PAID SICK LEAVE ACT
foreseeable sick leave on certain days or
where it “unduly disrupts” the employer’s
operations.
Employers may require “reasonable
documentation” for absences of three or
more days, so an employer may not demand
supporting documentation—or proof —
for an employee’s use of fewer than three
consecutive days unless the employee uses
earned sick leave on a prohibited date.
Meanwhile, employers must post a
notification of employee rights under the
Act in a conspicuous place. Employers
also must provide written notice to
their employees of their rights under the
Act, including within 30 days after the
department has issued a model notice, at
the time of hiring and upon request by
an employee. Employers also must track
their employees’ hours worked, earned sick
time accrued and sick time used, and must
maintain those records for five years under
the Act.
Employer compliance with these
requirements will be subject to audit by
the New Jersey Department of Labor and
Workforce Development.
EMPLOYERS WITH PTO POLICIES
Employers having existing paid time
off (PTO) policies that satisfy the Act’s
minimum requirements and include
personal days, vacation days, and sick days
will comply with the Act if:
• employees may use paid time off for the
reasons stated in the Act; and,
• the PTO is accrued at a rate equal to or
greater than the rate required by the
Act.
Employers should review their PTO
policies to confirm their compliance.
HOW CAN SICK LEAVE BE USED?
The Act includes a list of reasons
employees may use earned sick time. The
list includes, but is not limited to, the
following:
• the medical needs of the employee or
the employee’s family member(s);
• absences, treatment, counseling, and
other matters relating to or arising
from the employee, or the employee’s
family member, being a victim of
domestic or sexual violence;
• closure of an employee’s workplace,
school, or childcare due to a public
health emergency; or,
• time needed by the employee to attend
a school-related conference, meeting,
function, or other event.
The most important takeaway here for
employers is the recognition that the sick
leave law is not limited to an employee’s
use for “sick” leave.
PAYOUT FOR TERMINATED
EMPLOYEES
Unless otherwise required by company
policy, employment contract, or collective
bargaining agreement, the Act does not
require that unused accrued sick leave be
paid to an employee at separation.
PENALTIES FOR NONCOMPLIANCE
Employers should fear enforcement under
the Act. Employers can be prosecuted in
different ways and for different reasons.
This includes, but is not limited to,
private rights of action by employees for
discrimination, retaliation, and violations
of the Act and for recordkeeping violations.
implement an accrual or annual method
of earning sick leave, the applicable
benefit year and the increments in which
employee leave may be taken.
Additionally, employers should also
prepare to post the appropriate notice
in their workplace and deliver the
appropriate disclosures to their employees.
When in doubt, please consult with your
attorney to ensure compliance with the
Act.
An employer that violates the Act will
be subject to the penalties and remedies
afforded to employees under the New
Jersey Wage and Hour Law, which includes
monetary damages and attorneys’ fees and
costs, plus liquidated damages in an amount
equal to the unpaid leave.
HOW SHOULD EMPLOYERS PREPARE
FOR PAID SICK LEAVE?
At this point, the Act is still clear as mud.
Many questions are still unanswered, and
this summary is merely the tip of the
iceberg. Given the potential exposure to
liability and other consequences arising
from violations and lack of compliance,
employers should revisit their employee
handbooks and review their employee
PTO, attendance, leave, and disciplinary
policies.
Employers also should reevaluate their
recordkeeping requirements to confirm
compliance with the Act and should advise
their managers and supervisors of the
change in the law and train/educate them
accordingly. Employers also have several
decisions to make, including whether to
BY: BARRY E. FIELDS
VICE PRESIDENT OF EMPLOYEE BENEFITS
JGS INSURANCE
Barry Fields has over 26 years of employee
benefits experience advising clients in a
wide range of industries, professional and
industrial, public and private, throughout
the United States and worldwide.
Barry specializes in providing full-service
benefits consulting to clients including
program design, compliance, plan
funding, underwriting, wellness programs,
employee communications, benefits
administration, employee advocacy and
the use of effective strategies in benefits
management.
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