Unless you’ve been living under a rock in New Jersey, you likely know that paid sick leave will be the law of the land for all New Jersey employers beginning on October 29, 2018.  We recently issued an update on the law and included a link to the draft poster that has been issued by the State.  More details can be found here.

The poster may not be in final form as the regulations have not been finalized.  However, employers must still post the poster by October 29, 2018.

If you haven’t already reviewed your sick leave policies for compliance, you should do that asap to be ready when the law goes into effect.

As an employment lawyer, I anxiously awaited the proposed regulations for the New Jersey sick leave law as the law left some unanswered questions regarding carryover and other issues.  The proposed regulations have been out for a few weeks now and I have had time to thoroughly digest them

Unfortunately for employers, the proposed regulations do not answer some of the questions my clients had regarding the law and create confusion in other areas.  Some of the more incomprehensible sections of the regulations occur in the section dealing with calculating sick leave pay.  Employers with tipped, commissioned or piecework employees should pay special attention to these provisions.

There are many problems with this section, but one of the key ones is how an employer calculates a rate of pay for employees with two or more jobs for the employer, has a fluctuating rate of pay, is paid on piecework, or is a tipped employee.  The proposed regulations at 12:69-3.6 provide that in these cases an employer must look at wages earned in the last seven (7) workdays where leave was not taken and take the earnings divided by the hours worked to get an hourly wage.

The problem with this is that few employees have a seven-day workweek. Instead, many employees have a five-day workweek.  For those employees, an employer would have to go back one workweek plus two more work days in a previous week, which is likely not representative of the employee’s regular work schedule. It also creates an administrative nightmare as the employer could not simply look at the previous workweek to see what was earned.

It would make more sense to use the last week worked or a two-week period which would be more representative of an employee’s schedule.

This is but one issue in the proposed regulations.  I have been working with several of my partners to help business groups prepare comments to the proposed regulations and this is one issue we intend to raise.

If you have other issues or questions about the proposed regulations, we would love to hear from you to see if they could be incorporated into our comments.

Employers can also provide comments directly to the Division of Labor by submitting written comments by December 14, 2018 to:

David Fish, Executive Director
Office of Legal and Regulatory Services
NJ Department of Labor and Workforce Development
PO Box 110
13th Floor
Trenton, New Jersey 08625-0110
E-mail: David.Fish@dol.nj.gov

Today, as expected, Governor Murphy signed into law the Paid Sick Leave Act.  The Paid Sick Leave law is effective October 29, 2018.

The Law requires all New Jersey employers, regardless of size, to provide up to 40 hours of paid sick leave per year.  Full details about the law can be found in our alert here.

Employers do have some time to get ready for the new law.  Employers should review their paid time off policies to determine if changes need to be made.

In the meantime, we will keep an eye out for the required poster that will be developed by the Department of Labor and let you know when it is issued.

On January 12, the Maryland General Assembly overrode Governor Larry Hogan’s veto and passed the Healthy Working Families Act. The Act will go into effect on February 11, 2018, unless the General Assembly passes legislation delaying its implementation.  Yesterday, one of the principal sponsors of the law did introduce legislation that would delay enforcement of the law until April 2018.  We will keep you posted on whether the implementation of the Act is delayed.

In the meantime, the Act requires Maryland businesses with at least 15 employees to offer paid sick and safe leave as well as requiring smaller businesses to provide unpaid sick and safe leave.

More specifically, the Act requires employers with at least 15 employees, regardless of whether those employees are seasonal, temporary, part-time, or full-time, to offer eligible employees the ability to earn up to 40 hours of paid leave a year.  The 40 hours can be awarded at the beginning of each year or accrued at a rate of one hour for every 30 hours worked.  Moreover, employees can carry over up to 40 hours of paid leave a year.  Employers can cap use of paid leave at 64 hours per year and are not required to pay out unused, accrued sick leave when an employee is terminated.  Employers with up to 14 employees must provide unpaid earned sick and safe leave under the same terms.

The paid leave can be used to: 1) care for the physical or mental health of the employee or a family member, including obtaining preventative care; 2) take maternity or paternity leave; or 3) obtain relief in response to domestic violence, stalking, or sexual assault of the employee or a family member.

There are some exceptions.  For example, the Act does not apply to workers who 1) regularly work less than 12 hours a week; 2) are under the age of 18; 3) are certain independent contractors; 4) are certain agricultural workers; or 5) work on an as-needed basis in the health and human services industry.  Additionally, there are exceptions for employers in the construction industry that are parties to collective bargaining agreements.

Additionally, employers may set some restrictions on the use of paid leave such as 1) only allowing the use of paid leave after an employee has worked 106 calendar days from the date of hire; 2) require up to seven days’ notice for foreseeable leave; and 3) implementing policies to prevent improper use.  Employers can also obtain verification regarding appropriate use of paid leave if it is used for more than two consecutive scheduled shifts or between the 107th and 120th calendar days of employment and the employee agreed to provide verification at the time of hire.

Employers are required to notify employees of their rights under the Act and to provide a written statement each pay period detailing the amount of earned leave available for use.  The Department of Labor, Licensing, and Regulation (DLLR) has been directed to create a model notice, but it is not clear when such notice will be available.

Next Steps for Employers

Employers should immediately review and revise their paid time off (PTO), sick, and other leave policies to ensure compliance with the Act.  At the same time, employers should monitor any action the General Assembly takes to delay implementation.  In the review and revision process, particular care should be given to:

  • Recordkeeping: employers must keep records regarding leave accrual and use for three years;
  • Notice: if DLLR does not issue a model notice before the implementation date, employers must create their own;
  • Payroll systems: employers must update payroll systems to report leave balances on pay stubs and meet the Act’s requirements;
  • Applicability: the Act applies to all part-time employees who do not fall into one of the exempt categories; and
  • Carryover: employers must allow employees to carry up to 40 hours of paid leave time over per year (subject to the 64 hour use limitation)

UPDATE (February 2, 2018): Today, the bill to delay the Act’s implementation received a favorable vote from the Maryland Senate Finance Committee and will move to the full Senate for a vote. The bill passed out of Committee with two important amendments that will benefit employers.

  • First, the Act would not take effect until July 1, 2018, rather than April 11, 2018, giving employers additional time to implement policies and procedures in compliance with the Act.
  • Second, leave accrual – currently slated to begin on February 11, 2018 – would also not begin until July 1. This should eliminate issues that would have arisen as leave accrued prior to employers being required to track it and in the absence of any regulations from the Department of Labor, Licensing, and Regulation.

The bill still has to pass both the Senate and the House of Delegates with a 3/5 vote if the Act’s implementation is to be delayed due to the bill’s designation as emergency legislation. The full Senate is expected to vote on the bill as early as Monday, February 5th.

UPDATE (February 8, 2018): The Senate passed the bill delaying the Act’s implementation, as amended, by a vote of 29-17.  The bill will now move to the House of Delegates for consideration where it will face an uphill battle due to the short time frame until the Act’s effective date.  Additionally, key legislators in the House have expressed opposition to delaying the Act’s implementation.

UPDATE (February 12, 2018): The Act is now in effect as the House of Delegates chose not to delay implementation.  A sample employee notice poster created by DLLR is here: http://www.dllr.maryland.gov/paidleave/paidleaveposter.pdf


Rachel Severance is an associate in the firm’s Labor and Employment Department, resident in its Washington D.C. office.

On November 6, 2017, the New York City Council passed Int. 1313-2016 that amends the Paid Sick Leave Law.  Don’t panic, employers.

The law does not require additional leave. It merely adds another covered reason that employees may use earned paid time off.  New York City’s paid sick leave law will now be entitled the “Earned Safe and Sick Time Act.”

Employees will be able to use earned safe/sick time for the following reasons if the employee or the employee’s family member has been the victim of a “family offense matter”, sexual offense, or human trafficking:

  1. to obtain services from a domestic violence shelter, rape crisis center, or other shelter or services program for relief from a family offense matter, sexual offense, stalking, or human trafficking;
  2. to participate in safety planning, temporarily or permanently relocate, or take other actions to increase the safety of the employee or employee’s family members from future family offense matters, sexual offenses, stalking, or human trafficking;
  3. to meet with a civil attorney or other social service provider to obtain information and advice on, and prepare for or participate in any criminal or civil proceeding, including but not limited to, matters related to a family offense matter, sexual offense, stalking, human trafficking, custody, visitation, matrimonial issues, orders of protection, immigration, housing, discrimination in employment, housing or consumer credit;
  4. to file a complaint or domestic incident report with law enforcement;
  5. to meet with a district attorney’s office;
  6. to enroll children in a new school; or to take other actions necessary to maintain, improve, or restore the physical, psychological, or economic health or safety of the employee or the employee’s family member or to protect those who associate or work with the employee.

Employers should update policies to make sure they are compliant with the new law as the law is effective May 5, 2018.

Employers will also be required to issue to all employees a Notice of Employee Rights notice to employees no later than June 4, 2018.  New hires hired on or after May 5, 2018 should be given a copy of the revised Notice of Employee Rights as well.  The DCA will be issuing a revised Notice of Employee.  We will update you when that is issued.

In November, voters in Arizona approved a ballot initiative that would require employers to provide paid sick leave.  The law goes into effect tomorrow.

Under the law, Arizona employers with less than 15 employees will have to provide up to 24 hours of paid sick leave.  Employers with 15 or more employees will have to provide up to 40 hours of paid sick leave.

In anticipation of the law, the Arizona Industrial Commission has issued FAQs, which can be found here.  The FAQs do make one significant change from the text of the law.  The FAQs do make clear that when counting employees for purposes of determining how much leave is to be offered, employers need only count employees working in Arizona.  Don’t get too excited.  This could change as the Commission itself notes that there might be further legislative guidance on this issue.

Employers not only need to make sure that they are offering leave, they will need to provide notices to the employees and post posters in both Spanish and English.

Arizona’s law, like many others, contains a no retaliation provision.  However, this provision should give employers pause.  Under the law, if any adverse action is taken against an employee within 90 days of them using sick leave, there is a presumption that adverse action was retaliatory.  Employers will then bear the burden of proving by clear and convincing evidence that the action was for a legitimate purpose.

Employers should tread carefully before disciplining any employee who has recently used sick leave.

Today’s post comes to us courtesy of Justin Schwam, an associate in the Labor and Employment Department in Roseland:

60987399 - four young friends drunk and hungover after house party sitting on the couch.

With the trend of local paid sick leave ordinances continuing its progressive sweep in cities across the country, a consistent concern for companies located in the vicinity is whether their operations fall within the local law’s reach.  Does it only apply if the company is physically located in the city?  Or does any employee activity within the city trigger the often onerous recordkeeping obligations?

A few weeks ago, a Minneapolis judge limited the reach of the City’s law slated to go into effect later this year.   Judge Dickstein issued a temporary injunction against the enforcement of its Ordinance against businesses not physically located in the City.  Although the City argued that its exclusive enforcement authority meant that it would not apply the Ordinance against businesses outside the City, the court recognized that such assurances, “however sincere,” did not alter the Ordinance’s plain language.

The court’s analysis of this issue is also notable for its dissection of the City’s argument that its action was a permissible exercise of its police powers to protect the health and welfare of residents.  The court found that the City’s attempt to regulate extraterritorial businesses whose employees “are unlikely (or may never) enter the city while sick” was not a narrowly tailored means of addressing “identifiable harms within the city limits,” such as a rule governing the inspection of extra-territorial cows whose milk was sold within the city.  Because a prime justification for these local ordinances is typically the need to protect residents from the spread of contagion, the court’s refusal to accept policymakers’ assumptions that ill workers would use the sick leave benefit to “protect against potential harm” is significant.

Although the injunction ultimately may be lifted, or the ordinance amended – it’s not scheduled to take effect until July 1, 2017 – employers not located in Minneapolis are breathing a sigh of relief.   For now, employees who occasionally travel to Minneapolis will not be entitled to accrue sick leave under the law.

As local action on this issue will no doubt continue to pick-up steam, since more state governments are looking at measures to prevent municipal action than are moving to enact state-wide measures, it will be interesting to see how cases like this one influence future legal challenges and how future paid sick leave laws are drafted.  We will keep an eye out and report back on any developments.

 

Yesterday, the New Jersey Senate was set to vote on S799.  However, the bill was pulled from the agenda and no action was taken.  If passed, the bill would require “large” employers, those with 10 or more employees, to provide up to 9 days of paid sick leave per year.  Smaller employers will have to provide 5 days of paid sick leave per year.

Even if the bill passed the Senate and then the Assembly, it is unclear if Governor Christie would sign any paid sick leave law, especially as he has gone on record last week with not wanting to sign bills that he viewed as hostile to businesses in New Jersey.

We will let you know if there is further action on the bill by the Senate.

14741681_s

13176052_sWith the flu going around our office in the last few weeks, I have heard lots of talk in the workplace about sick days.  Not complaints that employees who are sick do not have time available as they have quite a bit of PTO time, more complaints from other employees about why sick employees are coming to work.

Today alone, I was afraid when I came back from lunch that the employees might have risen up with pitchforks and torches against one employee who returned to work after being out sick the last few days with the flu, who for his or her own sake will not be named here.

I know mandatory sick leave laws are a headache for employers.  Complying with multiple sick leave laws in a variety of jurisdictions can be very complicated as well as costly for employers. The current iteration of sick leave laws do not realistically address challenges faced by small employers and add layers of complication to the administration of tracking leaves.  However, having a sick leave policy available definitely helps with employee morale issues.

Also, having a pandemic illness policy, i.e., when do you force employees to remain out of work, would certainly help, regardless of whether it is a flu pandemic or some or insidious zombie virus with which you are dealing. If you feel unprepared for a zombie apocalypse, don’t fret.  The CDC has you covered.  See, for example,  Preparedness 101_Zombie Apocalypse.

You cannot be less prepared for a zombie apocalypse than this poor girl whose brothers played an awful trick on her while she was high on anesthesia:

Just in case you missed it, today was the effective date of Elizabeth’s Paid Sick Leave law.  The law applies to all employers in Elizabeth.  Employees are eligible for paid sick leave if they work 80 hours per year in Elizabeth.

Under the law, employers with 10 or more employees must provide up to 40 hours per year of paid sick leave.  If the employer has less than 10 employees, then the employer must provide up to 24 hours of leave.

Leave may be taken for the following reasons:

  • An employee’s own health condition, including doctor’s appointments to diagnose or care for an illness
  • Care of a family member’s health condition, including doctor’s appointments to diagnose or care for an illness
  • Closure of employee’s place of business, employee’s child’s school or day care due to a public health emergency, or to care for a family member who has been quarantined.

41763450_sFamily members are broadly defined and include children (including biological, adopted, foster, step, or child of a civil union partner), parents (including step, foster adoptive and legal guardians), spouses, civil or domestic union partners, grandparents and their spouses or civil or domestic union partners, grandchildren, and siblings.

The law requires that employees be given written notice of the law. Employers must also post a poster advising employees of their rights under the law.

I contacted the Elizabeth Department of Health today and was told that the Department has not yet issued a poster, but that employers should create their own based on the provisions in the Ordinance.

Employers with questions about the contents of the notice or poster should contact employment counsel.