Paid Sick Leave: A Guide for Employers
In most of the United States, the answer to the question “Are sick days paid?” is up to the employer. Sick leave pay is a valuable benefit that can boost employee morale and improve the health and productivity of your workforce. Furthermore, it looks excellent in a help wanted ad and can help attract qualified talent. However, paid sick leave isn’t always an optional tool to boost recruitment and draw better talent. In some states, the law requires you to provide all employees with a certain amount of paid sick leave.
As of 2021, fifteen states have laws that mandate paid sick leave for many or all businesses within their borders. These laws have broad similarities but differ in specifics, such as minimum ill time accrual and how employees can use their sick leave.
Understanding sick time laws
Each state has several component elements to the sick leave pay laws. For instance, some laws allow different amounts of sick leave to carry over from one year to the next. Depending on the size of your business, you may even have an exemption from offering sick leave pay.
Exempt and eligible employers
Many states offer temporary or permanent exemptions to accommodate specific industries or help businesses ease into the sick leave program. If these exemptions apply to your business, knowing them can help you save money.
Sick leave pay usage
States regulate the use of paid sick days in different ways. For instance, some entitle employees to use their sick leave to care for any family member, meaning grandparents, parents, and anyone who once held a loco parentis relationship with the worker. Others limit its use to the employee, their spouse, or their children. In some states, such as Oregon, employees may donate their paid sick time to others.
Sick time accrual
You must know how much sick time your employees are entitled to. Some states have laws allowing workers to accrue leave faster or slower than others.
Waiting period
While employees generally accrue an hour of sick leave pay after working a certain number of hours, they’re usually unable to use them immediately. Before the benefit can be used, most sick time laws enforce a waiting period that begins when an employee is hired.
Sick leave pay laws by state
Currently, fifteen states either have sick leave pay laws on the books or are implementing sick pay requirements. As of 2021, you’re only obligated to offer sick leave pay if your business operates in one of the following states:
- Arizona
- California
- Colorado
- Connecticut
- Maine
- Maryland
- Massachusetts
- Michigan
- Nevada
- New Jersey
- New York
- Oregon
- Rhode Island
- Vermont
- Washington
Employers in Washington, D.C., must also offer sick leave pay.
Arizona
Under the Fair Wages and Healthy Families Act, all Arizona employers must provide sick leave pay for employees. However, smaller businesses enjoy some respite through a lower maximum accrual limit for workers.
Employer size also affects the maximum accrual limit. All employees in Arizona accrue one hour of paid sick leave per 30 hours of work, but those who work at a business with fewer than 15 employees can only accrue 24 hours of paid sick leave per year. In larger businesses, employees may accrue up to 40 hours of sick leave pay per year.
Employees begin accruing sick time as soon as they start working, but employers may institute a 90-day waiting period for using sick days. By default, employers must allow their employees to carry over sick time from one year to the next, but employers who front-load time off aren’t subject to this requirement.
Arizonan employees can use their sick leave for mental and physical health conditions and to care for family members.
California
Since California implemented its paid sick leave law in 2015, all employers must provide paid sick leave to employees after 30 days. Once an employee has worked for 90 days, they can begin using their sick time. They earn this sick leave at one hour per 30 hours, and employers can limit maximum accrual and usage.
An employer may limit employees to accruing 48 hours of paid sick leave per year and restrict annual usage to 24 hours. However, employers must allow workers to carry over accrued sick time yearly.
Air carriers are exempt from state sick leave time requirements. Other employers can exempt themselves from state-mandated paid sick leave by forming a collective bargaining agreement with their workforce.
Californian workers can use sick leave when they or family members need medical care. The types of care that the benefit covers include medical treatment, preventive care, and mental recuperation after various traumatic events.
Colorado
The Healthy Families and Workplaces Act of 2021 requires employers with more than 15 employees to offer paid sick leave. However, this requirement will be extended to all employers in 2022. Workers accrue one hour of sick time per 30 hours of work and may use the time as soon as they earn it. Employers can cap accrual at 48 hours, and employees may carry over accrued hours up to this maximum yearly.
Employees may use their sick leave pay for personal health reasons, public health emergencies, and to recover from traumatic events, such as stalking or domestic abuse.
Connecticut
In 2012, Connecticut created the first guaranteed, state-level sick leave law in the United States. It only applies to employers with more than 49 employees, and many aren’t covered by it.
Employees who work an average of less than 10 hours per week are not eligible for sick leave. Employees may only use their accrued sick leave after working 680 hours with an employer. The accrual rate is one hour of sick time per 40 work hours, and the annual carry-over limit is 40 hours.
Connecticut’s paid sick leave benefit can be used for personal health problems and an employee’s spouse and children. Employees may use their sick time for an illness, medical treatment, preventive medical care, mental illness, and when recuperating from domestic violence or sexual assault.
Maine
Under An Act Authorizing Earned Employee Leave, Maine employers with at least ten employees who work more than 120 hours annually must offer paid time off. Seasonal workers don’t factor into this figure. Employees may use their paid leave for any reason, and employers can only deny a request if they have proof of undue hardship. Employees earn one hour of paid leave per 40 hours worked and may accrue up to 40 hours of PTO annually. Employees begin accruing their leave immediately when hired but may only use it after working 120 days with an employer.
Maryland
Workers in Maryland have enjoyed guaranteed sick leave pay since 2018 under the Maryland Healthy Working Families Act. Employers with more than 14 employees must offer paid sick leave to those who work more than 12 hours per week. Employees earn one hour of sick leave per 30 hours, but employers may limit accrual to 40 hours per year and cap accrued sick time at 64 hours. Employees can begin using their paid sick leave after 106 days of employment.
Maryland employees can use their paid sick time personally or when caring for family members. The benefit covers injuries and medical conditions, preventive care, and services for domestic violence and sexual assault. Workers may also use their sick time for parental leave.
Even if you have fewer than 14 employees, you may still have some obligation to offer unpaid leave to certain employees.
Massachusetts
The Earned Sick Time Law mandates that Massachusetts employers with business that have grown to include more than ten employees must provide paid sick leave. Those with fewer than 11 employees must provide unpaid sick leave, except in cases where employees are exempt from the benefit, such as government workers.
Employees earn one hour of paid sick leave per 30 hours of work up to a maximum of 40 hours per year and may carry over that amount from one year to the next. However, the carry-over doesn’t apply if an employee is provided earned sick leave in a lump sum allocation.
While employers begin earning sick leave the first day they work, they may not use it until after their 90th day. The sick leave benefit covers appointments, medical treatment, and recovery from domestic assault and related events for the employee and their family.
Michigan
The Paid Medical Leave Act of 2019 mandates that employers with more than 49 employees provide paid sick leave to non-exempt workers. Employers can offer sick time as a lump sum at the beginning of the year or allow employees to carry over their sick leave from one year to the next. The employees earn sick time at a rate of one hour per 35 hours of work, up to an annual cap of 40 hours.
Michigan’s sick leave pay benefit covers exposure to communicable diseases, public health emergencies, medical care, and recuperation from domestic violence. Employees may use their sick leave personally or to care for a family member.
Nevada
Nevada doesn’t mandate paid sick leave, but it requires many businesses to offer PTO per its paid leave law. The law applies to businesses that have been in operation for over two years and have 50 or more employees. Eligible employees must earn at least 0.01923 hours of paid leave per hour of work, equating to one hour of PTO for slightly more than 52 hours. While employees may use their paid leave at a whim, they must wait until the 90th day of employment, and employers can cap annual usage and carry-over to 40 hours.
New Jersey
New Jersey’s earned sick leave law requires all employers to provide paid sick time. Employees make one hour of sick leave per 30 hours of work and accrue up to 40 hours of sick time annually, which they may carry over yearly. They begin earning sick time immediately but can only use it once they’ve been with their current employer for 120 days.
The benefit covers care for the employee and their family members for medical diagnosis, treatment preventive care, and services for domestic or sexual abuse. Additionally, employees in New Jersey may use their sick time for children’s school-related functions and workplace closures related to public emergencies.
New York
New York’s paid sick leave law from early 2020 is more complicated than most. It describes two tiers of businesses concerning sick leave pay and three tiers of accrual rates and caps. Unused sick time carries over from one year to the next, but it’s only paid if the employer has more than five employees or a net income of more than $1 million.
Employers below those thresholds may cap unpaid sick leave at 40 hours annually, while employers with over 100 employees can cap sick leave pay at 56 hours. Employers that fall between these two metrics may cap paid sick leave at 40 hours annually.
Employees earn one hour of paid sick leave per 30 hours of work and may use it to care for themselves or their family members in the event of injury, for routine care, or when recovering from domestic or sexual violence. There’s no waiting period, and employees may begin using their sick leave pay as soon as they earn it.
Oregon
Oregon’s paid sick leave law requires every employer with over ten employees to provide paid sick time. If the business operates in Portland, they must pay sick leave if they have at least six employees. Exempt businesses must allow their workers unpaid sick time.
Employees accrue sick leave at a rate of one hour per 30 hours of work and can begin using it after their 90th day of employment. The annual accrual cap is 40 hours; Oregonians can carry over up to 40 hours yearly. However, employers can establish an 80-hour cap on accrued sick time.
Oregon employees can use their paid sick leave personally or to care for a family member. It covers the usual conditions such as domestic violence recovery, mental and physical illness, as well as routine and preventive care. However, the law also allows sick leave pay to care for a newborn or infant, and employees may donate their sick time to a coworker if company policy allows it.
Rhode Island
Under the Health and Safe Families and Workplaces Act of 2018, all Rhode Island employers must provide paid or unpaid sick leave. Businesses with 17 employees don’t have to provide sick leave pay, but those with 18 or more employees do. Employees accrue sick leave at a rate of one hour per 35 hours of work up to a cap of 40 hours and may begin using their sick time after 90 days of employment. If a Rhode Island employer doesn’t want employees to take over sick time, they must pay a worker for unused sick leave.
Rhode Island’s sick leave law entitles employees to use their sick days to seek care for injuries, stay home when ill, care for family members, or recuperate from domestic violence.
Vermont
Since Vermont implemented its paid sick leave law in 2017, all employers in the state must offer paid sick time. Besides government employees, the only exception is for employees who work for fewer than 18 hours per week on average. The benefit covers absences relating to public health emergencies, medical treatment, preventive care, and domestic violence. An employee accrues one hour of paid sick leave for every 52 work hours up to an employer-optional cap of 40 hours. They can carry 40 hours of paid sick leave from one year to the next unless the company offers paid sick leave in a lump sum.
Washington
Washington’s paid sick leave law requires all employers to offer paid sick time, except for specific employees exempted from the benefit. Eligible employees earn one hour of paid sick leave per 40 work hours, with no accrual cap, and up to 40 hours of carry-over from one year to the next.
While employees begin earning sick leave immediately, they can’t use it until they’ve been with a company for 90 days. The sick time benefit covers diagnosis, treatment, preventive care, and leave for domestic violence for workers and their family members.
Washington D.C.
All employers in Washington, D.C., must provide sick leave pay in accordance with the Accrued Sick and Safe Leave Act of 2008. The law defines three business size tiers subject to different requirements.
Employers with fewer than 25 employees must provide one hour of paid sick leave per 87 work hours, with a maximum annual accrual of 24 hours. Businesses with 25-99 employees must provide one hour of paid sick time per 43 work hours, with a maximum accrual of 40 hours per year. Employers with over 99 employees must provide one hour of paid sick leave per 37 work hours, with an annual accrual limit of 56 hours. Employees may carry over their unused sick time from year to year.
The paid sick time benefit applies to illnesses, medical appointments, and recovery from sexual abuse and domestic violence. Employees may use their time personally or to care for family members.
FAQs
IRS' FAQ: Special Issues for Employees
Families First Coronavirus Response Act (FFCRA)
Department of Labor Families First Coronavirus Response Act (FFCRA) Frequently Asked Questions
Also See
A Guide To Collecting Unemployment When You're Self-Employed