Local Governments Can’t Mandate Employee Benefits

H.3431 would prohibit any political subdivisions of the state (any form of local government) from requiring employers to provide any form of employee benefits. Employee benefits are defined as “anything of value that an employee may receive from an employer in addition to wages”.

Employee benefits are simply another form of compensation, and as SCPC has previously explained mandating the increase of certain forms of compensation will cause employers to either restrict hiring (either overall or among certain groups) or to reduce other forms of employee compensation.

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