Sick Leave Policy Changes

Small business owners will on July 1, be faced with new regulations regarding sick time rules.  Passed by voters in a ballot measure last fall, the law requires that companies with 11 or more employees give workers up to 40 hours of paid sick time a year.  Those with fewer than 11 may offer it unpaid.  The law applied to all employees, including part-time and seasonal workers.  Seasonal workers such as landscapers to restaurant staff may be greatly impacted by the new law.  The full details of the law are not due until June 19, which only gives employees two weeks to accommodate the changes.  Smaller companies may now need to think about newer ways to track time which may mean different or more sophisticated payroll systems.  The original intent of the legislation was to help single mothers and parents worried about losing their jobs. or a day’s pay, if they have to take a child to a doctor’s appointment.  This may be legislations where the current provisions of the bill do not meet the unique needs of the employers.  Employers also need to think about sick time accruals.  The law requires that workers get an hour of sick time per 30 hours worked, including overtime.  Most companies calculate sick time per pay period.  Some companies lump sick and personal time together.  The law now requires that they track them separately.  The law also provides for sick time to be carried over with one major adjustment for seasonal operations–such as summer ice cream scoopers who work a few days a week–from carrying over sick time if they don’t return to work for more than six months.   For many small business owners this new legislation could have a huge impact on overall profitability.

 

Celia Couture

Celia Couture is a business coach, author, keynote speaker and management consultant that shows companies how to make more money while working fewer hours. She specializes in executive training programs and succession planning for family owned businesses.