Compliance Corner

Compliance corner: Connecticut’s Paid Sick Leave expansion

Starting Jan. 1, 2026, Connecticut is turning up the volume on employee wellness with a major expansion of its Paid Sick Leave (PSL) law. If you’re an employer in the Constitution State (or you have remote workers based there), now is the time to prepare for a more inclusive, more protective leave landscape.

What’s changing?

Connecticut’s current PSL law applies to employers with 25 or more employees. Beginning in 2026, that threshold drops to 11 employees, and by Jan. 1, 2027, it will apply to all employers with at least one employee.

This phased rollout gives smaller businesses time to adapt, but make no mistake: The clock is ticking.

The nuts and bolts

Here’s what the updated law includes:

  • Accrual rate: Employees earn one hour of paid sick leave for every 40 hours worked.
  • Leave can be used for:
    • Personal illness or injury.
    • Caring for a sick family member.
    • Mental health days.
    • Safe time for survivors of domestic violence.

This expansion reflects a growing national trend toward holistic employee wellbeing and recognizing that health isn’t just physical, it’s emotional and situational, too.

Why it matters for payroll

This isn’t just an HR issue; it’s a payroll priority. Here’s why:

  • Accrual tracking must be accurate and compliant.
  • Leave balances must be visible and accessible to employees.
  • Payout rules (especially at termination) must be clearly defined.
  • Multistate employers need to ensure Connecticut-specific compliance.

What you should do now

  1. Audit your head count: If you’re hovering near the 11-employee mark, start planning now.
  2. Train your managers: They’ll be the first line of communication when employees request leave.
  3. Revise your employee handbook: Include the new PSL policy and make it accessible.

Don’t wait for 2027

Even if you’re under the 11-employee threshold today, preparing early gives you a competitive edge. Offering PSL now can boost recruitment, retention and morale, especially in a tight labor market.

Key dates to remember

DateWhat happens
Jan. 1, 2026Law applies to employers with 11+ employees
Jan. 1, 2027Law applies to all employers

For more information, please visit: Connecticut Paid Sick Leave Law – Legislative Report (2025-R-0016).