COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. No.:         3816-01

Bill No.:          HB 1840

Subject:           Business and Commerce; Employees - Employers; Labor and Management

Type:              Original

Date:               February 11, 2008

Bill Summary:            This proposal requires certain businesses to provide four weeks of paid maternity or paternity leave for its employees.

FISCAL SUMMARY

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 4 pages.

☐ Estimated Total Net Effect on All funds expected to exceed $100,000 savings or (cost).

☐ Estimated Net Effect on General Revenue Fund expected to exceed $100,000 (cost).

FISCAL ANALYSIS

ASSUMPTION

Officials at the Office of the Attorney General assume that there is no fiscal impact from this proposal.

Officials at the Department of Labor and Industrial Relations assume the legislation does not indicate the consequences if a business does not pay the employee. If an employer violates this proposal and an employee quits because of this violation, the situation could be considered good cause to quit under the unemployment insurance law and the employee would be eligible for unemployment benefits.

The bill would cover 57% of the Missouri workforce (1,633,313 of 2,849,376), according to the Division of Employment Security quarterly wage reports. Based on the number of potential Missouri workers affected, it is assumed the number impacted would be large; however the Department has no way of determining the actual number of businesses that would not pay the employee or the number of employees that would subsequently apply for unemployment compensation. Even though a large number of individuals would be affected by this provision, the Department is assuming the cost to the trust fund is unknown.

FISCAL IMPACT - Small Business

Businesses employing more than 100 workers, would be effected as this proposal requires they provide maternity leave.

FISCAL DESCRIPTION

This bill requires businesses employing more than 100 individuals to provide them with four weeks of paid family leave for the birth of an employee's child or because of the placement of a child with the employee for adoption.

This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.

SOURCES OF INFORMATION

Office of the Attorney General

Department of Labor and Industrial Relations

                                                                                                Mickey Wilson, CPA

                                                                                                Director

                                                                                                February 11, 2008