviewed the owner of Tomasita’s, a family-owned New Mexican restaurant for his opinion regarding the Paid Family and Medical Leave Act (PFMLA), a Senate bill stopped by opposition this past session.
As previously reported by New Mexico Sun, due to efforts by the New Mexico Business Coalition (NMBC) as well as a number of small business groups, the proposed Paid Family and Medical Leave Act (PFMLA) came to a halt this past legislative session.
The Paid Family and Medical Leave bill, also known as Senate Bill 11, called for 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 funds 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.
The NMBC testified in committee hearings and helped facilitate over 41,000 calls and emails to legislators to help halt the passing of the bill.
According to the NMBC, PFMLA would cost well over $400 million if it became law, paid for by employees and employers out of pocket.
A survey conducted by NMBC at the end of last year with 79 small business owners in New Mexico showed a consensus that the New Mexico PFMLA proposal would hurt their businesses as well as their employees.
“Overwhelmingly, business owners are completely opposed to this proposed legislation,” NMBC President Carla Sonntag told New Mexico Sun. “Some of the responses showed frustration with government officials for putting this proposal forward and others indicated anger towards the micromanagement and unwieldy demands of elected on business owners. Some of the respondents said they cannot afford this on top of paid sick leave, after the Healthy Workplaces Act was signed into law in 2021 and went into effect on July 1, 2022.”
George Gundrey is the owner of Tomasita’s, a family-owned New Mexican restaurant with locations in Santa Fe and Albuquerque. Now in its third generation of family ownership, Tomasita’s is one of Santa Fe's oldest restaurants. Gundrey took over ownership in 2011 and has upheld the restaurant’s commitment to quality, family and community that his relatives established in the tiny café 40 years ago. Gundrey also owns the Atrisco Café & Bar, Tomasita’s sister restaurant.
New Mexico Sun had an opportunity to interview Gundrey on his thoughts on the PFMLA and how it would affect him as a small business owner.
"I understand the bill well and lobbied hard against it. It's an insurance program that all workers and employers would pay into but something like less than 15% would ever use," he said.
Gundrey also faulted the bill for, in his view, providing a lot of opportunities for misuse and fraud. The small business owner said that his primary concern with the PFMLA was that it was overly broad, which leaves too much room for abuse.
"Like the 'Healthy Workplaces Act' there is not enforcement for fraud, and it will be abused. It's another hassle that is a lot worse for family businesses than corporations. It's very broad — folks can get paid for so many things, like taking care of a 'relative' who you do not have to be related to," Gundrey said. "If all this bill did was create an insurance program that paid low-income mothers to stay home and nurse their babies for 12 weeks, I would not have a big problem with it, but our politicians make everything too broad and crazy."
Gundrey went on to say that New Mexico lawmakers should focus on other issues besides business if they want to bring about positive change in the state.
"In the committee meeting the sponsor Linda Serrato kept talking about how this is the kind of 'transformational change' she thinks New Mexico needs," Gundrey said. "We do not need more and more rules, taxes and government to make positive change. We need grassroots economic development led by small businesses and people on the ground. We need an education system that teaches students how to read, write and do math. Our elected leaders can not do that consistently, but they feel qualified and justified in micro-managing the small businesses that are still around."
Gundrey said that the bill is a poverty issue, but placing burdens on small businesses would be more harmful in the long run.
"Poverty is the default—creating prosperity is a process that must be actively pursued. Businesses are the only way to create wealth and prosperity, and lift people out of poverty. This takes decades and generations. The process of creating prosperity in New Mexico has been stifled for years due to culture and public policy," Gundrey said.
He noted how times have changed since his hard-working mother launched the restaurant.
"My mother started and built this amazing business without a college degree, a husband or help from the government. She almost failed many times. However, in the critical early stages she simply did not have the burdens forced on her by government that new entrepreneurs do today. She has told me many times that she never would have made it if she started out today."
According to Gundrey, New Mexico's policies are not friendly to businesses and will lead to many business owners choosing to do their business elsewhere.
"New Mexico is doomed to stay poor because of our leaders. And most are too closed minded to see it or even consider that they are the problem," Gundrey said. "Those of us with our eyes open just need to accept this fact and respond accordingly as best we can, because there really is no hope. If I were young and wanted to be successful in business, I would 100% leave New Mexico for a place where they appreciate small business. I am a native, and there is so much I love about New Mexico. I feel like a serf — I know I should leave but I am spiritually tied to this land! But for my kids — no way. They should build their lives elsewhere."
