Running a business is becoming more expensive and complex for owners, and part of the problem is due to the growing number of state and local laws that mandate paid sick time. Despite these complications, more and more U.S. companies are actually offering paid sick leave to employees.
In 2017, the U.S. Dept. of Labor estimated that 68 percent of workers at U.S. companies had paid sick leave, up from 61 percent in 2015. The issue of paid sick leave has been raised in Congress recently. In July, lawmakers were split over how to pay for the time off. Democrats favor a law that would be funded through tax increases on employers, while Republicans want workers to pay for sick leave by delaying eligibility for Social Security. Given the disagreement, a federal law resolving the dispute does not appear likely before the midterm elections. However, many state and local laws allow workers to accrue sick leave based on the number of hours they work.
In Illinois, employers are not required to develop a specific sick leave policy or provide paid time off for illness. Illinois employers have the discretion to develop a policy that makes sense for them. However, they must do so in accordance with both federal and local laws.
When developing a sick leave policy, employers should be mindful of the requirements of the federal Fair Labor Standards Act (FLSA). For nonexempt employees (hourly or salaried employees who are subject to the FLSA’s overtime requirements), employers can “dock” the employee’s paycheck for the sick time. For exempt employees, however, employers can dock the employee’s salary for sick time only if the employer does so in accordance with a written plan or policy of providing compensation for such absences.
Additionally, the City of Chicago and Cook County have their own ordinances. Chicago amended the Chicago Minimum Wage and Paid Sick Leave Ordinance in June 2016 to require employers to provide paid sick leave for almost all employees who work within the geographic boundaries of Chicago. Cook County has a paid sick leave ordinance similar to the City of Chicago’s ordinance. The Cook County Earned Paid Sick Leave Ordinance, covers all Cook County private sector employers and their employees. But the ordinance does not apply to home-rule municipalities that enact laws of their own. As with the Chicago ordinance, the county ordinance excludes employees in the construction industry and subject to a collective-bargaining agreement.
While complying with the laws can be frustrating, there are benefits. When sick staffers stay home, they do not infect other employees. Paid sick time also lowers the chance that someone with an illness may be injured while at work. If your company wants to ensure its paid sick leave policy is appropriately implemented under all applicable laws, contact the attorneys at Rock Fusco & Connelly to review or draft your sick leave policy.