Impact on Employers
Accrual – Paid sick leave is earned beginning with the date of hire using an accrual system whereby employees earn one hour of leave for every 30 hours worked - up to a maximum of 56 hours (7 days) each year.
Use of Sick Leave - An employer is required to grant leave if it is requestd with a reason and expected duration. Sick leave can be used in cases of mental and physical illness, preventative care, to care for a child, parent, spouse, or any other individual related by blood or affinity whose close association with the employee is the equivalent of a family relationship. In addition, the recently proposed legislation allows victims of domestic violence to use paid sick leave for needs related to domestic violence (i.e. court appearances, counseling, relocation, etc.)
Reinstatement of Sick Leave - An employer is not required to reimburse employees for unused leave in the event of termination, resignation, retirement, or other separation from employment. However, if an employee is rehired within 12 months after separation by the same employer, the employer is required to reinstate the employee's previously earned paid sick leave.
Verification - Employers will not be permitted to verify the validity of an employee’s use of sick leave until the absence covers more than three consecutive work days. Certification is sufficient if it has the date(s) that leave was taken, probably duration of the leave, medical facts pertinent to leave taken and a statement that leave was necessary.
Lack of Notice - An employee is responsible for making “a reasonable effort” to schedule leave. “Reasonable effort” refers to an employee giving seven days notice when foreseeable and/or notifying an employer as soon as practicable. So, an employee could arrive late or leave suddenly and claim that they did not foresee the instance and there is nothing an employer can do about it.
Record Keeping - Employers must follow the record keeping requirements in accordance with 29 U.S.C. 211(C) and must submit their records to the Department of Labor once per yer. This could create unanticipated administrative burdens for small business owners.
Legal Issues - Employers are prohibited from disciplining, discriminating, and/or retaliating against an employee for any use of sick leave taken pursuant to the Act. In addition, employers are unable to discriminate against job applicants as well. Many employers have safeguards in place to ensure that employees are using their sick days properly. Under the proposed law, disciplinary actions taken by an employer against an employee who abuses sick leave may land that employer in court. Regardless of how much leniency courts will allow businesses when handling their employees’ use of paid sick leave, the cost of litigating these issues will deter business owners from taking disciplinary action against employees who abuse paid sick leave – and create a lucrative new specialty for employment lawyers.