The New York City Council recently overrode a veto by Mayor Bloomberg to pass the Earned Sick Time Act. This new legislation will require most private employers in New York City to provide paid or unpaid sick leave to employees working in the city. Beginning in April 2014, businesses with at least twenty employees will be required to provide a minimum of forty hours (five days) of paid sick leave. Coverage will expand to businesses with 15 or more employees starting in October 2015. Some businesses will be exempt from providing paid sick time; they will, however, still be required to provide leave without pay to employees.
Main Provisions of the Earned Sick Time Act:
- Effective April 1, 2014, most New York City employers must provide a minimum of forty hours (five days) of sick leave per calendar year to their employees.
- Sick leave is defined as: time off for employees to care for an employee’s own health needs or those of an immediate family member (limited to spouse, child, parent or domestic partner). Sick leave can also be used if schools or businesses are closed due to a public health emergency.
- If an employer already provides at least five days of any kind of paid time off, they will not be required to provide any additional time off, paid or unpaid.
- For businesses with twenty or more employees, time off must be paid. For employers with fewer than twenty employees, time off can be unpaid; however, beginning October 15, 2015, the requirement to provide paid time off will expand to businesses with 15 or more employees.
- Employees begin to accrue sick time at the commencement of employment; however, they are not entitled to take leave until they have been employed for at least 120 days. Additionally, employers are not required to pay terminated employees for any unused sick time.
- Employers will be required to provide each employee with a written notice of the employee’s right to sick leave at the start of employment, and employers must keep records documenting their compliance with the Earned Sick Pay Act for at least two years.
Failure to comply with the Earned Sick Pay Act will result in varying degrees of fines and/or penalties. To avoid liability, employers should ensure that their employee separation practices comply with new requirements. Early planning and communication should alleviate any management concerns for proactive employers.
If you need help with sick leave cost management or would like to discuss your Human Capital strategy, please feel free to contact me at 732.395.4251 or [email protected].
