The National Federation of Independent Business (NFIB) Virginia urged lawmakers on March 9 to reject a proposed paid leave bill, saying it would create new burdens and legal risks for small businesses.
The debate comes as small business owners face economic uncertainty and tight profit margins. The NFIB said the legislation could make it harder for these businesses to compete and survive.
Julia Hammond, NFIB State Director, said, “This one-size-fits-all approach simply doesn’t work for small businesses. They already bring their best flexibility and benefits to the table while competing with their large corporate competitors to hire and retain great employees.”
Hammond warned that the bill would set up a complicated enforcement system, allowing complaints to be filed with the Virginia Department of Labor and Industry. The department could investigate alleged violations and impose fines on employers. She also noted that workers could bypass this process entirely by suing their employers directly in court. The legislation would permit lawsuits seeking double damages, reinstatement, lost wages, attorney fees, and court costs.
“Small businesses run on thin margins,” Hammond said. “The cost of defending themselves against one frivolous lawsuit can be enough to put them out of business.”
Hammond added that the timing is especially troubling given recent federal jobs data showing signs of a weakening labor market. “With the economy already showing signs of stress, lawmakers should be focused on helping small businesses create jobs, not saddling them with costly new mandates and more exposure to lawsuit abuse,” she said.
