MADISON, Wis. -- A controversial sick leave proposal was shot down by the Madison Common Council after a session that went until 3 a.m. Wednesday.

After four hours of discussion and debate, the council voted against the ordinance by a margin of 10-9, WISC-TV reported.

The proposal would have required all businesses in the city with five or more employees to pay for workers' sick leave. The new policy would have allowed employees to get one hour of sick leave for every 50 hours that they've worked as long as the employee typically worked more than 18 hours a week. In year two and beyond, employees would have accrued one hour of sick pay for every 30 hours worked.

Had the measure passed, Madison would have been the first city in the nation with mandatory sick leave.

Supporters said that the ordinance is a necessity for low-income workers, but business owners have criticized the measure, saying that they can't afford to pay for employees who abuse the system, WISC-TV reported.

Many in the local business community, led by the Greater Madison Chamber of Commerce, have lobbied against the proposal, arguing that it would unfairly increase the cost of business. Some business owners said that they would have to cut vacation, wages and possibly jobs if the proposal became law.

Supporters of the ordinance were fired up after a rally began at 6 p.m. on Tuesday. The event was organized by the Healthy Families, Healthy City Campaign. After rallying, the group marched indoors and became some of the more than 100 people who spoke on the topic before the council, WISC-TV reported.

The discussion went back and forth for most of the night as supporters painted a picture of an easy, no-nonsense "yes" vote. They said that mandatory sick leave is necessary, like a minimum wage law, WISC-TV reported.

"It's not courageous. It's just right. You all know that," said Elaine DeSmidt.

"Somebody had to have the vision. Someone had to take the lead and go first. Tonight, that's your opportunity," said Richard Russell.

Opponents painted a different picture for the council. They said a "yes" vote would hurt small businesses, and create a void that would allow larger corporations to move in.

"(Large businesses) realize that mandates like this are a death by a thousand cuts," says Madison Top Company owner Russ Frank. "And when all the lifeblood is drained out of small business, they will move in."

When the final vote was tallied, some small business owners celebrated.

"We're very pleased and very grateful to those alders that voted no," said Jennifer Alexander, president of the Greater Madison Chamber of Commerce. "This highlights what happens when small business gets active, gets involved and comes out to tell their story."

Some supporters of the proposal said that they felt hurt by the council's vote.

"I think the council has clearly demonstrated they have not listened to the majority of the Madison residents who have sent in a flood of e-mails in support, calls in support," said Vicky Selkowe, who is a member of the Healthy Familes, Healthy City Campaign.

The ordinance was recommended by the city's Equal Opportunities Commission and the Board of Estimates, but rejected by the Economic Development Commission and the Health Board.

Stay tuned to WISC-TV and Channel 3000 for continuing coverage.