A Healthy Standard:

Policy Matters Ohio A Healthy Standard: Paid Sick Days in Ohio Policy Matters Ohio 2007 www.policymattersohio.org

Policy Matters Ohio Policy Matters Ohio is a not-for-profit, non-partisan policy research institute, dedicated to researching an economy that works better for everyone in Ohio. The full report, A Healthy Standard: Paid Sick Days in Ohio, with footnotes and citations, is available online at http://www.policymattersohio.org/ www.policymattersohio.org

Policy Matters Ohio International Exception In every other advanced industrialized nation in the world, employees are permitted to stay home when sick on limited occasions, without fear of losing their pay or their job. The U.S. is alone among the top 20 most competitive economies in failing to provide this healthy standard. www.policymattersohio.org

Policy Matters Ohio Current Federal Law • Federal law does not provide for paid sick days. • Family Medical Leave Act • Provides unpaid protection to employees facing a serious medical situation or life event. • Can not be used for routine absences. • Contrasts sharply with law in all other advanced industrialized nations. • At least 145 nations require employees be provided with paid sick days (at least 1 week). • Our economic competitors like Germany, France and Canada require paid sick days • Developing nations also have requirements (Ethiopia, Zambia, and Mexico). www.policymattersohio.org

Policy Matters Ohio Who Cares? Why does it matter? When workers can not earn paid sick days, several negative consequences can occur…… www.policymattersohio.org

Policy Matters Ohio People go to work, despite being sick… • This exposes colleagues and customers, spreading illness. • It increases likelihood of injury, particularly in physical jobs. • It reduces productivity – sick workers coming in costs more than absenteeism according to study in Harvard Business review. www.policymattersohio.org

Policy Matters Ohio Kids’ care suffers… • Some children go to school sick, exposing classmates and teachers. • Teachers and schools have to deal with kids who can’t learn well when sick. • Sometimes older children are pulled out of school to care for sick siblings. • Children’s recoveries can be delayed. www.policymattersohio.org

Policy Matters Ohio Families struggle economically • Sometimes workers stay home even though their employers don’t have a clear policy. This means they lose a day of pay, which many workers can’t afford. • Some workers who miss work are also putting their jobs at risk. www.policymattersohio.org

Policy Matters Ohio We need paid sick days more than ever…. www.policymattersohio.org

Policy Matters Ohio Working More Families are working more: • Women are more likely to be in the labor force than ever before. • Two-parent families with children have increased their work hours more than 16% in past generation. • Single parent families have also increased work hours. www.policymattersohio.org

Policy Matters Ohio Source: EPI analysis of CPS data, all women over age 16 www.policymattersohio.org

Policy Matters Ohio Source: Economic Policy Institute (EPI) analysis of Current Population Survey (CPS) data www.policymattersohio.org

Policy Matters Ohio Despite increase in parental working, employers have not increased access to sick days. • Numbers that can use sick days to care for sick children are even lower www.policymattersohio.org

Policy Matters Ohio Source: Analysis of Bureau of Labor Statistics’ Employee Benefits Survey, 1980-2006, retrieved July 2007 from http://data.bls.gov/PDQ/outside.jsp?survey=eb www.policymattersohio.org

Policy Matters Ohio Who can earn paid sick days? The majority of Ohio workers - 58% - can earn paid sick days. This standard works well for most workers in Ohio and their employers. However a large minority of Ohio workers – 42% - can not earn paid sick days. More than 2.2 million Ohio workers must work when ill or forego pay. www.policymattersohio.org

Policy Matters Ohio Used with caution Most workers never use a single paid sick day in a typical year. On average workers miss just 3.9 days for their own illnesses. Despite the very modest use, sick days are crucial to have when workers need them. www.policymattersohio.org

Policy Matters Ohio Coverage low in sectors with extensive public contact: • Retail trade (less than half); • Arts, entertainment & recreation (just over 1/3); • Accommodation & food service (less than 1/4). These three sectors combined have more than 670,000 Ohio workers without sick days. This leads to spread of disease. www.policymattersohio.org

Policy Matters Ohio Occupational Hazards Lots of uncovered workers in jobs involving dangerous equipment: • Just 25 percent of construction workers have paid sick days: > 170,000 Ohio construction workers unprotected • Nearly half of manufacturing workers – almost 400,000 Ohioans – cannot earn paid sick days. This can lead to more injury. www.policymattersohio.org

Policy Matters Ohio

Policy Matters Ohio Access to Paid Sick Days All told, more than 2.13 million private sector workers in Ohio can not earn paid sick days. If they or their children get a cold, flu, or something worse, they have to lose pay and possibly put their job at risk, or go to work despite their own or their child’s illness. This isn’t working. www.policymattersohio.org

Policy Matters Ohio • Public sector workers are much more likely to be able to earn paid sick days in Ohio and nationwide. Who can? • All U.S. government employees • All Ohio state employees County and city coverage mixed – we estimate that about 80,000 local employees in Ohio don’t have paid sick days. www.policymattersohio.org

Policy Matters Ohio Middle class struggle • Those who can least afford to take an unpaid day (or lose their job) are most likely to be put in that position. Who can not earn sick days? • 79% of those earning ≤$9.23 an hour • 46% of those earning $9.23 - $13.94 an hour • 38% of those earning $13.50 - $21.65 an hour www.policymattersohio.org

Policy Matters Ohio Across the spectrum While it’s certainly hardest for low- and middle-income workers, even among those in the top quarter of earners, nearly three in ten have no paid sick days. www.policymattersohio.org

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Policy Matters Ohio Quality of Plans When workers have paid sick days, plan quality can vary widely. Higher income workers are more likely to have paid sick days at all, to have more paid sick days, and to have a shorter waiting period before they are allowed to use those days. Middle income and lower-wage workers – if they get sick days at all – have fewer days and longer waiting periods, even after a number of years on the job. www.policymattersohio.org

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Policy Matters Ohio Caring for Kids • Even workers with paid sick days are unlikely to be able to use those days to care for sick children. • Only 30% of workers get paid days to care for sick children. • More than 3.55 million Ohio workers would have to forego pay to care for a sick child. www.policymattersohio.org

Policy Matters Ohio An Ounce of Prevention Paid sick days encourage workers to get preventive health care for themselves and their children. Preventive health care: • Prevents health problems • Detects health issues early • Reduces long term health costs • Leads to better long-term health care outcomes. www.policymattersohio.org

Policy Matters Ohio Ideal area for policy intervention • Many employers do the right thing. • Those who don’t, don’t bear full cost of their decision. • Negative externality. www.policymattersohio.org

Policy Matters Ohio Ohio Proposal In workplaces of 25 or more, employees would be able to earn paid sick days. • Up to 7 paid sick days for full timers (≥30 hours). • Part-timers covered on a pro-rated basis • Can be used to recuperate, see doctor, care for child or other family member www.policymattersohio.org

Policy Matters Ohio Ohio Proposal • Employers not required to allow sick day usage until employee has been employed for at least 90 days. • Employers could require employees to give reasons for absence, doctor note or expected length of absence. • Employers not permitted to reduce existing leave policies in response to new law. www.policymattersohio.org

Policy Matters Ohio Proposed Legislation • Advocates currently circulating petitions to submit an initiated statute to the Ohio General Assembly. • Assembly enacts proposal • no further action is needed. • Assembly fails to enact proposal • additional petitions to place issue on 2008 ballot. www.policymattersohio.org

Policy Matters Ohio Net Savings • Sick day policy would result in a net savings in Ohio. • Cost for providing sick days would be $3.13 per worker per week. • Savings for providing sick days would be $4.39 per worker per week. • Net savings of $1.25 per worker per week. www.policymattersohio.org

Policy Matters Ohio Source: IWPR analysis of BLS data. Measures impact of federal Family Leave Act, which differs slightly from Ohio proposal. Costs and savings spread across entire Ohio workforce. www.policymattersohio.org

Policy Matters Ohio Summary • Works well in all other advanced economies. • Works well for majority of U.S. workers. • Encourages preventive care. • Shortens duration of illnesses. • Reduces spread of disease. • Helps kids recover quicker. • Lets families meet responsibilities of work & home. • Is used when needed – often not used at all. • Saves money. www.policymattersohio.org

Policy Matters Ohio What’s Up Elsewhere? • Similar bills introduced in ten states plus D.C. • Seven states now mandate that employees can use sick days to care for ill family members. • City of San Francisco voted to provide residents with 9 paid sick days per year. • Milwaukee aiming for April 2008 ballot initiative. • Senator Ted Kennedy and Representative Rosa DeLauro have introduced federal bill - similar to Ohio proposal. www.policymattersohio.org

Policy Matters Ohio Conclusion A paid sick day standard would be good for Ohio. It would reduce the spread of disease, encourage preventive care and recovery, allow parents to be with sick children, and improve worker well-being. The cost is extremely modest and the savings exceed the costs. Most workers won’t even take a sick day in a typical year, but having this basic standard will enable them to take this time when they need to. An economy as prosperous as ours, in which parents are expected to work, requires that we provide workers with the basic flexibility that allows them to manage their lives and their health. www.policymattersohio.org

Policy Matters Ohio To learn more, download the full report A Healthy Standard: Paid Sick Days in Ohio www.policymattersohio.org Policy Matters Ohio: Creating an economy that works better…. For all www.policymattersohio.org

A Healthy Standard: