We welcome the news from throughout the nation that America’s economy is showing signs of improving and jobs are growing. In Pennsylvania, November’s unemployment rate fell further to 5.1 percent, according to figures from the state Department of Labor and Industry. And while good employment news is shared by most of the 11 counties that make up the Greater Philadelphia metropolitan region, Philadelphia had the highest unemployment rate among them.

As chambers of commerce representing over 7,000 businesses throughout the city, our shared mission is to attract, retain and grow jobs throughout the city. Ensuring we remain competitive with other cities around the world is key to attracting and retaining new businesses and talent. 

We have much to boast about. Our city has world-class academic institutions, superb infrastructure, a strategic location amid the most populous market in the Northeast United States, and a growing manufacturing sector and entrepreneurial community. In addition, with an enormous new source of energy being developed in the Marcellus Shale, Philadelphia is well-positioned to be a leader in energy production and resources, providing good, family sustaining jobs for its residents.

Yet despite these great assets, Philadelphia is consistently rated as having one of the highest tax burdens in the nation. Businesses and workers in Philadelphia not only pay high taxes, they are subject to numerous regulatory burdens as well, particularly onerous for new startups and emerging entrepreneurs.

To make matters worse, Philadelphia City Council will consider a bill later this month requiring all businesses and nonprofits with ten or more employees to provide paid sick leave for employees working in the city.  While we strongly support healthy families and workplaces, the last thing city businesses need is another mandatory cost imposed by city government. Furthermore, by requiring this benefit only in Philadelphia, costs will be placed on Philadelphia employers not borne by similar businesses in neighboring jurisdictions.

Small employers that don't provide paid sick leave in most cases have made that choice because they can't afford it. If forced to do so, many employers would have to eliminate other benefits, such as reducing hours for their employees, freezing wages, and eliminating bonuses. Worse yet, some employers may decide that they cannot expand their operations or even have to lay off employees to pay for the added expense of paid sick leave.

To ease the effects of this mandate, we urge City Council and the Mayor to consider the following amendments to the legislation: 

• Raise the employer threshold to 50 or more employees - to allow emerging small businesses the chance to grow, aligning the legislation with the federal Affordable Care Act’s definition of a small business; and
• Exempt employers that currently provide leave to their employees if they meet or exceed the sick leave requirements specified in the legislation.   

A large majority of Chamber members already provide paid sick leave. We remained concerned about mandating paid sick leave because we believe it is inherently unfair to those small employers who cannot afford to do so. We believe that it is important for Philadelphia to remain competitive with its neighboring jurisdictions if it is to create jobs and grow opportunities for all of its citizens. Mandating benefits in a vacuum hurts rather than helps the city’s competitive position.

With the labor market still recovering, policy makers should focus on promoting job growth, improving the city’s business tax structure, and removing disincentives for locating businesses in the city.

City Council and City Hall say they want Philadelphia to be considered business friendly. Actions speak louder than words. Instead of enacting mandates on businesses that drive up operating costs and create barriers for entry-level employment, provide incentives for businesses to come here and keep current businesses from packing up and moving to neighboring counties.