Paid Sick Leave:

The proposed legislative updates to the Earned Sick Time Act (ESTA) aim to clarify and streamline implementation for businesses while balancing employee rights. The key changes proposed include:

House Version (HB 4002):

• Eligibility and Exemptions: Limits eligibility to exclude independent contractors, out-of-state employees, seasonal workers (25 weeks or less), part-time workers (25 hours or less per week), and variable-hour employees. Exempts businesses with fewer than 50 employees.
• Documentation: Aligns with federal Family Medical Leave Act (FMLA) standards for health care provider documentation.
• Accrual Options:
  • Accrual Method: Employees earn 1 hour per 30 hours worked, capped at 72 hours per year, with an option for carryover. Employers may pay out unused time to avoid carryover.
  • Frontloading: Employers can provide 72 hours upfront, prorated for partial benefit years, with no carryover required.
• PTO Integration: Allows sick time to be part of a Paid Time Off (PTO) bank without requiring all PTO to be used under ESTA conditions.
• Administrative Clarifications: Defines rate of pay for sick time, employer notice policies, and disciplinary actions for noncompliance. Allows concurrent use with FMLA/ADA and payout of unused time upon separation.
• Private Right of Action: Eliminates this option and strikes the rebuttable presumption for employer violations.

Senate Version (SB 15):

• Retains accrual method with explicit frontloading as an alternative.
• Modifies carryover provisions to allow up to 288 hours with payment options for excess time.
• Introduces a 90-day waiting period for new hires.
• Retains more restrictive provisions on PTO integration and rate-of-pay calculations.
• Adjusts violation fines and reduces the claims filing window to one year.