Move over Connecticut, San Francisco, Washington D.C., Seattle and Portland Oregon…New York City passes controversial Earned Sick Time Act. The intent behind the NYC Paid Sick Leave legislation encompasses workers needs for time off from work to take care of their health needs or the health needs of family members. Therefore, paid sick leave encourages positive overall public health and reduces the spread of and exposure to diseases.
On a basic level, the Act includes two important provisions:
- Paid sick leave, up to 40 hours per year, for many employees in New York City
- Unpaid sick leave, up to 40 hours per year, for those ineligible employees
This landmark legislation was actually vetoed by Mayor Bloomberg, but the NYC Council overrode the veto and the Act was adopted. The Act includes vital protections for the City’s economy. Generally speaking, it is scheduled to go into effect April 1, 2014, however, that date could change based on the economy’s performance. There is actually a reverse trigger that ensures the Act’s effective date coincides with an economy that can sustain it. What does this mean? If the economy unexpectedly worsens, the Act will be delayed until the economy performs at or better than it was performing as of January 2012. Once the economy performs at or better than the January 2012 level, the Act will become effective on the following April or October 1.
What Employers Need to Know
The Act requires businesses with 20 or more employees to provide five paid sick leave days beginning April 1, 2014. Then on October 1, 2015 businesses with 15 or more employees and all employers of one or more domestic workers will be required to provide the same. All employees not entitled to paid sick time are entitled to unpaid sick time. This means employers with 14 or fewer employees have to provide unpaid sick leave time. The Act does not apply to public employers – state and federal government agencies.
All employers must provide a minimum of one hour of sick time for every thirty (30) hours worked by an employee. Depending on the number of employees, the sick time will either be paid or unpaid. Sick leave accrues beginning at the time of hire or the effective date of the Act, whichever is later.
If employees do not use the sick leave time they have accrued in a calendar year, they can carry that time over. An employer can limit the use of paid sick leave to a total of 40 hours per calendar year. Should an employee become separated from his/her position, an employer is not required to pay that employee for accrued but unused leave.
“Notice of Rights” Labor Law Requirement
Employers need to be aware that they must provide new employees with written notice of the entitlement to sick leave. This includes addressing the accrual and use of sick time, the employer’s calendar year, and the right to be free from retaliation and to bring a complaint to the Department of Consumer Affairs. The notice must be in English and the primary language spoken by that employee (provided that the Department has made the translation available). The notice can be conspicuously posted in the workplace in areas accessible to employees.
The written notice requirement comes with a penalty for non compliance. Any person or entity that willingly violates the notice requirements as provided for in the Act is subject to a civil fine not to exceed $50.00 for each employee who was not given appropriate notice.
Employers must also document compliance with the Act and retain records of doing so for a period of two years.
Compliance Poster Company’s Legal Research and Health and Safety Compliance Department is monitoring developments and keeping a keen eye on New York’s economic conditions as we prepare for the Paid Sick Leave Act’s effective date. We will keep you posted as that date approaches.