A new proposal in the Nevada Legislature seeks to expand paid family and medical leave for workers.
While the idea may sound good on paper, the reality is far different. This is yet another unfunded government mandate that will force businesses—particularly small businesses—to pay employees who aren’t working.
And when businesses are forced to shoulder extra costs without any assistance, the consequences can be devastating.
What’s Being Proposed?
Assemblywoman Selena La Rue Hatch, a Democrat from Reno, is pushing for new legislation that would require businesses to provide paid leave for employees who need time off for major life events. This includes time off for having a baby, adopting a child, dealing with serious health issues, fulfilling military duties, or escaping domestic violence.
La Rue Hatch says the idea came from talking to constituents who struggled to care for their health or family without losing their paycheck.
Currently, federal law allows workers to take unpaid leave under the Family and Medical Leave Act (FMLA), but this proposal would require businesses to provide paid leave. While the exact details, such as the number of weeks and percentage of pay covered, are still being worked out, La Rue Hatch says she wants the amount to be “meaningful.”
Who Pays for This?
This is where the problem begins.
The government isn’t offering to pay for this new requirement. Instead, it’s forcing businesses to cover the costs out of their own pockets. That’s what’s known as an unfunded mandate—when the government requires businesses to do something but doesn’t provide any funding to do it.
For large corporations, this might not seem like a big deal. They have thousands of employees and big budgets, so they can absorb the costs more easily.
But for small businesses, it’s a different story. Many of them operate on tight margins, where every dollar counts. If they suddenly have to pay workers who aren’t working, they’ll have to make tough choices—such as raising prices, cutting hours, or even laying off employees.
How Small Businesses Will Suffer
Small businesses don’t have the same resources as major corporations.
If an employee goes on paid leave, small business owners may have to hire a temporary replacement, which is another added cost. Even worse, if the business can’t afford to hire a replacement, other employees will have to pick up the extra workload, leading to burnout and decreased productivity.
For example, a family-owned restaurant with ten employees could struggle if a key worker takes several weeks of paid leave. The owner might have to cover shifts personally, pay overtime to other workers, or cut back on services.
These added costs can push small businesses to the brink. Some might be forced to shut their doors for good. Others might stop hiring new workers altogether, making it even harder for Nevadans to find jobs.
Is This the Right Approach?
Supporters of paid family leave argue that it helps workers and their families, leading to greater job satisfaction and long-term employee retention. Progressive and labor groups strongly back the measure.
But the reality is that businesses already offer paid leave when they can afford it. Many successful companies voluntarily provide benefits because it helps attract and retain workers.
However, forcing every business—no matter its size or financial situation—to provide paid leave is a one-size-fits-all approach that ignores economic realities.
This is exactly why Gov. Joe Lombardo vetoed a similar bill in 2023. He understood that mandates like this make Nevada less attractive to businesses.
Officials with the Governor’s Office of Economic Development have already warned that the state is facing challenges in attracting new businesses due to previous paid leave laws. If more mandates like this are passed, Nevada could lose jobs and investment to states with a more business-friendly climate.
Finding a Better Solution
If lawmakers truly want to help families, they should look for solutions that don’t burden small businesses.
One option would be creating tax incentives for businesses that voluntarily offer paid leave, rather than forcing it on everyone. Another idea would be a state-run paid leave program, similar to unemployment insurance, where workers and employers contribute to a fund that covers leave when needed.
Whatever the solution, it shouldn’t involve punishing the small businesses that drive Nevada’s economy. Government should be making it easier to start and grow businesses—not harder.
While expanding paid family and medical leave might sound compassionate, forcing businesses to pay for it without any support is unfair and dangerous. This proposal is just another example of government overreach that ignores the struggles of small businesses.
Nevada lawmakers should focus on policies that encourage job growth, not policies that could drive businesses out of the state. If the goal is to help families, let’s find a way to do it that doesn’t put their jobs and local businesses at risk.
The opinions expressed by contributors are their own and do not necessarily represent the views of Nevada News & Views. This article was written with the assistance of AI. Please verify information and consult additional sources as needed.
