The document discusses paid sick leave compliance and best practices for employers. It provides an overview of the expansion of paid sick leave laws from one state and seven jurisdictions in 2014 to three states and eighteen jurisdictions currently. It reviews the key details and requirements of paid sick leave laws in states like California, Connecticut, and Massachusetts as well as various cities. These include eligibility, accrual, usage limits, family definitions, and certification processes. The document also discusses challenges employers face in managing paid sick leave and provides resources for continued compliance.
Perry Lieber Your Trusted Guide in the Dynamic World of Real Estate Investments
Paid Sick Leave Compliance and Employer Best Practices
1. Keeping Up with Paid Sick Leave
Compliance and Employer Best Practices
April 2015
2. 2
Agenda
Introductions and Goals
Where We Were Last Year
What’s Changed Since Then
The Gory Details
How Employers Are Managing Paid Sick Leave
3. 3
Introduction and Goals
Introduction
Geoff Simpson, Director, Sales and Marketing, Presagia
Michael Soltis, JD, LLM, Office Managing Shareholder and
Litigation Manager, Jackson Lewis PC
Teri Weber, Partner and Senior Consultant, Spring
Consulting Group LLC
4. 4
Where We Were Last Year
One State Paid Sick Leave (Connecticut)
Seven Paid Sick Leave Jurisdictions (Washington, DC,
Jersey City, Newark, New York City, Portland, San
Francisco, and Seattle)
One hotel specific ordinance in Los Angeles (October 2014)
8. 8
What’s Changed Since Then
Paid Sick Leave has continued to expand
From one state to three states (California, Connecticut,
Massachusetts)
From seven jurisdictions to eighteen; many in CA and NJ
― Bloomfield, NJ
― East Orange, NJ
― Eugene, OR
― Irvington, NJ
― Jersey City, NJ
― Montclair, NJ
― Newark, NJ
― New York, NY
― Oakland, CA
― Patterson, NJ
― Portland, OR
Leave Map
― Passaic, NJ
― Philadelphia, PA
― San Francisco, CA
― Seattle, WA
― Tacoma, WA
― Trenton, NJ
― Washington, DC
― Los Angeles (hotel specific)
― Long Beach (hotel specific)
― San Diego, CA (on hold; vote in June 2016)
9. 9
Why This Is An Issue
According to 2014 BLS Statistics:
65% civilian workers have Paid Sick Leave
However, break it down and….
52 percent of workers in small establishments have (<100)
72 percent in medium and large establishments have (>100)
This means that over 40 million workers
have no paid sick leave!
11. 11
Why This Is An Issue
1993 – Family and Medical Leave Act had gaps that
needed to be filled:
Lacked pay for leave
Required specific conditions be proven for sick leave
2004 – Healthy Families Act – Rep. Rosa DeLauro (‘05,
‘07, ’09, ‘11, ’13)
2004 – The Balancing Act – Rep. Lynn Woolsey (‘05,
‘07, ’09, ’11)
In his 2015 State of the Union, Obama stated: “Send
me a bill that gives every worker in America the
opportunity to earn seven days of paid sick leave.”
12. 12
The Gory Details
State Level
Three states have paid sick time laws (CA, CT and MA)
CA: Passed by the legislature on August 29, 2014. The
Governor signed it into law on September 9, 2014 and the law
will take effect in July 2015
CT: Signed by the Governor July 1, 2011. The law was
effective January 1, 2012
MA: Statewide ballot was approved on November 4, 2014.
The law will take effect July 1, 2015
Paid Sick Leave is separate and distinct from Paid Family Leave available in
California, New Jersey and Rhode Island. These leaves may overlap or have
similar parameters.
13. 13
The Gory Details
State Level - Entitlement
California offers up to 24 hours a year (1 hour for every
30 hours worked) to workers employed in CA for 30 or
more days within a year
In-home supportive care and flight deck/cabin crews are exempt
Employer under a CBA may be exempt
Connecticut offers up to 40 hours a year (1 hour for
every 40 hours worked) to hourly workers working for a
business with 50 or more employees
Manufacturers and one nationally chartered non-profit as well as
temporary and day laborers
Massachusetts offers up to 40 hours a year (1 hour for
every 30 hours worked) to workers employed in MA
Businesses with fewer than 11 workers receive only unpaid
sick time
14. 14
The Gory Details
State Level - Eligibility
Accrual begins at commencement of employment
In CA, time cannot be used until 90th day of employment
In CT, time cannot be used until the 680th hour of employment
In MA, time cannot be used until the 90th calendar day of
employment
All three states allow the time to be used to care for
children and spouses
CA and MA also allow for parents and parents of a spouse
CA extend the definitions further to include grandchildren/
grandparents and siblings
All states allow time to be used for domestic violence with CT also referencing
sexual assault and CA expanding further to reference public health emergencies.
15. 15
The Gory Details
State Level - Carryover
All states have a layer of requirements for carryover
Employers in CA and CT are able to avoid the carryover
requirements if they provide “full” paid sick entitlement at the
start of the year
California Connecticut Massachusetts
Carryover requirement All unused time Up to 40 hours Up to 40 hours
Maximum accrual 48 hours/year 40 hours/year 40 hours/year
Usage limit per year 24 hours/year 40 hours/year 40 hours/year
If an employee is rehired in CA within 12 months, they are entitled to sick time
available at the time of separation unless paid out.
In MA, if an employee misses time but arranges to make up the time within the
pay period, the employee does not need to use accrued sick.
16. 16
The Gory Details
State Level - Notice
Employers must provide some degree of notice in all
states
CT references an individual notice or posting of employee
rights
MA references an individual notice as well as posting of
employee rights
CA adds a layer of complexity by requiring employees to
inform employees of hours available on their wage payment
Employee Notice
California Connecticut Massachusetts
Foreseeable Leave “Reasonable” 7 day notice “Good Faith Effort…”
Unforeseeable Leave As soon as practical As soon as practical No Provision
17. 17
The Gory Details
State Level - Certification
Certification requirements for paid sick leave are vague
CA lacks a certification provision except to say the employer
may require the employee to provide a written certification
verifying time was used for the intended purpose
CT and MA allow for certification if 3 consecutive workdays
are missed
18. 18
Covered Employers
All employers: San Francisco, NJ cities (with limited
exceptions), Washington, D.C., Portland
Employers with 50+ in-state employees (CT); 5 or
more employees (NYC)
Tiered number of employees: larger employers must
provide paid leave; smaller provide unpaid leave
(Portland, OR)
19. 19
Eligible Employees
Based on actual time worked in the city per year:
“Occasional” workers who work 240+ hrs/yr in the city
(Seattle, Portland)
80+ hrs/yr in city (NYC and New Jersey cities)
30 days working in CA
2 hours in one week in calendar year (San Diego,
Oakland)
Relative time worked in the city: Employees must
either spend at least half of their time in D.C. or are
based in D.C., and don’t spend more than half of
their time working elsewhere
Only non-exempt “service workers,” those within 64
BLS classifications (CT)
20. 20
Accrual Rules
Accrual Rate:
Majority: 1 hr/30 hours worked (1/30)
Others: 1/40 (CT); tiered rates based on employer size (the
more employees, the lower the number of hours to accrue
an hour)
When does accrual begin and when can it be used?
Majority rule: date of hire/after 90 days of employment
Others: use after 120 days (NYC); 180 days (SEA); 680 hrs
(CT)
Max accrual/annual cap
Majority rule: 40 per year
Others: San Francisco, Oakland (72); size based maximums
21. 21
Family Member Definitions
Siblings, grandparents, grandchild
Siblings in law, “committed relationships” - D.C.
Domestic partner – New York City and Portland, OR.
Spouse, civil union partner or domestic partner of
grandparent – NJ cities
A person to be named annually if no spouse or
domestic partner (SF0, Oakland)
22. 22
Reasons for Leave Beyond the “Usual”
Domestic violence, sexual assault, stalking: MA, D.C.,
Seattle, CA, CT, Portland, Eugene
Public health emergency at work or a child’s school:
Seattle, NYC, Jersey City, Portland, NJ cities
Death of a family member (Tacoma, WA)
23. 23
Carryover Requirements
Majority rule: All accrued but unused time
Others:
All unless paid out at year end – NJ cities (with certain
exceptions in Jersey City)
All unless employer frontloads the annual requirement
(Portland, OR, CT, SEA, CA)
Up to 40 hours, unless employer pays out at year end
AND frontloads the annual maximum accrual (NYC)
24. 24
Sick Leave Abuse
Portland, OR Protected Sick Time Ordinance defines it
as “repeated use of unscheduled sick time on or
adjacent to weekends, holidays, vacation, or pay day,
regardless of the number of consecutive days.”
The San Francisco Paid Sick Leave Ordinance defines a
“pattern of suspected abuse” by providing examples
such as an absence when an employee’s vacation
request was denied; when an employee is scheduled
for an undesirable shift; and on Mondays or Fridays
or days following a holiday.
25. 25
Where the Wild Things Are!
Determining pay rate for those on other than hourly
programs
Does “child” include adult child and, if so, under what
circumstances?
Bereavement leave creates “womb to tomb” leave
coverage
Adjunct professors in Philly need a better lobbyist
Providing notice every payroll period
26. 26
Where the Wild Things Are!
Requesting personal certification for each use of PSL
Government certification that current policy satisfies
PSL law
PSL is a floor for leave, not a ceiling
Integrating PSL with other leave laws and paid leave
programs such as STD and workers compensation
Think more! All PSL laws encourage employers to
provide more PSL than required!
27. 27
How Are Employers Managing
Employers in this room are likely managing very well
compared to others; awareness is critical
A good place to start: sign up for advisor/vendor blogs
The difficult part: actually reading them
Recently most employers have been in a reactionary
position; a pro-active approach is best
A good place to start: set ownership at your firm, consider
your structure and how you want these types of absences
managed
The difficult part: controlling communications and setting
policies
28. 28
How Are Employers Managing
Some view paid sick as an outlier to their program; one-
offs will not work long term
A good place to start: consider sick leave as part of your
integrated program
― Durations are short but this data will support your overall health and
productivity initiatives
― Accruals can be tricky…but consider your options
― If our core integrated providers will not manage accruals, other options
exist but there are trade offs
The difficult part: Changing behavior of employees,
supervisors and HR
― Set some visions for where you want to be in 5 years knowing the
landscape WILL change
31. 31
Teri Weber, ACI
Partner
teri.weber@springgroup.com
Mike Soltis, JD, LLM
Managing Partner and Litigation Manager
soltism@jacksonlewis.com
Geoffrey Simpson
Director, Sales and Marketing
gsimpson@presagia.com
Thank You
Send us an email for a copy of the 2015 Paid Sick Leave Grid!
Notes de l'éditeur
128 million civilian workers – 109M private, 19M government
61% all private industry have = 66M workers
89% gov’t have = 17M workers
Center for Economic and policy Research - Contagion Nation: A Comparison of Paid Sick Day Policies in 22 Countries
In order to enable accurate comparisons of the benefits available to workers
across countries with different numbers of days, weeks, or months of paid time off,
as well as different wage replacement rates during this time, we standardize
leave duration by calculating the full-time equivalent (FTE) number of days
available to workers in each country. In short, the amount of full-time equivalent
paid sick days and leave is calculated as the number of days of paid time off
multiplied by the wage replacement rate, or the percentage of total wage or
salary that the worker is paid during his or her absence from work. For example,
if a country requires employers to compensate sick workers with full pay for
5 days, the full-time equivalent duration of leave would be 5 days. If a country
withholds payment for the first day, but mandates that the following 4 days
be compensated at 100 percent, then the full-time equivalent duration would be
4 days. If 70 percent of pay is guaranteed for 5 days, then the number of FTE
sick days would be 3.5
2004 – Healthy Families Act – Rep. Rosa DeLauro
First introduced to Congress in 2004 and then ‘05, ‘07, ’09, ‘11, ‘13
Would allow workers to accrue up to 7 days paid sick leave annually
Would provide 30 million additional workers access to paid leave
2004 – The Balancing Act – Rep. Lynn Woolsey
First introduced to Congress in 2004 and then ‘05, ‘07, ’09, ‘11
Expand FMLA to offer paid leave
Add new definitions for covered reasons
Lower the employer eligibility requirements to 15+ employees
Seattle: An employee who is not covered by the Ordinance is still included in any determination of the size of the employer.
Seattle: "Full-time equivalent" shall mean the number of hours worked for compensation that add up to one full-time employee, based either on an eight-hour day and a five-day week or as full-time is defined, in writing or in practice, by the employer.”