If your state legally requires small businesses to provide paid sick leave, then you are required to offer it to your employees. However, even if you aren’t required to do so, there are times when it makes sense to have paid leave as a benefit. Paid sick leave is attractive to potential employees, so it can help you attract new workers and retain your existing workforce.
No matter where you live, it is a good idea to check your state’s paid leave policies. Many states are implementing new policies or making updates to existing policies, so make sure your company is in compliance with ongoing changes to paid sick leave laws.
When Does It Make Sense for Employers To Offer Paid Sick Leave?
Some employers aren’t required by their state to let workers take paid time off when they’re sick. However, there are a few reasons why you may want to consider incorporating a paid sick leave plan into your organization.
Avoid Getting Everyone Sick
One of the most important reasons why employers should offer sick leave is to prevent other workers from getting sick. Almost half of workers took at least one sick day last year, and 8% of employees took 11 or more sick days.
Some of these sick days were likely preventable. When one employee comes to work sick, they can end up infecting everyone else. By not offering sick days to workers, you may end up having more people absent.
Attract Better Quality Candidates
If you want to compete with other companies, you should consider implementing a paid sick leave plan. Applicants want to have benefits, like paid time off. Even if you aren’t large enough to be legally required to offer paid leave, it’s wise to consider this benefit. If you’re competing against large companies that offer paid leave, you’ll need to provide it as well if you want to stay competitive among new recruits.
Improve Employee Retention
Similarly, paid sick leave can help you retain workers. When an employee leaves your company, they won’t be able to take their sick leave with them. As a result, this may encourage them to remain at your business for longer. Plus, employees generally stay longer at an organization where they are treated well.
Prepare for Future Requirements
Some states don’t require small businesses to offer paid sick leave. For example, you might not have to offer leave until you reach 15 employees. As you get closer to the cut-off point, you’ll need to start preparing your workplace for future leave requirements.
State-by-State Paid Sick Leave Laws
Before you can decide if you want to offer paid sick leave or not, you first have to determine if it is even an option in your state. In the following states, some form of paid leave is already a legal requirement for small businesses.
Arizona
In Arizona, employees accrue an hour of sick leave for every 30 hours worked. If the employer has 15 employees or more, then workers can accrue a maximum of 40 hours in a year. For employers with less than 15 employees, the maximum accrual is 24 hours.
California
California sick leave requires all companies that hire at least one worker for 30 days or more to provide sick leave. An hour of sick leave is accrued for every 30 hours worked. If the employer wants to, California will let them cap accrued leave to 80 hours or 10 days, whichever figure is more.
Colorado
Colorado law expects all employers to provide an hour of paid sick leave for every hour worked.
Connecticut
In Connecticut, paid sick leave is required for employers who have 25 or more employees. Additionally, the employee must work at least 120 days a year. Workers can receive up to one hour of leave for every 30 hours worked.
Illinois
While there are a few restrictions and exemptions involved, essentially all employers in Illinois are required to provide an hour of sick leave for every 40 hours worked.
Maine
In Maine, all employers with at least 10 employees must offer an hour of sick leave for every 40 hours worked. While paid sick leave starts to accrue immediately, it cannot be used until the employee has completed 120 consecutive days of work.
Maryland
Employers in Maryland who have at least 15 workers must provide sick leave to employees who work a minimum of 12 hours per week. An hour can be accrued for every 30 hours worked.
Massachusetts
All employers and all employees are covered by Massachusetts’s paid sick leave law. An employee can receive an hour for every 30 hours worked. Each year, 40 hours of leave can be carried over to the next year.
Michigan
Michigan’s paid sick leave law applies to all employers and employees. For workplaces with up to 10 employees, 40 accrual and usage hours are required. This number jumps to 75 for workplaces that have 11 or more workers.
Minnesota
All employers must provide paid sick leave to workers who have completed at least 80 hours of work during the preceding year. Workers can receive a maximum of 48 hours of sick leave at a rate of an hour for every 30 hours.
Nevada
Once employers have been in business in Nevada for two years and have a staff of 50 or more, they must provide 0.01923 hours of paid leave for every hour an employee works.
New Jersey
In New Jersey, all employers are required to provide leave to all employees in the state at a rate of one hour for every 30 hours worked. The total amount an employee can accrue in a year is capped at 40 hours.
New Mexico
On July 1, 2022, the Healthy Workplaces Act of 2021 took effect. Under the law, employers must provide workers with earned sick leave at a rate of one hour of sick leave for every 30 hours worked.
New York
In New York, private employers with at least five employees must give workers an hour of sick leave for every 30 hours of work. The amount of sick leave that can be accrued changes based on the employer’s size. At the top end of the range, a New York employer with 100 employees or more must allow workers to accrue up to 56 hours of paid sick leave every year.
Oregon
Oregon requires all businesses that have 10 or more workers to give one hour of paid sick leave for 30 hours of work. Companies that have fewer than 10 workers can use unpaid leave instead.
Rhode Island
Employers who have at least 18 workers must give workers an hour of leave for every 35 hours of work.
Vermont
In Vermont, every employer in the state is required to provide an hour of paid leave for every 52 hours worked. Employees are eligible for sick leave if they work 18 hours per week.
Washington State
All employers must provide one hour of leave for every 40 hours worked. There is no annual cap.
Washington D.C.
In Washington D.C., all employers must give workers paid leave. However, the amount of leave changes based on the number of employees at the business.
Prepare for Future Compliance Requirements
To prepare your company for future compliance requirements, spend some time learning about the paid leave laws in your state. Then, create an employee policy about sick leave. By codifying your sick leave approach, you can ensure a consistent HR approach. Plus, you can save time on answering future questions about sick leave.
While there has been talk about making sick leave a national requirement, it is currently legislated by the states. Currently, compliance requirements and penalties vary significantly from one state to another.
Even if your state doesn’t require sick leave, it’s often a smart idea to offer it. Top applicants prioritize sick leave benefits, and a sick leave policy helps prevent illnesses from spreading at your workplace.
If you’re ready to build your sick leave policy, we can help. To learn more, reach out to our team of small business HR and payroll experts today.