Yesterday, Mayor Michael Nutter signed into law a bill
mandating that most Philadelphia employers provide paid sick leave to their
employees. It is anticipated that the law will provide this type of leave to
approximately 200,000 Philadelphia workers. Employers that already provide more
leave than the law requires will not need to make any changes. In addition, no
changes will be required for employees covered by a collective bargaining
agreement.
The law, which takes effect on May 3, 2015, requires
businesses to provide each covered employee with one hour of sick leave for
every 40 hours of work. Covered employees are defined as those who work at
least 40 hours annually in Philadelphia. Employees may accrue up to 40 hours of
sick time per year, unless the employer sets a higher limit. Unless the
employer provides at least 40 hours of sick time at the beginning of the year,
any unused time may be carried over to the following year, but the employee is
not entitled to take more than 40 hours of sick time in any year. Of course,
the employer can set a higher limit. Although the law refers to providing leave
based only on a calendar year, the interpretation of that new language may come
under question—Councilman Dennis O’Brien has made clear that the intent was to
allow the employer to provide leave based on any 12-month period, such as
basing it on the anniversary of the employee’s hire date.
The law applies to all employers with employees in
Philadelphia. Employers with fewer than 10 covered employees do not have to
provide paid sick leave, but must allow employees to take similar amounts of
unpaid leave. Certain workers, such as independent contractors, temporary
employees hired for less than six months, interns, and adjunct professors are
excluded.
The paid sick time may be used for:
An employee’s own mental or physical illness, need for a medical
diagnosis or treatment, or need for preventive medical care
Care for a family member with a mental or physical illness, need
for medical diagnosis or treatment, or need for preventive medical care
Absence necessary due to domestic abuse, sexual assault, or
stalking where the employee wishes to obtain medical attention, services from a
victim’s service organization, psychological or other counseling, relocation,
or legal services, either for himself or herself or a family member
The law allows an employee to request paid sick leave orally or in
writing. If an employee uses sick time for more than two consecutive days, the
employer may require reasonable documentation that the sick time is covered by
the law.
An anti-retaliation provision of the law prohibits employers from
taking action against an employee who exercised his or her rights under it.
Violations of the law must be reported to an agency to be designated by the
Mayor. Agency reporting and processing is mandatory before instituting a
private action.
Mandatory paid sick leave in Philadelphia has been seven years in
the making. Mayor Nutter rejected similar bills in 2011 and 2013, noting that
he was never against paid sick leave, but was concerned about instituting the
requirement during the economic downturn.
Employers in Philadelphia covered by the new law should review
their policies and procedures relating to sick leave to determine if they will
need to make changes to comply. Preparation for implementation may include
handbook and policy changes as well as development of a tracking system for the
accrual and use of paid sick time.
Ballard Spahr’s Labor and Employment Group
routinely helps employers update their policies and procedures to comply with
new laws. For more information, please contact Shannon D. Farmer at
215.864.8221 or farmers@ballardspahr.com, Carolyn A. Pellegrini at
215.864.8314 or pellegrinic@ballardspahr.com, or the member of
the Group with whom you work.
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