Sick Leave: Laws, Policies, and Best Practices

A policy that provides employees with paid or unpaid time off from work due to illness, injury, or medical appointments.
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Sick leave is time off from work when employees are ill, injured, or need to attend medical appointments. Unlike vacation or personal days, sick leave addresses health needs and in many jurisdictions, it's not just a nice benefit but a legal requirement.

No Federal Sick Leave Requirement (Usually)

Federal law doesn't require private employers to provide paid or unpaid sick leave for most situations. The exception is FMLA, which covers serious health conditions but only provides unpaid leave and only for eligible employees.

That means your restaurant with 20 employees has no federal obligation to give your servers paid sick days. However, before you celebrate, check your state and city laws. Many have filled this gap.

State and Local Paid Sick Leave Laws (2025)

Major Cities with Paid Sick Leave Laws

Major U.S. cities often have their own sick-leave ordinances, even if the surrounding state has no law. Examples include:

Each of the above laws is enforced by the respective city or state agency (labor department or civil rights commission) and is subject to updates or amendments by the city council or state legislature.  All citations above are to official summaries or statutes reflecting the law as of 2025, but use the links to check your most recent obligations.

Your coffee shop with locations in Philadelphia and Harrisburg must provide paid sick leave in Philadelphia but not in Harrisburg (unless you choose to). Multi-location businesses need to track requirements by jurisdiction.

Common Sick Leave Law Features

While details vary, most mandated sick leave laws share common elements:

Accrual-Based

Employees earn sick time as they work. The most common rate is 1 hour of sick leave for every 30 hours worked. A full-time employee (40 hours per week) earns about 1.3 hours of sick time weekly, totaling roughly 69 hours (8.6 days) annually.

Caps on Accrual and Use

Most laws cap both how much you can accrue and how much you can use annually:

Your retail employee in California might accrue 60 hours over 18 months, but she can only use 24 hours in any single year. The remaining 36 hours carry over for future use.

Broad Permitted Uses

Sick leave laws typically allow use for:

Employee's own illness or injury: Your warehouse worker has the flu and can't work.

Preventive care: Annual checkups, dental cleanings, flu shots.

Family member care: When your line cook's kid has strep throat and needs to stay home from school, he can use sick leave to care for her.

Domestic violence, sexual assault, stalking: Many laws allow sick leave for victims to seek medical attention, counseling, or legal assistance.

Public health emergencies: When the health department says "stay home if you're sick," employees need sick leave to comply.

No Verification for Short Absences

Most laws prohibit requiring a doctor's note for absences of three days or fewer. Requiring documentation for a one-day cold is both burdensome and costly for employees.

Creating a Sick Leave Policy

Even if not legally required, offering sick leave makes business sense. Sick employees spread illness and perform poorly. Sending them home protects everyone.

Define Eligibility

All employees: Most laws cover full-time, part-time, and temporary workers.

Waiting period: Some laws allow a 90-day waiting period before employees can use accrued sick leave (though they accrue from day one).

Your salon might state: "All employees begin accruing sick leave on their first day of employment. Employees may use accrued sick leave after 90 days of employment."

Specify Accrual Rate

Match legal requirements: If your state mandates 1 hour per 30 hours worked, that's your minimum.

Be more generous: You can always exceed legal requirements. Offering 1 hour per 25 hours worked gives employees more sick time.

Set Caps

Accrual cap: Prevents unlimited accumulation. Common caps: 48 to 80 hours.

Annual use cap: Limits use per year. Common caps: 40 to 48 hours.

Your hotel policy might state: "Employees accrue 1 hour of sick leave for every 30 hours worked, up to a maximum balance of 64 hours. Employees may use up to 40 hours of sick leave per year."

Explain Permitted Uses

Be clear about what sick leave covers:

"Sick leave may be used for:

Address Documentation

Most laws prohibit requiring doctor's notes for short absences:

"The company does not require medical documentation for sick leave absences of three days or fewer. For absences of four or more consecutive days, employees may be asked to provide reasonable documentation of the need for leave."

Clarify Carryover

Unlimited carryover: Unused sick leave carries forward indefinitely (up to accrual cap).

Limited carryover: A set amount carries over; excess is forfeited.

Use-it-or-lose-it: All unused sick leave is forfeited annually (check if legal in your state).

California prohibits use-it-or-lose-it for accrued sick leave. Your sick leave policy there must allow carryover.

Sick Leave vs. PTO

Some employers use PTO banks instead of separate sick leave. One bank covers vacation, sick days, and personal time. Is this legal where sick leave is mandated?

Generally yes, if: Your PTO policy provides at least as much time as required sick leave, accrues at the same rate or faster, and can be used for the same purposes.

Watch out for: PTO policies that restrict when time can be used (blackout dates, advance notice requirements) might not satisfy sick leave laws, which allow immediate use for illness.

Your restaurant offers 80 hours of PTO annually that employees can use for any reason, accruing at 1 hour per 25 hours worked. This likely satisfies California's sick leave law (which requires only 24 hours annually) as long as employees can use PTO immediately when sick.

Managing Sick Leave Operationally

Expect the Unexpected

Sick leave is unpredictable. Your coffee shop server wakes up with a migraine and can't work her opening shift. You need coverage fast.

Solutions:

Don't Punish Sick Leave Use

It's illegal in most jurisdictions to:

Your retail store can't have a "three absences and you're fired" policy if those absences are protected sick leave.

Track Accrual Accurately

Miscalculating accrual creates compliance problems. You need systems that:

Use software that automatically calculates sick leave accrual based on hours worked and displays current balances to employees for total transparency.

Communicate Clearly

Employees should know:

Your employee handbook should explain sick leave clearly. Posting sick leave rights (required in many jurisdictions) reminds employees of their rights.

Common Sick Leave Mistakes

Requiring doctor's notes for every absence: Illegal in many places and burdensome even where allowed.

No carryover: Use-it-or-lose-it policies violate laws in several states.

Denying sick leave for family care: Most laws explicitly allow using sick leave to care for sick family members.

Retaliating: Disciplining employees for using sick leave is illegal where sick leave is mandated.

Not tracking accrual: Employees in jurisdictions with sick leave laws are entitled to specific accruals. "We don't track it; just take a day when you need it" isn't compliance.

Sick Leave During COVID-19 and Beyond

The pandemic highlighted the importance of sick leave. Employees without paid sick time came to work sick because they couldn't afford to miss a shift, spreading illness.

The federal Families First Coronavirus Response Act (FFCRA) temporarily required paid sick leave for COVID-related absences, but that mandate expired in 2020. Some states and cities extended or created permanent sick leave requirements in response.

Moving forward, offering adequate sick leave isn't just about compliance. It's about public health and workplace safety. Your grocery store doesn't want cashiers with contagious illnesses touching customers' food.

Interaction with FMLA

Sick leave and FMLA can run concurrently:

Your warehouse employee breaks her leg and is out for 6 weeks. This qualifies as a serious health condition under FMLA. She uses 40 hours of accrued sick leave (paid), then the remaining 4 weeks are unpaid FMLA.

Employees can be required to use accrued sick leave during FMLA, though some state laws prohibit this. Check your jurisdiction.

The Business Case for Sick Leave

Even if not required by law, offering sick leave benefits your business:

Reduces illness spread: Sick employees infect customers and coworkers. One cook with the flu can spread it to your entire kitchen staff.

Improves productivity: Sick employees work slowly and make mistakes. Your server with a bad cold forgets orders and provides poor service.

Boosts morale: Employees appreciate not having to choose between income and health.

Aids recruitment: In competitive labor markets, benefits matter. "We offer paid sick leave" attracts better candidates.

The Bottom Line

Sick leave is increasingly required by law and universally beneficial. It protects public health, supports employees, and improves operations. Whether mandated or voluntary, implementing clear sick leave policies demonstrates you value employees' health and wellbeing.

Track accrual accurately, communicate clearly, and apply policies consistently. When your employees know they can stay home when sick without financial penalty or job risk, everyone benefits.

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