Calculator estimates Allegheny County parental leave costs
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Allegheny County businesses can figure out how much the county's proposed 18-week parental leave rule would cost them thanks to a new online calculator.
Why it matters: Business groups have bristled at Allegheny County's proposed parental leave rule, saying it would burden small businesses that run on tight margins.
Driving the news: Insurance company Parento launched a calculator this month that estimates the costs of the county's parental leave policy for local businesses.
Zoom in: For a small business with one full-time employee — typically the owner — and nine part-time employees paid $15 an hour, the cost of just one leave for a part-time employee would be $5,400, according to Parento.
- Yes, but: With a federal tax credit, insurance covering parental leave for all 10 employees will cost $5,000 to $6,700 total, according to Parento.
What they're saying: "Most business owners hear '18 weeks at full pay' and assume it's financially out of reach," said Parento head Dirk Doebler. "But when you factor in the tax credit, the turnover savings, and an insurance-backed structure, the real cost is often a fraction of what they expect."
The other side: Allegheny Conference on Community Development CEO Stefani Pashman wrote in a letter to the health department that the proposal as written will hurt the region's competitive edge and burden too many small businesses.
- Matt Napper, the chairman of the board of the Northside Chamber of Commerce, represents 450 businesses and he said at a June public hearing that many of them support parental leave in principle, but don't believe they can afford Allegheny County's version.
Go deeper: The calculator can be found here.
What's next: Allegheny County Council members will discuss the parental leave proposal at a committee meeting on Thursday at 5pm.