Hartford Business Journal

24 Hartford Business Journal • March 23, 2020 • www.HartfordBusiness.com OPINION & COMMENTARY EDITOR'S TAKE A few rambling thoughts to explain the unexplainable T hree weeks ago I wasn't taking the coronavirus very seriously. I was washing my hands more than usual, but in terms of the virus impacting my everyday life, I didn't think much about it. A few business leaders I talked to felt the same way. We even shook hands together. Then, the week of March 9th came and things changed. Heck, the nation changed. One by one major sporting events and leagues were can- celled and states began taking unprecedented steps to slow the spread of the virus, including closing schools and other public gathering places like restaurants, bars, gyms and casinos. Soon, Connecticut followed suit. Hartford Business Journal adopted a work-from-home policy and nearly every employee complied. In fact, as I was writing this column I was the only person in the office. Downtown Hartford feels like a ghost town. Hartford didn't need this, nor did the state or region. There have been lots of opinions about what impact coronavirus will ultimately have on the economy. Truthfully, even the smartest business and government leaders and economists don't know, but I think it's safe to say we are headed into a major recession. In fact, we are likely in one right now. How long and severe it will be is anyone's guess, but I've personally never seen so much economic dis- ruption in such a short period of time. Within a few days, starting March 13, Connecticut saw more than 30,000 residents file for first-time unemployment benefits. That's an ominous sign. There have been projections three millions U.S. jobs could be lost by sum- mer and the unemployment rate (currently 3.5%) could double in a year. Connecticut needs a strong response from the federal government to help both businesses and individuals. It's also important for state lawmakers to pass their own stimulus program. Some measures have already been taken on the federal and state levels. Ironically, I was very critical of former Gov. Dannel P. Malloy's poli- cies of giving businesses loans and grants to encourage job creation and preservation, but I think we will need to revert back to that approach, at least in the short term. Connecticut's economy was lagging before coronavirus hit (we lost 3,300 jobs in 2019), and it will need a major jumpstart in COVID-19's wake. Local banks must also step up and work with borrowers. Meantime, business leaders and owners must show patience in the weeks and months ahead with various constituencies, including workers, customers, suppliers, etc. These are likely to be tough times for everyone. Our publisher Joe Zwiebel has been using the tagline, "We are all in this together." I think it's appropriate given the major challenges companies of all stripes are facing, whether it's a loss of customers or workers. If this column seemed a bit rambling and unfocused you're right. Try- ing to explain the unexplainable is an arduous task and I've been leading a news team that's put in long hours in recent weeks to give our readers as much information and analysis on the coronavirus' impact as possible. If anything, this episode has shown the importance of reliable, local news coverage. In the meantime, all we can do for now is soldier on and roll with the punches. Better days are ahead, if your business can get there. Greg Bordonaro, Editor OTHER VOICES Paid family medical leave a good thing for all employers By Carmina Hirsch I 've run a small law practice here in Connecticut since 2013 and I currently employ two employees. Like any small business in our state, every single person at my business has a significant role and we are all essential. As a small business owner, I see firsthand everyday how my success is inextricably linked to the wellbeing of my staff. That's why I joined more than 90 small businesses across the state last year in supporting the passage of one of the strongest paid family and medi- cal leave (PFML) programs in the country, and why I firmly dis- agree with Greg Bordonaro's March 9 edito- rial "Employer concerns about paid family medical leave are real." No matter how much we take care of ourselves, we never know when we'll face an unexpected health crisis. An elderly parent might have an accident and need surgery. A spouse or a loved one may be diagnosed with cancer. The need to take time away from work to care or recover is inevitable; however, the majority of workers in our state and across the country lack access to even a day of job- protected paid family and medical leave. For small employers, offering a generous paid leave benefit on our own is often too expensive. Public Act 19-25 creates a PFML system funded solely by employee payroll contributions. Employers like me will contribute $0 into the pro- gram. In 2017, a poll by BLS Research & Consulting indicated 77% of small businesses in Connecticut support paid leave legislation that is funded entirely by employees. The law also mirrors legislation previously ap- proved by each of our neighboring states that include businesses of all sizes. PFML allows small businesses like mine to compete for talent with larger firms and corporations. Research shows that PFML also increases worker retention and productivity, which improves our bottom line. PFML levels the playing field for us to retain our employees, which reduces expensive turnover costs that often amount to one-fifth of a worker's annual salary. After more than a decade of PFML in California, the majority of busi- nesses (87%) report no increased costs as a result of the program. Small businesses (those with fewer than 50 employees) in California specifically reported more positive outcomes than large businesses. Right now, workers at businesses of all sizes need to take time away from work because they're sick, or need to take care of a loved one. Right now, employers just like me find a way to make these situations work, often right from our own pockets or bottom lines. Connecticut lawmakers made the right decision in including business- es of all sizes in the state's new paid family and medical leave program. Rather than focus valuable time and resources on attempts to weaken the law, I encourage businesses to educate their peers on its impor- tance and ensure that all employees and employers are prepared for benefits to begin in 2022. Carmina Hirsch is the owner and principal of Hirsch Legal LLC, a family and divorce lawyer based in Shelton. Carmina Hirsch

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