SHRM Member Testifies Before California State Assembly

SHRM member Patricia Leyva, senior human resources manager at the Native American Health Center in Oakland, Calif., testified March 17 in support of California Assembly Bill 386, which would provide a tax incentive for businesses that contribute to their employees’ student loan payments, offering a voluntary dollar-for-dollar tax credit of up to $3,000 per full-time employee annually.

The program would be capped at $25 million and would prioritize small- to medium-sized businesses, as well as businesses that are owned by veterans, women, minorities, or people with disabilities. Both SHRM and SHRM California support the legislation. 

The timely introduction of AB 386 comes as more employers seek ways to manage employees’ financial stress — including massive amounts of student loan debt — while also looking to improve retention and attraction. Student debt saddles employees to the tune of a collective $1.77 trillion, according to the Federal Reserve. Meanwhile, Californians carry more student loan debt than the national average, with an average debt of over $38,100 per borrower.

“Workforce challenges require workforce solutions. As HR professionals, we know that attracting and retaining talent takes more than just competitive pay,” Leyva told the California Assembly Committee on Revenue and Taxation. “Employers need meaningful benefits that support their workforce and help them remain competitive in California’s high-cost job market.”

AB 386 provides “a much-needed incentive for California employers to invest in their workforce by supporting student loan repayment assistance,” Leyva said.

To watch the hearing or read her testimony, please visit SHRM’s website.