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.

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.

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.