Employer mandates are a one-size-fits-all, counterproductive approach.
State and local actions requiring employers to provide certain benefits that exceed federal standards create a confusing patchwork of employee benefit requirements. Moreover, these one-size-fits-all approaches fail to account for the higher-than-average pay and benefits packages offered to employees by professional services businesses.
Competitive pay and benefit packages are critical to the professional service industry's success: recruiting and retaining highly talented individuals from all segments of society is an integral part of professional services firms’ core strategy, and employers cannot compete for talent without addressing pay equity, paid leave, and other human resource policy issues. Mandates on employers restrict an employer’s ability to negotiate benefits with employees, and when mandates are implemented, employees may actually experience a reduction in benefits, making these mandates ineffective and counterproductive.
At minimum, any mandate legislation considered should exempt small businesses. Employer mandates are an expensive constraint for many employers. Some smaller and newer businesses can’t afford a costly new mandated beneﬁt. As a result, they will either reduce pay or cut jobs.