The President’s Order, linked here, provides that employers that contract with the federal government on or after January 1, 2017, must provide the ability for their employees to earn up to at least 7 days of paid sick leave annually. The Order states that federal departments shall have in their eligible contracts a clause that, as a condition of payment, all employees in the performance of the contract earn not fewer than 1 hour of paid sick leave for every 30 hours worked. That roughly equates to about 1.3 hours of paid sick leave per 40 hour work week.

Accrued paid sick leave under the Order will carry year over year and be reinstated for employees who are separated but rehired by a covered contractor within 12 months. Leave shall be provided when the employee makes an oral or written request for leave, which includes the expected duration of the leave. Further, in cases where leave is foreseeable, the employee shall provide at least 7 calendar days of advance notice, and in other cases, provide notice “as soon as is practicable.” Paid sick leave can be taken for an absence resulting from a physical or mental illness, diagnosis or care from a physician, care for a specific family member or other individual (described broadly as someone who has the “equivalent of a family relationship”), and for victims dealing with the effects of criminal violence including sexual assault and domestic violence.

Employers have some (limited) rights under the Order. For instance, they may require a certification from a health care provider for paid sick leave used for illness suffered by themselves or family members, but only for leave that lasts for 3 or more consecutive workdays. Such certification must be provided no later than 30 days after the first day of leave. For those taking leave to deal with the effects of various criminal acts of violence and are also out for 3 or more consecutive days, the employer may require certification from “an appropriate individual or organization with the minimum necessary information establishing a need for the employee to be absent from work.” An employer should understand that it must not disclose any verification information and “shall maintain confidentiality about the domestic violence, sexual assault, or stalking” revealed by the certification unless the employee consents or when disclosure is required by law.

While the California and Massachusetts laws are very similar, there are some notable differences regarding sick leave accrual, use, carryover, and recordkeeping. Neither state requires payout of accrued but unused sick time upon separation of employment.

Employers that already provide employees with paid time off, paid vacation, or other paid leave benefits may be able to use these pre-existing plans to satisfy their obligations under the paid sick time laws, provided certain criteria are met.

Before July 1, employers with employees in California or Massachusetts should review their paid leave policies and ensure they are prepared to comply with the new laws. Moreover, each state’s paid sick leave law requires that employers give their employees notice of these new laws, either through on-site postings or individual notices. The California Division of Labor Standards Enforcement and the Massachusetts Attorney General’s Office have provided template notices for this purpose.

The Philadelphia law, covering full-time, part-time, and some temporary workers working 40 hours a year, requires employers with 10 or more employees to provide one hour of paid sick leave for every 40 hours worked by an employee in the city, for a maximum accrual of 40 hours in a calendar year. Employers with fewer than 10 employees must provide employees with unpaid sick leave at the same rate. Employees denied paid sick leave will be entitled to the dollar amount equivalent to the paid sick time withheld, in addition to liquidated damages capped at $2,000 and attorney’s fee for any civil action. Other unspecified penalties may be sought by the city enforcement agency, which has yet to be designated by the Mayor’s Office.

As required by the ordinance, Philadelphia employers have just three short months to bring existing yet less generous policies into compliance and notify their employees of the new protections by the May 13, 2015, effective date. Notices can be distributed to employees (in English or other language spoken by at least 5% of the employees) or displayed on a poster to be prepared by the city and must include the amount of paid sick time to which employees are entitled, the terms under which leave can be used, the guarantee against retaliation, and the right to file a complaint regarding violations of the ordinance. An employer’s failure to provide such notices is subject to a civil penalty of up to $100 per offense.

Unlike New York City’s Earned Sick Time Act, the Philadelphia law expands permitted uses beyond simply diagnosis, care, or treatment of an existing health condition and preventative care of an employee or a “family member,” but also allows use of paid sick time for issues relating to the employee being a victim of domestic violence, sexual assault, or stalking. Also unlike its New York counterpart, which applies to union employees subject to bargaining agreements entered into after its April 2014 effective date absent a waiver to the contrary, employees covered by a “bona fide” collective bargaining agreement are not covered under the Philadelphia ordinance.

Kelley Drye will continue monitoring and updating you on the developments in this area, as enactment efforts are still underway in a number of states and cities across the country. In the meantime, Philadelphia employers and those with operations in multiple jurisdictions should reach out to Kelley Drye for any questions or guidance on complying with the myriad of laws across jurisdictions. On the federal level, the Healthy Families Act bill was reintroduced in the U.S. Congress, hoping to provide most private-sector employees with up to seven days of paid sick leave per year. Stay tuned.