Tracy Boland
On May 18, 2015, the Massachusetts Attorney General’s Office released a statement providing that some employers with existing paid time off policies will have a safe harbor for complying with the Massachusetts Earned Sick Leave law through Dec. 31, 2015.
The Sick Leave Law was approved by Massachusetts voters on Nov. 4, 2014.The law provides for earned sick time for employees at businesses of all sizes and goes into effect on July 1, 2015. Employees can use this leave for a variety of reasons, such as to care for themselves or a family member when ill, for routine medical appointments or to tend to the effects of domestic violence injuries.
As any employer knows, there already exist a plethora of laws providing for leave for illness and injury (Family and Medical Leave Act, Small Necessities Leave Act, Americans with Disabilities Act and the Domestic Leave Law, to name a few). The new Sick Leave Law presents particular challenges to employers in Massachusetts.
Impacts Of The Safe Harbor Notice
Employers that had a policy in place as of May 1, 2015, by which the employer offers all employees at least 30 hours of PTO in calendar year 2015, are now considered to be in compliance with the Sick Leave Law through Dec. 31, 2015.
Employers that had a policy in place as of May 1, 2015, by which the employer offers some – but not all – employees at least 30 hours of PTO in calendar year 2015 are considered to be in compliance through Dec. 31, 2015, only as to those employees who currently receive the 30 hours of PTO. Employers that grant a PTO allowance of 30 hours to those employees who do not currently receive the 30 hours, you will be considered to be in compliance as to all employees. Employers that do not extend the conditions of their pre-existing policy, or at least 30 hours of PTO, to the other employees, will be required to create a new policy for them that fully complies with the Sick Leave Law by July 1, 2015.
The safe harbor does not help at all any employers that had no policy in place as of May 1, 2015, by which the employer offered at least 30 hours of PTO to any employees. They will be required to create a new policy that fully complies with the Sick Leave Law by July 1, 2015.
Employers able to make use of the safe harbor will be in full compliance as long as they (1) provide this leave as job-protected leave and (2) comply with the law’s non-retaliation and non-interference provisions. Otherwise, they are free to administer this PTO per the terms of the policy in effect as of May 1, 2015.
Nevertheless, on or before Jan. 1, 2016, all employers – including those operating under this safe harbor – will be required to comply fully with the terms of the Sick Leave Law. The attorney general intends to issue final regulations by June 19, 2015.
Massachusetts joins Connecticut and California – as well as a growing number of municipalities across the country – in requiring employers to provide earned sick time for employees. Undoubtedly, the policy behind this guaranteed sick time is sensible. No one wants to worry about losing their job because a child has the flu or an elderly father is in the hospital. However, this law brings yet more costs to employers of all sizes, including impeding an employer’s ability to control attendance.
The smallest employers (fewer than 11 employees) must go without the help or pay for coverage when these employees are absent. Employers with just 11 or more employees will be required to add this amount of paid time off to an already costly salary and benefits package. In some businesses, the impact of this law may be the reduction of other benefit plans to account for the added cost this law imposes.
