A bill in the New York City Council guaranteeing workers the right to earn paid sick leave is closely modeled on a law enacted by San Francisco in 2007. By examining the impact of San Francisco’s law we can better understand the likely impact of paid sick leave legislation on businesses and employment in New York City.
This study presents new data on employment in San Francisco and finds no evidence that job growth has been harmed by paid sick leave. For the first time, we also analyze growth in the overall number of business establishments and similarly find no evidence of any negative impact. Since San Francisco’s paid sick leave law was enacted, both job growth and business growth in San Francisco have consistently been greater than in the five neighboring counties of the Bay Area, none of which have enacted paid sick leave. Business growth has been greater in San Francisco for small businesses as well as large businesses, and in specific industries such as retail, food service, and accommodations.
Paid Sick Leave Does Not Harm Employment