What is sick leave pay?

Sick leave pay allows employees to be compensated when they take time off from work to attend to their health needs. Employees typically use sick leave to get sick, get injured, or visit a dentist or doctor. Many company policies and state laws allow employees to use paid sick leave to care for themselves or a close family member.

Paid vs. unpaid sick leave

Employers may offer their employees paid or unpaid sick leave, depending on the circumstance. The difference between the two is compensation. Paid sick leave also comes with a financial benefit, so employees may worry less about losing a day's pay to take the necessary time off. Unpaid sick leave is permission to take time off for health reasons, but without pay.

Is FMLA paid or unpaid?

The Family  and Medical Leave Act (FMLA) is separate from  a company's  paid leave (PTO)  policy. This federal law  provides guidelines on unpaid, job-protected leave for medical and family reasons  . Covered employers may require eligible employees to  use paid sick time as part of their FMLA-protected leave period. Employees  may voluntarily use some or all of the paid vacation hours  provided by their employer during this absence. 

As long as the employee’s leave request  complies with all of the FMLA guidelines  – and they were not laid off due to a reduction in staff or terminated for misconduct – the employee is entitled to have their job, pay, and benefits restored upon their return.

Can an employer refuse to grant sick leave?

According to the U.S. Equal Employment Opportunity Commission (EEOC),   employers can technically refuse to grant sick leave if the request would cause significant hardship or expense . Qualified FMLA requests are an exception to this rule and must be honored.

However, some states have different sick time laws. If your jurisdiction requires businesses to provide paid or unpaid sick leave to eligible employees, the employer cannot deny the request. The only exception is if the employee does not have a qualifying reason according to applicable laws.

Do you have to pay employees sick leave?

There is no federal legal requirement for companies to provide paid sick leave, but it does help promote work-life balance and employee satisfaction. Paid sick leave is more common in the public sector than in private companies. For example,  92% of state and local government employees  receive paid sick leave, while 78% of private sector employers offer this benefit.

Do you get paid for sick days as a contractor or part-time employee?

While many sick pay laws cover part-time employees, most  do not cover independent contractors  . Exceptions usually occur when the contract explicitly allows the employee to take sick leave or the employer  has misclassified the employee  .

Is sick leave paid in every state?

No, not every state mandates paid sick leave. In states that do, the laws typically contain requirements about accrual rates, business size, eligibility, and other factors. Also, some rules are explicitly focused around sick leave, while others allow general PTO. As of 2023,  17 states and Washington, D.C.  have paid leave laws:

• Arizona
• California
• Colorado
• Connecticut
• I
• Maryland
• Massachusetts
• Michigan
• Minnesota (effective 1/2024)
• new Jersey
• new Mexico
• New York
• Nevada
• Oregon
• Rhode Island
• Vermont
• Washington

Additionally, many cities and counties have created their own rules. For updates on sick-time laws and related topics,  check the National Conference of State Legislatures (NCSL)  or your state/local government website.

COVID-19 Sick Leave Laws

In response to the COVID-19 pandemic, the U.S. Department of Labor (DOL)  established the Families First Coronavirus Response Act (FFCRA)  . This law required certain private and public employers with fewer than 500 employees to offer paid sick leave or expanded family and medical leave for reasons related to COVID-19. The FFCRA expired on December 31, 2020.

The American Rescue Plan Act (ARPA) encouraged businesses  to continue providing paid leave by extending the employer tax credits offered under the FFCRA through September 30, 2021.  However, these provisions have also expired.

Eligible employees who are sick with COVID-19 may be entitled to leave under the FMLA, state law, or company policy (just like other illnesses). Additionally, some areas have adopted laws for sick time during public health emergencies, providing coverage for future crises.

How many sick days do companies provide on average?

On average, civilian employees receive eight days of paid sick leave per year.   Private industry employees receive an average of seven days, while state and local government employees typically receive 11 days after one year and 12 days after five years.

Research also shows that access to paid sick leave  is more prevalent among higher earners  , meaning many lower-income workers must choose between taking leave and getting paid for that day.

How many sick days do you get under FMLA?

According to the FMLA  , eligible employees receive up to 12 work weeks of unpaid leave in a 12-month period if they or a member of their immediate family has a medical condition that requires attention. Alternatively, they can take up to 26 weeks of job-protected military caregiver leave in a 12-month period to care for a covered soldier suffering from an injury or illness.

How to get sick leave?

In 2021, 69% of all civilian employees with paid sick leave   received a certain number of days. In other cases, sick leave accrues based on time worked. While sick-time accrual rates vary by company,  some states  also set minimum requirements.

Depending on the company's sick leave policy or state laws, unused vacation time can sometimes carry over to the next year. However, this time may be limited to a certain number of hours/days. For example,  California's paid sick leave law  allows employers to limit carryover leave to 40 hours or 5 days per year (effective 1/2024).

What should you include in your sick leave policy?

Although company cultures and state laws vary, we recommend that employers  include the following information in  their paid sick leave policies :

• PTO accrual rate:  The policy should detail how many hours of sick leave pay employees receive after working a certain number of hours.
• Rollover rules:  If employees can carry over some or all of their accrued sick leave to the next year, explain how this works.
• Benefits Waiting Period/Eligibility:  This should also address whether PTO accrual begins on the employee’s date of hire or after a certain period of employment.
• Use of paid leave:  This must clearly state the circumstances that are covered under paid sick leave (personal illness, illness of an immediate family member, medical/dental appointment, etc.).
• Sick Leave Laws:  You should provide links to applicable federal and state laws that your employees can refer to for any further questions.
• The process for requesting time off for vacation:  Employees should understand how to request sick leave. For example, you want them to notify their supervisors via email or phone as soon as possible and   ask them to document their sick days in your HR software platform .