Executive Summary
Overview: Massachusetts Attorney General Maura Healey has now announced that a safe harbor will be provided for employers that have sufficient existing paid time off policies and gives such employers an additional six months—that is, until January 1, 2016—to fully implement the new earned sick time law.
Coverage: Clients with employees working in Massachusetts.
Effective Dates: In effect.
Action Required: Contact your HR Business Partner as needed for additional guidance.
The Details
As previously reported, the voters of Massachusetts on November 4, 2014 approved a ballot measure to provide earned paid sick leave to employees. Consequently, public and private employers with more than 10 employees will be required to allow all employees who work in Massachusetts to accrue and use up to 40 hours of paid sick leave per calendar year. Employers with 10 or fewer employees will be required to allow their employees to earn and use up to 40 hours of unpaid sick leave. This requirement goes into effect July 1, 2015.
However, it is important to note that employers that already provide their employees paid time off under a paid time off, vacation, or other paid leave policy are not required to provide any additional paid sick time under this law, provided they permit employees to use at least 40 hours per calendar year for the purposes covered under the law. Furthermore, this law does not override any employer’s obligations under any collective bargaining agreement, contract, or benefit plan with more generous provisions.
The New Safe Harbor
Massachusetts Attorney General Maura Healey has now announced that a safe harbor will be provided for employers that have existing paid time off policies and gives such employers an additional six months—that is, until January 1, 2016—to fully implement the new earned sick time law. Under this safe harbor provision, for the period from July 1 to December 31, 2015, any employer that has a paid-time-off policy in existence as of May 1, 2015, that provides employees the right to use at least 30 hours of paid time off during the calendar year 2015 will be considered in compliance with the new law with respect to those employees and to any other employees to whom the use of at least 30 hours of paid time off under the same conditions is extended. Specifically Attorney General Healey stated the following:
For the period July 1 to December 31, 2015, any employer with a paid time off policy in existence as of May 1, 2015, providing to employees the right to use at least 30 hours of paid time off during the calendar year 2015 shall be in compliance with the law with respect to those employees and to any other employees to whom the use of at least 30 hours of paid time off under the same conditions are extended.
To remain in compliance, any paid time off, including sick time, used by an employee from July 1 to December 31, 2015, must be job protected leave subject to the law’s non-retaliation and noninterference provisions. In all other respects, during this transition period, the employer may continue to administer paid time off under policies in place as of May 1, 2015.
On or before January 1, 2016, all employers operating under this safe harbor provision must adjust their paid time off policy to conform to the earned sick time law.
For more information on the Massachusetts law, the new safe harbor and recently proposed regulations please click here.
As always, please contact your HR Business Partner if you have any questions.