From ballot to benefit: Understanding the new paid sick leave laws in three states

Three states included accrued paid sick leave proposals on the 2024 ballot: Alaska, Missouri, and Nebraska. Voters in each of those states approved these sick leave initiatives, meaning that employees who work in each of those states will be entitled to paid sick leave in the near future, barring any unforeseen challenges in the regulatory process. The below outlines the next steps for each of these sick leave initiatives and provides details on what that means for employers and employees in each location. And remember, these are subject to change.

Elderly patient looking out window

Alaska: Paid Sick Time

Voters in Alaska approved Ballot Measure No. 1, under which the Alaska Department of Labor and Workforce Development will draft and implement regulations to provide employers with details as they prepare for sick leave accruals, which begin July 1, 2025.

The proposal appears to cover all employers regardless of size but does differentiate between employers with 15 or more employees and those with fewer than 15 employees.

  • For those with 15 or more employees, employees shall accrue one hour of sick leave for every 30 hours worked, up to a maximum of 56 hours.
  • Those employers with fewer than 15 employees accrue at the same rate, but the maximum balance is 40 hours.

Other than a few exceptions, which appear similar to those of existing sick leave laws in different states and locations, all employees are entitled to sick leave. Similarly, the covered leave reasons appear similar to other sick leave regulations, allowing leave for the employee’s own illness, injury, or health condition to care for a family member and safe leave.

The regulations may provide more guidance, but the proposed law does not mention frontloading. The law does appear to require the carryover of unused hours. Still, it caps the overall balance, and this also caps annual usage at 56 hours (or 40 hours for employers with fewer than 15 employees).

 

Missouri: Earned Paid Sick Time

After this initial approval by Missouri voters, the Missouri Department of Labor and Industrial Relations will be responsible for drafting regulations. The proposal, titled Proposition A, lists a proposed effective date of May 1, 2025.

The proposed law broadly defines employers but excludes public employers. Similarly, a covered employee is broadly defined, with a few common exceptions included in other sick leave mandates. Those eligible employees will accrue one hour of sick leave for every 30 hours worked, and there is currently no cap or limit on accrual.

Covered leave reasons in Missouri appear similar to Alaska: employee’s own illness, injury, or health condition; to care for a family member; and safe leave. However, Missouri’s proposed law also includes the closure of an employee’s business due to a public health emergency, the closure of the employee’s child’s school or daycare for the same reason, and the need to quarantine.

The Missouri law also allows for frontloading of sick leave hours but does not include details about how frontloading will impact the obligation to allow carryover of up to 80 hours of accrued but unused sick leave. Despite the higher balances and carryover, employers can limit usage to 56 hours or 40 hours for employers with fewer than 15 employees.

 

Nebraska: Healthy Families and Workplaces Act

Nebraskans voted to pass Measure 436, which propels the Nebraska Department of Labor to draft regulations, which will likely require public hearings and other steps before finalization. Employers will need to monitor the status to prepare for sick leave accruals scheduled to begin on October 1, 2025.

All private Nebraska employers are covered under the proposed law, which also broadly defines employees as anyone who works 80 or more hours within the state per calendar year. All eligible employees will accrue one hour of sick leave for every 30 hours worked, up to the maximum of 56 hours or 40 hours for employees of a small business, defined as any business with fewer than 20 full-time, part-time, and temporary employees.

The proposed law covers leave for absences due to the employee’s own illness, injury, or health condition; to care for a family member; and the closure of an employee’s business due to a public health emergency, closure of the employee’s child’s school or daycare for the same reason, and the need to quarantine.

Like Missouri, Nebraska will allow employers to frontload sick leave hours but does not include details about how frontloading will impact the obligation to allow carryover of accrued but unused sick leave. There is no mention of a limit on carryover or a maximum balance, but employers can limit usage to align with the maximum annual accruals.

Portrait of two business colleagues, looking at something online

Next steps for employers?

  • Continue to monitor the Connecting with Compliance blog for updates on these proposed regulations, as well as all other sick leave law updates.
  • For employers with employees in Alaska, Missouri, and Nebraska, review existing sick leave policies to ensure compliance with these new law(s).
  • Train supervisors and/or managers to be familiar with these laws and update any training materials (or other process documents) to align with them.

Each of these initiatives represents a significant step toward employees having access to paid sick leave across the United States, with three more states being added to the 40+ locations that already require some form of paid sick leave. While voters have approved these initiatives, there will likely be many changes to each proposed law’s details in the next regulatory processes.

 

How can Marsh McLennan Agency’s Absence, Disability, & Life Practice help?

Marsh McLennan Agency’s Absence, Disability, & Life Practice has developed an innovative paid sick leave tool designed to assess your workforce’s dynamics, providing you with valuable insights into its effects on your organization. We are committed to incorporating these three new states as soon as the proposed regulations are released. If you are interested in this analysis, please let us know, and your Marsh McLennan Agency partner will reach out to you.

October 2024 Statutory Update

Click HERE to view and download the full Update

In this Update:

Paid Family and Medical Leave Updates

California State Disability Insurance (CA SDI) and Paid Family Leave (CA PFL)

Use of Vacation Time Prior to Receipt of CA PFL Benefits
Advance Filing of CA SDI and CA PFL Claims

Delaware Paid Family Leave (DE PFL) – Revised Regulations

District of Columbia Paid Family Leave (DC PFL) – Maximum Weekly Benefit Increase

Maine Paid Family Leave (ME PFL)

Updated Resources
Paid Leave Portal – Employer Registration and Private Plan Application

Maryland Family and Medical Leave Insurance (MD PFAMLI) Status Update

Massachusetts Paid Family and Medical Leave (MA PFML) Benefit Accruals During Leave

 

Accrued Paid Leave Updates

California Paid Sick Leave – Amendment

Massachusetts Earned Sick Time – Amendment

Michigan Earned Sick Time – Updated Resources

 

Other News

 California – Anti-Discrimination, Accommodations and Leave for Crime Victims – Amendment

 

Important Reminders 

October – December

Colorado Family and Medical Leave Insurance (CO FAMLI) – Private Plan Requirements

Delaware Paid Leave (DE PL)

Employer Registration, Private Plan Application, and Opt-In
Model Notice Available

District of Columbia Paid Family Leave (DC PFL) – Contribution Rate Change for Q3 Remittance

Minnesota Paid Leave (MN PL) – Quarterly Wage Detail Reporting Due October 31

 

January

California State Disability Insurance (CA SDI) and Paid Family Leave (CA PFL) –  2025 Benefit Formula

Connecticut Paid Sick Leave – Applies to Most Employers Beginning January 1; Model Notice Available

Delaware Paid Leave (DE PL) – Contributions Begin January 1

Maine Paid Family and Medical Leave (ME PFML)

Contributions Begin January 1
Model Notice Available

New York Paid Prenatal Personal Leave – Becomes Effective January 1

Paid Leave Oregon (PLO) – Reasons for Leave Expand Effective January 1

Rhode Island Temporary Caregiver Insurance (RI TCI) – Maximum Duration Increases January 1

 

2025 Paid Family and Medical Leave (PFML) Rates, Benefits and Required Notices

August 2024 Statutory Update

Click HERE to view and download the full Update

In this Update:

Family and Medical Leave Updates

California Family Rights Act (CFRA) – Small Employer Family Leave Mediation Program

California Paid Family Leave (CA PFL) – Small Business Grants

Colorado Family and Medical Leave Insurance (CO FAMLI)

SAWW Increase eff. 7/1/24

Maximum Weekly Benefit Increase eff. 1/1/25

Delaware Paid Leave (DE PL)

Amendment

Model Notice Available

District of Columbia Paid Family Leave (DC PFL)

Contribution Rate Increase eff. 7/1/24

Weekly Benefit Increase eff. 7/1/24

Massachusetts Paid Family and Medical Leave (MA PFML) – Retroactive Private Plans

Oregon Family Leave Act (OFLA) – Updated Model Notice

Paid Leave Oregon (PLO) – SAWW and Maximum Weekly Benefit Increase eff. 7/7/24

Rhode Island Temporary Disability Insurance (RI TDI) and Temporary Caregiver Insurance (RI TCI)

Maximum Weekly TDI and TCI Benefit Increase eff. 7/1/24

Maximum TCI Benefit Duration Increase eff. 1/1/25

Washington Paid Family and Medical Leave (WA PFML) – SAWW and Maximum Weekly Benefit Increase eff. 1/1/25

Paid Family Leave as a Class of Insurance – South Carolina

Accrued Paid Leave Updates

Michigan Accrued Paid Leave – Earned Sick Time Act (MI ESTA) Reinstated eff. 2/21/25 

Other News

New York Paid Breaks for Nursing Employees – Updated Resources

Important Reminders 

August 

Massachusetts Paid Family and Medical Leave (MA PFML) – Private Plan Reporting Due 8/31

Paid Leave Oregon (PLO) – Equivalent Plan Renewals

September

Delaware Paid Leave (DE PL) – Employer Registration Begins 9/1

October

Minnesota Paid Leave (MN PL) – Quarterly Wage Detail Reporting Due 10/31

Across the Map of Paid Sick Leave

Marsh Mclennan Agency’s most recent statutory update covered a broad spectrum of topics, including PWFA and paid statutory leaves across the map. It also provided overviews of various paid sick leave regulations and updates in Washington, Illinois, and New York. For this blog post, we discuss what changed and some resources you may find helpful.

USA Map with pins

Washington

Let’s start out west, where Washington’s paid sick leave will be expanding, becoming effective January 1, 2025. Reasons for leave will include the closure of an employee’s child’s school or daycare due to an emergency declared by the state or local government. It will also expand the definition of covered relationships, which now includes absences for a child’s spouse and a non-family member who lives with and depends on the employee.

Whenever there are clarifications or updates such as these it is a good time to make sure your paid sick leave policy, notices, and various education materials are up to date. Washington State Department provides some great reference resources on their website to help guide you as well.

 

Thermometer, father and sick child in bed to sleep with a fever with paternity leave to check temperature. Black girl kid and a man together in bedroom for medical risk, health test and virus problem

Illinois

Next stop, Illinois, where we saw some clarifications of the Illinois Paid Leave for All Workers Act (PLAWA) when the final became effective April 30, 2024. This Illinois law is similar to accrued paid sick leave requirements that we see in many other states, but covers absences for any reason (not limited to employee’s own sickness or caring for a family member, etc.) and carves out employers that are covered by existing city/county ordinances. Like Washington, the Illinois Department of Labor website has some great resources, including employee notices that can be leveraged.

Which leads us to Cook County, which has no major updates or changes, and Chicago. Chicago’s “new” Paid Leave and Paid Sick and Safe Leave ordinance became effective July 1, 2024. It goes beyond many other state/local sick leave regulations by providing a total of 80 hours of paid leave, 40 hours of more traditional sick leave, and 40 hours that can be used for any reason. A few things to keep in mind:

  • Ensure your policies adhere to the standard put in place
  • Employers should be aware that they must provide notice to all covered employees with their first paychecks and information available in common areas of the workplace.

The Department of Business Affairs and Consumer Protections has a great FAQ available that provides many answers you may be looking for.

 

New York

Next, we head further east to New York, where the state enacted a first-of-its-kind legislation expanding paid sick leave to provide an additional 20 hours of paid prenatal leave. This paid time off is an amendment to the existing paid sick leave law, but employers must provide pregnant employees with separate and additional 20 hours beginning January 1, 2025.

We will have more information as we hear updated details and guidance from the state, and we will start to watch for other locations that might copy New York’s approach.

Close up of cute pregnant belly and x ray ultrasound scan of baby, x-ray pregnant.

Connecticut

Finally, significant changes are coming to Connecticut’s accrued paid sick leave law. Connecticut’s existing law requires only those employers with “service workers” to provide accrued paid sick leave, but recent changes will expand that requirement to nearly every employer in Connecticut by 2027 and will impact any employer with 25 or more employees as soon as January 1, 2025. There are also changes to the accrual rate, which is increasing from one hour accrued per 40 hours worked to one hour accrued per 30, expanded covered uses, record retention, and many other changes.

All employers in Connecticut should take a few steps in advance of these changes:

  • Review any existing sick leave policies
  • Check HRIS or payroll systems to ensure that accruals are set up for Connecticut employees
  • Train managers and human resource teams in Connecticut to recognize the types of requests that would be covered under sick leave

Be sure to check out the statutory update for the full list of updates to accrued paid sick leave from coat-to-coast and everywhere in between, along with federal updates, and state FMLA laws!

How can MMA ADL help?

Marsh McLennan Agency’s Absence, Disability, and Life Specialty Practice helps clients understand, integrate, measure, and manage leaves of absence, time away from work, disability, and life insurance programs. Specializing in absence for over 20 years allows us to help employers meet employee expectations, reduce compliance risk, and manage costs. We are here to be your trusted partner, allowing you to prioritize what truly matters – your people.

June 2024 Statutory Update

Click HERE to view and download the full Update

In this Update:

 

Federal

Department Guidance

Pregnant Workers Fairness Act (PWFA) – final regulations

Artificial Intelligence and the FLSA, the FMLA, and Other Employment Laws – guidance

 

State and Local

Family and Medical Leave Updates

Connecticut Paid Leave (CT PL) – amendments

Colorado Family and Medical Leave Insurance (CO FAMLI) – guidance

Delaware Paid Leave (DE PL) – regulations updates

Maine Paid Family and Medical Leave (ME PFML) – proposed regulations, amendments

Maryland Family and Medical Leave Insurance (MD FAMLI) – program date changes, amendments

Minnesota Paid Leave (MN PL) – amendments, reporting requirement update

Minnesota Pregnancy and Parental Leave Act – amendments

Oregon Family Leave Act (OFLA) – regulations updates

Washington Paid Family and Medical Leave (WA PFML) – regulations update

Paid Family Leave as a Class of Insurance – Kentucky

 

Accrued Paid Leave Updates

Connecticut Paid Sick Leave – amendments

Illinois Paid Leave for All Workers Act (PLAWA) – final regulations

Chicago Paid Leave and Paid Sick and Safe Leave – final regulations, model notice

Cook County, IL Paid Leave – amendment

Minnesota Earned Sick and Safe Time – amendments

New York Paid Sick Leave – amendment: Paid Prenatal Leave     

Washington Paid Sick Leave – amendments   

 

Other News

New York – Paid Breaks for Nursing Employees

New York COVID-19 Sick Leave – repeal

Comparing Accommodation Rights: PWFA and ADA

Let’s start by defining each:

PWFA: Requires covered employers to provide reasonable accommodations for an applicant’s or employee’s known limitations related to pregnancy, childbirth, or related medical conditions unless the accommodation will cause the employer an undue hardship.

ADA: Prohibits discrimination against individuals with disabilities in various areas of life. Beyond that, Title I of the ADA requires an employer to provide reasonable accommodation to qualified individuals with disabilities, except when such accommodation would cause an undue hardship.

There are a few similarities between the two laws:

    • both programs require employers with 15 or more employees to adhere to these programs
    • both require employers to provide reasonable accommodations in certain situations
    • both advise that each situation be looked at on a case-by-case basis. The employer needs to analyze the individual circumstances of the request to determine whether and how to provide accommodation(s).
    • both, and specifically under the PWFA, state the employer should consider other reasonable accommodation options before exploring leave of absence as an accommodation
    • both state that leave of absence may be a reasonable accommodation, including reduced schedule or intermittent leave.
    • both define “undue hardship” relatively the same

In many cases, a pregnant applicant or employee can be covered by the ADA and PWFA, but that is not always the case. Which brings us to …

 

Key differences between the PWFA and ADA:

  1. Who is eligible?

PWFA: The PWFA protects all employees (or applicants) who work for a covered employer and have known limitations related to pregnancy, childbirth, or related medical conditions.

ADA: The ADA protects qualified individuals with disabilities, which is any person who has a physical or mental impairment that substantially limits major life activities, has a record of such an impairment, or is regarded as having such an impairment.

 

  1. Should the eligible employee be able to handle their essential job function for an accommodation to be instituted?

PWFA: Not necessarily. In limited situations under the PWFA, an employee may be eligible for accommodation even when they are unable to perform the essential functions. There are three requirements in this situation:

a. inability to perform the essential functions must be temporary

b. essential functions can be performed in the near future

c. the inability to perform the essential functions can be reasonably accommodated

The PWFA provides additional information and definitions regarding those terms. For example, temporary is defined as “lasting for a limited time, not permanent,” and the near future refers to a time period within 40 weeks, the typical duration of a pregnancy.

ADA: Yes. Under the ADA, the employee must be able to perform the essential functions of the position. An employer is not required to eliminate or remove essential functions as part of the accommodation.

 

  1. What types of medical conditions or disabilities must be accommodated?

PWFA: The PWFA protects those with known limitations related to pregnancy, childbirth, or related medical conditions. The condition does not need to rise to the level of disability. Instead, pregnancy itself is covered. These terms are broadly defined in the PWFA and may include infertility and fertility treatment, use of contraception, termination of pregnancy, and many other pregnancy-related issues. PWFA also covers several conditions that are not unique to pregnancy or childbirth, such as migraine headaches, nausea or vomiting, and others.

ADA: The ADA covers individuals with disabilities – a significantly broader category than PWFA but more limited in scope when it comes to pregnancy and pregnancy-related conditions. Under the ADA, pregnancy itself is not considered a disability and is not covered unless there are additional related conditions that rise to the level of a disability.

 

  1. Can an employer require medical documentation before providing an accommodation?

PWFA: The PWFA proposes that there are many situations in which an employer should review and provide an accommodation without requiring medical documentation. Thus, an employer may only require certification if it is reasonable for the employer to determine whether to grant the accommodation. The PWFA also introduces the concept of the employee’s self-confirmation. This means the employee’s statement about limitations and accommodations is all that is required in some cases, and requesting documentation is not reasonable. It would also not be reasonable if the limitation and need for accommodation is obvious, which could be:

      • when the employee has provided sufficient information,
      • when the employee is pregnant and requests any of the four common types (see below),
      • or when the limitation is lactation or pumping.

ADA: Under the ADA, employers may only ask for medical certification when the disability and/or need for accommodation is not known or obvious. If the disability and need for accommodation are obvious, such that the employer knows of the disability without the employee mentioning it or asking for an accommodation, an employer should move to the next step of identifying potential accommodation(s).

 

  1. What types of accommodations must be provided?

PWFA: Each situation must be reviewed on a case-by-case basis, similar to the ADA, but four requests should be processed quickly without medical documentation and with a limited interactive process:

      • carrying and drinking water
      • additional restroom breaks
      • sitting or standing changes
      • breaks to eat or drink, as needed

In addition, the PWFA provides a non-exhaustive list of potential accommodations, including job restructuring, modified schedules, more frequent breaks, permitting the use of paid leave or providing unpaid leave, light duty, telework, and more.

It is also important to note that the PWFA will generally cover requests related to lactation and pumping, which are not typically covered under the ADA.

ADA: The EEOC has provided a similar list under the ADA.

 

  1. Can the employer provide alternative options for the accommodation without the employee’s consent?

PWFA: No. The PWFA does not allow an employer to choose an accommodation but requires collaboration through an interactive process.
ADA: Yes. The ADA also typically uses the interactive process but allows the employer to choose to provide an alternative accommodation rather than the employee’s requested accommodation as long as it is effective.

 

  1. Can the employer require leave as an accommodation?

PWFA: The PWFA prohibits an employer from requiring an employee to take a leave of absence as an accommodation if the employee is seeking an at-work accommodation (and such accommodation is reasonable and available).
ADA: This is a best practice under ADA but not a requirement.

As employers continue to adjust processes to align with PWFA requirements, a couple of things that will help get you started on being compliant prior to the effective date of the final regulation, June 18, 2024:

    • Review your existing accommodations policy (and related process control documents) to ensure compliance with PWFA, or consider drafting a separate PWFA policy.
    • Train your people managers and HR to ensure they are aware of the broadened requirements under PWFA so that they understand how to recognize a request for accommodation under the PWFA.

For additional information, check out the EEOC’s summary of PWFA. The EEOC previously released the proposed PWFA regulations and published the final regulations on April 19. They will go into effect 60 days later, on June 18, 2024.

Employers should also be aware of many existing laws that protect pregnant employees, including the ADA, The Providing Urgent Maternal Protections for Nursing Mothers Act (the PUMP Act), and various state/local laws that require accommodation or required an employer to provide other protections and benefits.

 

This information is provided for informational purposes and should not be considered legal advice.

March 2024 Statutory Update

Click HERE to view and download the full Update

In this Update:

Family and Medical Leave Updates

Maryland Family and Medical Leave Insurance (MD FAMLI) – resources, draft regulations, potential program delay

Massachusetts Paid Family and Medical Leave (MA PFML) – amended “top-off” guidance, new reporting requirement    

Minnesota Paid Leave (MN PL) – reporting requirement postponed

New Jersey Family Leave Act (NJ FLA) – new resource

Oregon Paid and Unpaid Family and Medical Leave (PLO and OFLA) – updated PLO regulations, OFLA and PLO  amendments

 

Accrued Paid Leave Updates

Cook County, IL Paid Leave – regulations, updated resources

Bloomington, MN Earned Sick and Safe Time – updated resources

St. Paul, MN Earned Sick and Safe Time – updated resources

Duluth, MN Earned Sick and Safe Time – repeal

New York City Earned Safe and Sick Time – amendment   

Washington Paid Sick Leave – updated regulations

 

Other News

COVID-19: Updated CDC Guidance

           Implications to New York COVID-19 Sick Leave

 

Important Dates

March

Illinois Paid Leave for All Workers – notice to employees due March 31

Cook County, IL Paid Leave – notice to employees due March 30

 

July

Chicago, IL Paid Leave and Paid Sick Leave – effective July 1, resources    

New York City Workers’ Bill of Rights – new notice requirement July 1

Oregon Family and Medical Leave Act (OFLA) – mandatory benefit year change July 1

Vermont Family and Medical Leave Insurance – group plans available for July 1