Paid sick leave laws continue to gain momentum across the country.  At least six new paid sick leave laws will go into effect next year, as well as significant amendments to San Francisco’s existing paid sick leave ordinance.  A summary of each law is below.  

Federal Contractors

In September 2015, President Obama signed Executive Order (EO) 13706, Establishing Paid Sick Leave for Federal Contractors.  The EO requires federal contractors and subcontractors to provide covered employees with up to 56 hours of paid sick leave per year.  Sick leave accrues at the rate of one hour for every 30 hours worked on a covered contract and may be used for an employee’s own illness or need for preventive care, or that of a family member, as well as for reasons resulting from domestic violence or stalking (“safe leave”).

The EO will apply to employers entering into new contracts covered by the Service Contract Act, the Davis-Bacon Act, concessions contracts and service contracts in connection with federal property or lands.  (This is the same coverage as EO 13658, Establishing a Minimum Wage for Contractors.)  Under the proposed rules, there is a limited exception for employees indirectly engaged in performing federal contract work, if they spend less than 20% of their hours a week performing in connection with such contract.

The EO will apply to federal contracts entered into on or after January 1, 2017.

Noteworthy Provisions

• The EO will not supersede any state or local paid sick leave law requiring greater paid sick leave or leave rights.
• Leave accrues for all time for which an employee is or should be paid.  This includes the paid sick leave an employee takes or any other paid time off provided by the employer.
• Employers must include certain language in every covered contract regarding the provision of paid sick leave to employees.
• “Family member” is defined to include common law spouses, domestic partners, and any person whose close association with the employee is the equivalent of a family relationship. 

State of Vermont

Under Vermont law, eligible employees will be able to accrue one hour of paid sick leave for every 52 hours worked.  Accrual will begin upon hire, but employers may impose up to a one-year waiting period before employees may use accrued leave.  Leave may be taken for an employee’s own illness or need for preventive care, or that of a family member, safe leave, or closure of a business or place of care due to a public health emergency.   

Vermont’s law will take effect January 1, 2017.  Small employers (those with five or fewer employees who work an average of 30 or more hours per week) will have until January 1, 2018 to comply. Annually review their plans for compliance with the Internal Revenue Code.

Noteworthy Provisions

• Accrual and use limits will change in 2019, increasing from 24 hours per year to 40 hours per year.
• New employers are exempt from complying with the law for a period of one year after hiring their first employee.
• If an employee voluntarily separates from an employer after completing the use waiting period (maximum length of one year) and is rehired within 12 months, the employee is not entitled to use leave without satisfying another waiting period.

Chicago, Illinois

Beginning next year, Chicago employers must allow covered employees to accrue one hour of paid sick leave for every 40 hours worked.  Leave will begin to accrue the day after hire (or on the ordinance’s effective date, whichever is later) and may be used 180 days after commencement of employment.  Employers may generally limit employees’ use of leave to 40 hours per year.  Leave may be taken for an employee’s own illness or need for preventive care, or that of a family member, safe leave, or closure of a business or place of care due to a public health emergency.

The ordinance will take effect July 1, 2017.

Noteworthy Provisions

• The law contains unique rules relating to carryover of accrued hours when an employer is subject to the Family and Medical Leave Act. 
• “Family member” is defined broadly and includes civil union partners, domestic partners, and any individual whose close association with the employee is the equivalent of a family relationship.

Minneapolis, Minnesota

In May, the Minneapolis City Council unanimously passed the Minneapolis Sick and Safe Time Ordinance.  It will require employers of all sizes to provide sick leave to covered employees at the rate of one hour for every 30 hours worked.  Employers may limit an employee’s accrued leave to 48 hours (80 hours in years of carryover), but there is no limit on how much leave an employee may use in a given year.  In addition to the standard uses for sick leave, the ordinance allows leave to be taken when a family member’s school or place of care closes due to inclement weather. 

The ordinance will take effect July 1, 2017.

Noteworthy Provisions

• Employers with fewer than six employees must provide employees with unpaid sick leave.
• Employers in the construction industry may have alternate ways to comply with the ordinance.
• Upon request, employees must be allowed to inspect employment and payroll records showing their accrued and used leave.

Santa Monica, California

Santa Monica employers will soon need to allow covered employees to accrue and use paid sick leave.  Leave will accrue at the rate of one hour for every 30 hours worked and may be used beginning on an employee’s ninety‑first day of employment.  The ordinance allows employers to cap the amount of leave employees may accrue; the cap varies based on the size of the employer.  Larger employers (those with 26 or more employees) must allow employees to accrue at least 40 hours of leave per year; smaller employers may cap accrual at 32 hours per year.  In 2018, these accrual limits will increase to 72 hours and 40 hours, respectively.

The ordinance will take effect January 1, 2017.

Noteworthy Provisions

• Posters must be displayed at each worksite in English, Spanish and any language spoken by at least 5% of employees.
• The ordinance does not address items such as the treatment of rehired employees or the ability to request certification that leave was taken for a permissible purpose.  We believe California’s Healthy Workplaces, Healthy Families Act will apply where the Santa Monica ordinance is silent.

Spokane, Washington

In January, the Spokane City Council approved legislation that will provide most workers three to five days of paid sick leave per year.  Leave will accrue at the rate of one hour for every 30 hours worked.  Employers may impose a limit on the amount of leave employees use in a given year.  Larger employers (those with 10 or more employees) must allow employees to use at least 40 hours of leave per year; smaller employers may limit use to 24 hours per year.  Leave may be taken for the standard reasons, as well as for safe leave and for bereavement in the loss of a family member.

The ordinance will take effect January 1, 2017.

Noteworthy Provisions

• Newly licensed businesses are exempt from complying with the ordinance for one year.
• Previously accrued leave does not need to be reinstated when an employee is rehired.
• Employers must provide employees with notice of their available leave at least once a quarter and upon request.

San Francisco, California (Amendments)

San Francisco voters recently passed Proposition E, which will amend the city’s existing paid sick leave ordinance.  The amendments will, among other things, allow employees to accrue paid sick leave upon hire, rather than after 90 calendar days.  Employers that frontload leave must allow employees to accrue paid sick leave after they have worked the number of hours necessary to have accrued the frontloaded hours.  The amendments will also allow employees to take leave for reasons related to domestic violence or to serve as a bone marrow or organ donor.  

The amendments will take effect January 1, 2017.

Additional Information

If you have any questions regarding paid sick leave laws or creating a policy to comply with these laws, please contact your Kutak Rock attorney or a member of the Kutak Rock employee benefits practice group listed below.