Understanding Sick Leave Accrue and Paid Time Off

Sick leave accrue can be a complex topic, but understanding the basics can make a big difference. Many employees are entitled to accrue sick leave, which is paid time off for when they're ill or injured.

The accrual rate varies by employer, but it's often based on a set number of hours or days per pay period. For example, if an employee works 40 hours a week, they might accrue 8 hours of sick leave per month.

Accrued sick leave can be used for a variety of reasons, including doctor's appointments, surgeries, and even family care responsibilities.

Employees start accruing sick leave on the first day of employment and every month thereafter. This means that new employees will earn sick leave from the very beginning, even if they don't take any time off right away.

Regular employees earn eight hours of sick leave for each month or fraction of a month of employment. Less than full-time employees accrue sick leave on a proportional basis.

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Unused sick leave is carried forward each month, and there is no limit to the number of hours that may be accrued. This means that employees can continue to earn sick leave without worrying about running out.

Here's a breakdown of how sick leave accrual works:

If an employee is absent on a paid leave status, they will continue to accrue paid sick leave each month on leave. However, the hours accrued while on leave will be posted to the leave balance only when the employee returns to work.

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Accrual is a crucial aspect of sick leave policies. Employees accrue sick leave beginning on the first day of employment and on the first day of each succeeding month thereafter.

Regular employees earn sick leave at the rate of eight hours for each month or fraction of a month of employment. Less than full-time, benefits-eligible employees accrue sick leave on a proportional basis.

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There is no limit to the number of hours that may be accrued. Unused sick leave will be carried forward each month.

If an employee is absent on a paid leave status, the employee will continue to accrue paid sick leave each month on leave. The hours accrued while on leave will be posted to the leave balance only when the employee returns to work.

However, if the employee fails to return to work, the employee is not entitled to the accruals. An employee on faculty development leave will accrue sick leave at the full-time rate.

An employee on leave without pay that extends for at least one full calendar month will not accrue sick leave. Similarly, an employee whose status changes from an eligible to an ineligible leave status will have all accrued sick leave balances frozen at the time of the status change.

If the employee subsequently returns to an eligible leave status, the employee may recommence the use and accrual of sick leave. Sick leave that was accumulated prior to extended military leave is frozen until the employee returns to employment.

The following table illustrates the accrual rates for regular and less-than-full-time employees:

If an employer already has a leave policy in place that meets or exceeds the accrual, carryover, and use requirements, they don't have to do anything extra.

Existing leave policies that meet the requirements of the law don't need to change, so employers can stick with what they already have.

Collective bargaining agreements are also covered, but only if they're entered into after September 30, 2020.

Employers don't have to provide the sick leave required by the law if their collective bargaining agreement provides comparable benefits or paid days off.

Comparable benefits can be leave time with fewer restrictions on its use, regardless of the label, or multiple leave benefits that meet the use requirements of the law.

To satisfy the law, any collective bargaining agreement entered into after September 30, 2020 must specifically reference Labor Law Section 196-b.

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Accrual is a crucial aspect of understanding sick leave policies. The amount of leave an employee receives depends on the size of their employer.

Employees with larger employers get more leave time. For instance, employers with 100 or more employees must provide up to 56 hours of paid sick leave per calendar year.

Smaller employers have different rules. Employers with 5 to 99 employees must provide up to 40 hours of paid sick leave per calendar year. This is the same for employers with 4 or fewer employees and a net income of greater than $1 million in the previous tax year.

Some smaller employers don't have to pay for sick leave. However, they still need to provide the allotted leave time. This applies to employers with 4 or fewer employees and a net income of $1 million or less in the previous tax year.

Here's a breakdown of the leave time for different employer sizes:

Accrual policies can be complex, but understanding what you can use your accrued leave for is crucial. You can use sick leave for mental or physical illness, injury, or health condition, regardless of whether it has been diagnosed or requires medical care.

Immediate family members are also covered under this policy, including those living in the same household who are related by kinship, adoption, or marriage. This also includes minor children, whether or not they live in the same household.

You can use sick leave to care for a spouse, child, or parent who needs care and assistance due to a documented medical condition. However, you can only use leave for family members not residing in your household for the time necessary to provide care and assistance.

An employee's use of sick leave for family members related by marriage who do not reside in that employee's household is strictly limited by state statute. An employee who is the legal guardian of a child by court appointment may use sick leave to care for the child.

Here are some key permitted uses of accrued sick leave:

Employers are allowed to require that leave be used in increments, but the minimum increment cannot be more than 4 hours.

You must carry over accrued, unused paid sick leave balances of 40 hours or less from one accrual year to the next. This means employees can use their accumulated hours from the previous year in the new year.

Unused paid sick leave hours continue to accrue in addition to the amount carried over, so employees can earn even more hours over time.

To reinstate previously accrued, unused paid sick leave, you must rehire an employee within 12 months of their separation. This includes employees hired at a different location for the same employer.

Accrued paid sick leave hours do not have to be reinstated if you cashed out or paid them in full when employment ended.

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There are several types of employees who may accrue sick leave, including full-time employees, part-time employees, and temporary employees. Full-time employees typically work a standard number of hours per week and accrue sick leave based on their hours worked.

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Part-time employees, on the other hand, may work a variable number of hours per week and accrue sick leave based on their average hours worked over a certain period of time. Temporary employees may also accrue sick leave, but the rules can vary depending on the company's policies.

Some companies may also have different types of employees, such as exempt employees who may not accrue sick leave in the same way as non-exempt employees. For example, exempt employees may be required to use their vacation time for sick leave.

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You can't discipline an employee for using paid sick leave for authorized purposes. This includes termination, suspension, demotion, denying a promotion, reducing pay or scheduled hours, or altering an employee's preexisting work schedule.

Discipline for using paid sick leave is strictly prohibited. You can't threaten to take or take action based on the immigration status of an employee or their family members. This is a serious matter that can have severe consequences.

Here are some examples of actions that are not allowed:

When managing hourly employees, it's essential to understand their compensation for paid sick leave. You must calculate their normal hourly compensation based on the hourly rate they would have earned during the time they used paid sick leave.

For hourly employees, you must pay them the hours they were required to work when they used paid sick leave, or the part of their shift that they were absent. This is a straightforward approach to ensuring they receive fair compensation.

If an employee is scheduled for an open-ended shift based on business needs, you must pay them the amount of hours their replacement worked or what a similar worker worked.

Here's a quick summary of how to calculate paid sick leave for hourly employees:

If you have employees with variable pay or shifts, you need to consider how paid sick leave affects them. For an employee whose hourly rate of pay fluctuates, you must calculate an equivalent hourly rate.

Employees with variable shifts, such as those defined by business needs rather than a specific number of hours, also require special consideration. You must calculate an equivalent hourly rate for these employees as well.

To ensure fairness and compliance, it's essential to understand the specific requirements for each type of employee. For example, if an employee is scheduled to work a shift of uncertain length, you must calculate their equivalent hourly rate accordingly.

Here are some key takeaways to keep in mind:

You have the option to "cash out" an employee's accrued, unused paid sick leave balance when their employment ends.

If you do choose to cash out any portion of an employee's accrued, unused paid sick leave balance, you'll need to provide full reimbursement for the balance.

If you don't provide full reimbursement, you may have to reinstate any unpaid balance if the employee is rehired within 12 months.

This means you'll need to keep track of any remaining balances and be prepared to pay them out if the employee returns to work within a year.

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Employers are required to keep track of sick leave accruals and provide employees with records upon request. You can expect to see this happen in a timely manner, as employers must respond within three business days.

To be more specific, this recordkeeping requirement applies to the amounts of sick leave accrued and used by the employee in the current calendar year and/or any previous calendar year.

Accrued Time Off is a crucial aspect of sick leave accrual. Accrued Sick Leave can be used for sickness or injury to self or a family member.

If you don't use all your accrued sick leave, it can carry over to the next year. However, the amount that carries over depends on your employer's policy. For example, if your employer only allows a minimum of 40 hours to carry over, any excess hours will be lost.

Here's a rough estimate of how carryover works: if you don't use any sick leave during the year, you'll have about 48 hours of paid sick leave accrued on Dec. 31, but only 40 hours will carry over if your employer has a minimum carryover policy.

To illustrate this, let's say you used 16 of your 48 hours of paid sick leave, you would have 32 hours of paid sick leave remaining on Dec. 31, and all 32 hours would carry over into the next year.

Accrued paid sick leave hours must be reinstated if you rehire an employee within 12 months of their separation. This means that the employee will have access to their previously accrued, unused paid sick leave immediately upon rehire.

Here's a summary of the reinstatement rules:

Carryover of Paid Sick Leave is an important aspect of Accrued Time Off policies. Employees must carry over their accrued, unused paid sick leave balances of 40 hours or less from one accrual year to the next.

You can offer a more generous carryover policy, but the minimum requirement is to carry over 40 hours or less. This means employees get to keep their paid sick leave hours from the previous year.

Unused paid sick leave hours continue to accrue in addition to the amount carried over. This ensures employees can continue to earn paid sick leave even after the carryover.

Here are some key points to remember about carryover of paid sick leave:

Accrued sick leave can be used for a family member's illness or injury, not just the employee's own.

If an employee has accrued paid sick leave, they can use it for birth or adoption of an employee's child.

Accrued sick leave can only be accessed after all PTO days have been utilized.

Unused paid sick leave can be carried over to the following year, with a minimum carryover policy of 40 hours or less.

Here's a breakdown of how carryover works:

If an employee has accrued paid sick leave and doesn't use it, their balance will continue to accrue. For example, if an employee has a balance of 40 hours on July 1st, they will earn another 26 hours by January 1st, for a total of 66 hours.

Accrued sick leave may only be accessed after all PTO days have been utilized, but it can be used for employee or family member illness, injury, or disability.

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