New York State has passed a new Paid Sick Leave Law with accruals beginning on September 30th, 2020, and benefits payable January 1, 2021. This new law is different and separate from the other paid sick leave benefit, including the PFL enhancement and COVID rules. The amount of benefit provided to eligible employees is based on company size. Here's the breakdown:
4 or fewer employees and less than $1 million in net income, Employers are required to provide up to 40 hours of unpaid sick leave in a calendar year.
4 or fewer employees and more than $1 million in net income, Employers are required to provide up to 40 hours of paid sick leave in a calendar year.
5-99 employees require Employers to provide 40 hours of paid sick leave to employees, regardless of business income.
100+ employees require Employers to provide 56 hours of paid sick leave to employees, regardless of business income.
As described above, the new leave provisions, which amend the NY Labor Law, will require New York employers of all sizes to provide a certain amount of paid or unpaid sick leave to be used for certain medical and employee safety-related reasons.
What If I Already Have A Sick Leave Policy?
If you already have a sick leave policy in place which covers these requirements, you will be in compliance. The benefit time listed above is simply the minimum requirements so this will not need to be added onto an existing policy.
Use of Sick Leave
The law does provide certain restrictions on the use of sick leave. Specifically:
- Employers may set a reasonable minimum daily increment for the use of sick leave of no greater than four (4) hours; and
- Unused sick leave does not need to be paid out upon an employee’s separation or termination of employment.
Upon return from sick leave, the law requires employees to be restored to the same position as held before the leave with the same pay and terms and conditions.
You can learn more about the Paid Sick Leave and all other benefit programs New York State offers by clicking here.
*Disclaimer: This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. Computer Payroll and its employees are not legal attorneys. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.