By Mark Holloway, J.D., Compliance Services, Lockton Benefit Group
The Connecticut legislature has passed an act mandating that employers provide minimum levels of paid sick leave to hourly-paid service workers, beginning next year. The Governor is expected to sign the measure.
While many employers provide paid sick leave as a fringe benefit, the law will make Connecticut the first state to require businesses to provide paid sick leave to workers. The District of Columbia and City of San Francisco have similar requirements.
The new law will require employers to provide paid sick leave for the illness, injury and medical care (including preventive care) of the employee, the employee's spouse (including a same-sex spouse), children under age 18, and disabled children (regardless of age). Paid sick leave also applies to absences related to domestic violence and sexual assaults.
Due to some last minute compromises in the legislation, the final version of the bill contains exceptions that will limit the law's application. That being said, the new law will likely be viewed as a nuisance by covered employers who will now need to track sick leave accruals.
Which Employers Are Subject to the New Rules?
The law applies to any employer that employed at least 50 individuals in Connecticut in any one quarter of the previous calendar year. The determination is made annually on January 1.
However, the law contains an important exemption for manufacturing firms, as well as some nationally chartered tax-exempt organizations, such as the YMCA.
Which Employees Accrue Paid Sick Leave?
The right to paid sick leave only applies to hourly-paid employees who are not exempt from overtime and who meet the definition of "service worker." The law provides a laundry list of "service worker" professions, encompassing most service jobs in the hospitality, health care, office, personal service and retail industries. The bill exempts day or temporary workers (defined to mean individuals who work on a per diem or irregular basis).
The law requires paid sick leave for "service workers in the state." Regulators will need to determine how the law applies to individuals who work both in Connecticut as well as surrounding states.
Employees accrue paid sick leave in one hour increments, for each 40 hours worked up to 40 hours per year, beginning on Jan. 1, 2012, with a carry forward of up to 40 hours to the following year. Significantly, the employer is not required to "cash out" unused sick leave for employees who terminate employment.
Employers that provide other forms of paid leave, such as vacation or paid time-off (PTO), that accrues at rates equal to or greater than the law's requirements are deemed to be in compliance, provided the paid leave can be used for the same purposes specified in the law. Collective bargaining agreements in effect before Jan. 1, 2012 are unaffected by the law's requirements.
When Can Employees Access Sick Leave?
Employees can access paid sick leave after completing 680 hours of employment after Jan. 1, 2012 (or 680 hours after the date of employment, if hired after Jan. 1, 2012). However, the employee cannot use accrued sick pay if he or she did not work an average of 10 or more hours per week in the most recent completed calendar quarter. Tracking this quarterly, 10-hour threshold may be a nuisance for employers.
Notice and Other Requirements
If the leave is foreseeable, the employer can require seven days advance notice. If the leave is unforeseeable, the employee must notify the employer as soon as practicable. For absences of three of more consecutive days, the employer can require certification from a medical provider.
The bill contains a posting requirement similar to the Family Medical Leave Act (FMLA). The state will likely provide employers with a model notice that explains the paid sick leave requirements. Employers will be required to post and maintain the notice in a conspicuous place, in both English and Spanish.
Failure to do so can result in fines up to $100 per violation.
Employers cannot retaliate against an employee for requesting or using paid sick leave. Fines to up to $500 apply per violation, in addition to forced payment of sick leave, back pay and reinstatement of employee benefits.
Actions for Employers
Employers with employees in Connecticut should review their sick leave policies to determine if any changes will be required once the new law takes effect. Employers who provide sick leave or PTO equal to or in excess of the bill's requirement will not need to amend their sick leave policies, provided they also grant sick leave in accordance with the bill's requirements.
