How to weave through the paid sick leave maze

Whether employers are looking to figure out mandated paid sick leave laws in their home state –or multi-state jurisdictional requirements, should their business cross state lines – global law firm Morgan Lewis says that a one-size-fits-all approach can be difficult to pull off.

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With mandatory paid sick leave laws in effect in eight cities and states lining the eastern and Pacific borders of the U.S., plus 23 jurisdictions with legislation currently introduced, the firm suggests that universal policies need to hit major points at the all state and local levels and follow regulations under the Federal Family and Medical Leave Act.

“It is very difficult to take a one-size-fits-all [direction] given all the nuances here,” says Corrie Fischel Conway, counsel within Morgan Lewis’ labor and employment practice in Washington D.C.

She notes that employers who have opted for the universal policy approach can develop rules that take all of the legal intricacies into account. Employers need to consider state and local and legal compliance, financial concerns and what their policies mean to attracting and retaining employees.

“For [them], what I’ve seen is essentially developing a policy that would be the most common to all the jurisdictions,” Conway says. “But I still think state addenda attached to that policy or a jurisdictional addenda will be necessary to really make sure you are complying with all the different requirements.”

Highlighting a need for these policies in the private sector, the National Partnership for Women & Families suggests that paid sick days can provide long-term cost savings. Workers who perform at less than full productivity levels may be costing employers $160 billion per year due to illness. The National Partnership states that paid sick days can allow for employers to recuperate faster and then return to being productive workers more quickly, according to an April 2013 fact sheet.

In a recent survey, the Society for Human Resource Management found that 52% of organizations offer paid time off programs to their full-time employees, two-thirds offer paid vacation plans and one-third offer paid sick leave plans. Paid personal leave options was only attributed by 22% of the surveyed HR professional group, however.

SHRM’s Paid Leave in the Workplace study notes that “workers today are placing increased importance on flexible scheduling and greater autonomy in managing their time away from the office.” In terms of child care benefits, HR managers also note that one in five organizations offer paid maternity leave and 16% afford paid paternity leave for workers.

When looking at standalone policies, Conway lists universal policies can include variations but are “more difficult to administer.”

“I think the danger that comes from all of this is making sure that it’s implementing properly, especially with the notice and certification,” she says, while noting that administrative and management training are recommended to novice benefit plan sponsors and employers.


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