Small Business Owners Facing Crushing Costs from Mandatory Sick Days

Paid sick days have quickly become one of the biggest new payroll expenses for small businesses in British Colombia (BC). Since January 1, 2022, employers are required to provide every employee with five paid sick days per year, starting from their first day on the job. Unlike other provinces where sick days accumulate gradually, BC’s rules mean businesses must cover the full cost upfront. To make matters worse, Bill 11 removes the need for employees to provide a doctor's note, increasing the risk of misuse.  

Here’s a breakdown of what mandatory paid sick days could cost a business per employee: 

How are small businesses impacted?  

A lot of owners are telling us they simply can’t afford to hire new staff when payroll costs keep rising.  Many see this as a hidden tax on jobs that drives up costs and slows hiring.  

One local nursery owner shared how frustrating this can be, telling us about an employee who quit just before summer after using all five sick days at the end, leaving the business to cover wages for days not worked. These extra costs don’t just squeeze tight budgets, they also make it tougher to bring on new staff because when someone is hired, the business owner needs to plan to pay for five sick days right away.  

How do we support small businesses?  

In our petition – My Business Can’t Afford 10 Paid Sick Days! - we’re calling on the BC government to update the paid sick day rules, and we’ve already gathered over 8,000 signatures in support. We believe sick days should be earned gradually, rather than being given immediately after starting employment. At the same time, we’re asking for clear limits on when employers can request a sick note, for instance, only if there’s a valid concern about misuse, or for practical alternatives to verify absences. To help with these added expenses, we’re also urging the government to offer financial support, such as tax credits or direct funding to small businesses. 

Beyond the petition, we’re talking directly with government officials and spreading the word about how these rules are making things tougher for small businesses. We’re also preparing suggestions for BC’s Ease of Doing Business Review to help make real improvements.  

Would this type of advocacy help your small business? Become a CFIB member today to get support from experienced advocates for your business.