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BUSINESS Saturday 4 auguSt 2018
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Paid sick leave may be incentive, complication at businesses

By JOYCE M. ROSENBERG ally Democratic areas. The
Associated Press states are Arizona, Califor-
NEW YORK (AP) — Rod Hol- nia, Connecticut, Mary-
mes opted for simplicity land, Massachusetts, New
when Chicago's paid sick Jersey, Oregon, Rhode Is-
leave law took effect. land, Vermont and Wash-
He wanted to avoid the ington. Cities with laws
headache of calculating include Chicago, Los An-
how much sick time staff- geles, Minneapolis, New
ers at his digital market- York, Philadelphia, Pitts-
ing company earned for burgh, Seattle and Wash-
the time they worked, and ington, D.C.
there was the question of While paid sick leave is be-
what do about his employ- coming more prevalent,
ees in Cincinnati. some owners balk at the
Holmes had previously giv- laws, says Tim Garrett, an
en his staffers three weeks employment attorney with
of paid time off, to be used Bass Berry Sims in Nashville,
for whatever they wanted. Tennessee.
But with the law requir- "They don't appreciate the
ing sick leave, he added government telling them
a week of sick time for all what to do," Garrett says.
14 staffers. It increases his "They say, 'I want to do this
costs, but he wants to re- because it's what's best for
tain employees and attract my business.'"
new ones. In this Monday, July 30, 2018, photo, Rod Holmes works at his business Chicago Style SEO in It can be complicated to
"We're in a fairly competi- Chicago. comply with the laws, which
tive market for people, and Associated Press can affect companies lo-
that was the deciding fac- complying with the laws. workers at U.S. companies pay for sick leave by delay- cated outside a state's or
tor," says Holmes, co-owner And, if they have staffers had paid sick leave, up ing eligibility for Social Se- city's borders. Some require
of Chicago Style SEO. who do shift work, they of- from 61 percent in 2015. curity based on how much sick leave to be granted to
ten must pay substitutes The issue of paid sick leave sick time they've taken. workers who are tempo-
Running a small business when someone is sick. has been raised in Con- Separately, a GOP-spon- rarily within a jurisdiction,
can be more expensive Despite those complica- gress, although a federal sored bill in the House including employees on
and complex for own- tions, the trend in the U.S. law doesn't appear likely in would allow companies to business trips or truck drivers
ers subject to the growing is toward more companies the near future. At a Senate be exempt from state and making deliveries.
number of state and local offering paid sick leave, hearing in July, lawmakers local sick leave laws if they Dan Turner steers clear of
laws that mandate paid either because of the laws split along party lines over offer staffers flexible sched- places with laws more com-
sick time. Owners with far- in 10 states and many big how to pay for the time off. uling. plex than what's required in
flung staffers like Holmes cities or because employ- Democrats favor a law that Most of the state and local Washington, D.C., where
must decide how much ers recognize it's a benefit would be funded through laws, which allow workers his information technology
sick leave to give all their staffers want. The Labor tax increases on employers to accrue sick leave based firm, TCG, is located. q
workers. They also have Department estimated last and workers. Republicans on the number of hours
the administrative costs of year that 68 percent of want workers to effectively they work, are in tradition-

Earnings roundup: 2Q profit growth

even better than expected

By The Associated Press The big profit gains are an sults have been, though,
NEW YORK (AP) — Inves- encouraging sign to inves- concerns still hover. For in-
tors came into this earnings tors because stock prices stance, Facebook warned
season with high expec- tend to track with profits its revenue growth will slow
tations. They weren't high over the long term. Inves- in upcoming quarters, and
enough. tors are also optimistic be- the stock lost a record $119
Companies in the S&P 500 cause the gains aren't sole- billion in value in one day.
are on track to deliver earn- ly the result of lower taxes. It's part of a larger concern
ings-per-share growth of Revenue has been stron- that this may be as good
24 percent for the second ger than expected for most as it gets when it comes
quarter. When the quarter companies, which means to profit gains. Analysts ex-
started in April, Wall Street that bottom-line growth pect profit growth to slow This June 25, 2018 file photo shows the New York Stock Ex-
change in New York.
was expecting a 19 per- isn't coming from just cost- in 2019, when companies Associated Press
cent jump, according to cutting or from the Trump won't see the same big de-
FactSet. So far, about three administration's reduction clines in tax rates that they conference calls following slower times could be
quarters of the companies to the corporate tax rate. did this year. their earnings reports, as of ahead for stocks. The S&P
in the index have reported. Apple, for example, sold Plus, companies are girding July 25. A year earlier, be- 500 tends to be weak in
If the current pace holds, more iPhones and iPads for the potential pain that fore the trade-war worries the six months following a
it would mark the sec- than a year earlier, and a global trade war could first flared, just five compa- peak in earnings growth,
ond straight quarter that at higher average selling wreak. Seventy companies nies did so. say strategists at RBC Capi-
growth has been close to prices. in the S&P 500 mentioned If this does end up being a tal Markets.q
25 percent. As impressive as the re- the word "tariffs" in their peak for earnings growth,