Compliance

Compliance corner: Paid leave law changes across states

Several states have passed changes to their leave laws that will take effect in early 2025. Employers should review the details of these statutory changes and update internal policies accordingly. The following are some of the many changes that will go into effect in the first few months of next year: 

Washington sick leave expansion 

  • The Washington Legislature passed a bill to expand the state’s sick leave law in the following ways: 
    • It will expand the permissible scenarios for taking leave to include closure of a child’s day care or school for reason of a public emergency.  
    • The definition of “family member” now includes any person who regularly resides in an employee’s home with a relationship that creates an expectation of care. This expansion brings the sick leave law’s definition of family member in line with that of the state’s paid family and medical leave law.  
    • The definition of “child” now includes a child’s spouse.  
    • Similar changes will impact statutes covering transportation network companies like Uber and Lyft.  
  • These provisions will be effective Jan. 1, 2025. For more information about the new law and its effects, visit the following:

Connecticut paid sick leave law expansion 

  • Beginning Jan. 1, 2025, this expansion will lower the threshold headcount for employers subject to the law from 50 to 25 or more employees. The law will also expand to include all employees (excluding some limited exceptions) and not just the previous group known as “service workers.”  
  • The paid leave accrual rate will also accelerate from one hour of leave per 40 hours worked to one hour of leave per 30 hours worked.  
  • Justification for taking leave will also expand under the new law, and the definition of “family member” will expand as well.  
  • The new law will also require employers to provide notices to individual employees either at their time of hire or Jan. 1, 2025, whichever is later, and employers must put accrual balances on paystubs.  
  • There are numerous other changes to the law that are not mentioned here, and employers with any employees in Connecticut must familiarize themselves with all changes to ensure compliance before the new year.  
  • For more information about the new law and its effects, visit the following: 

Michigan paid sick leave  

  • After a court ruling in 2024, the state’s Earned Sick Time Act will replace the Paid Medical Leave Act, effective Feb. 21, 2025.
  • There is an employee headcount threshold of 10 employees or more in 20 workweeks, but that threshold only applies to a few of the law’s provisions; the vast majority apply to all employers with at least one employee in the state.
    • One difference is the leave usage capped per year – small employers may cap paid leave usage at 40 hours per year with 32 hours unpaid. All other employers must allow up to 72 hours of paid leave annually.  
  • The accrual rate for ESTA is one hour for every 30 worked, and there is no accrual cap. All accrued leave must carry over year to year.  
  • There are a host of notice and documentation requirements, including the requirement to post the state’s paid sick leave poster and provide notice of rights to all employees.  
  • This represents a comprehensive change to the paid leave landscape in Michigan, and employers should implement any changes required to comply with the law’s provisions now.  
  • For more information about the new law and its effects, visit the following: 

New York prenatal leave  

  • Earlier this year, New York enacted a law requiring employers to provide up to 20 hours of paid prenatal leave per year. Employees can use leave hours for health care services related to their pregnancy.  
  • The prenatal leave is entirely separate from any other mandatory paid leave and cannot count against an employee’s other accrued leave.  
  • The law is effective Jan. 1, 2025. 

Delaware and Maine to require leave payroll deductions 

  • Maine’s paid family and medical leave program will require employers to start payroll withholdings and quarterly wage reports.  
  • The withholding amount for employers with 15 or more employees is 1% of wages, half of which may be deducted from employees. The amount for employers with fewer than 15 employees is 0.5% of wages, and the entire amount may be deducted from employees.  
  • Delaware’s paid family and medical leave insurance program will require employers with 10 or more employees to begin payroll deductions in the following amounts: 0.32% for parental leave, 0.40% for medical leave and 0.08% for family caregiver/qualified exigency leave; employers with 10-24 employees are only required to deduct the parental leave portion. Employers may require employees to pay up to 50% of the total deduction.  
  • Both deduction requirements will begin Jan. 1, 2025.  
  • For more information about the new law and its effects, visit the following: 

This material is provided for informational purposes only and is subject to change. It is not intended to constitute legal advice. Recipients should consult with counsel before taking any actions based on the information contained within this material.