Beth Baerman Communications Director Attendance on Demand, Inc.

Transcription

1 #PAYCON Beth Baerman Communications Director Attendance on Demand, Inc. 1

2 #PAYCON Paid Sick Leave: From Perk to Mandate 2

3 Speakers Beth Baerman Director of Communications & Compliance Attendance on Demand, Inc. Laura Lough, Esq. Director of Publications, APA Lia Coniglio, Esq. Manager, State Payroll Information Resources, APA #PAYCON 3

4 Caveats Information based on Our understanding of laws and evolving legislative efforts Case law, which is evolving Not legal advice 2018 C O N G R E S S 4

5 AGENDA Paid sick leave laws: background Elements of legislation Case study: California Sick leave policy considerations Tools for automation Your to-do list #PAYCON #PAYCON 5

6 #PAYCON Paid Sick Leave Laws 6

7 Voter Appeal: Fairness Workers with Paid Sick Leave 93% 46% Managers Service Workers 2018 C O N G R E S S 7

8 Voter Appeal: Fairness Workers with NO Paid Sick Leave 70% 80% Low Wage Workers Restaurant Workers 2018 C O N G R E S S 8

9 Does It Impact Me? Workers without paid sick leave 1.5 times more likely to report to work sick 3 times more likely to forgo medical care for themselves C O N G R E S S 9

10 Does It Impact Me? 2018 C O N G R E S S 10

11 Slow Start 2006 San Francisco 2011 Connecticut 2008 Washington, DC & Milwaukee 2018 C O N G R E S S 11

12 Gaining Momentum 2014 and states 7 cities 1 county 2016 and states 10 cities 1 county 2018 C O N G R E S S 12

13 2018 So Far January 1 February 11 July 1 October 1 October 29 State of Washington State of Maryland State of Rhode Island Austin, TX State of New Jersey 2018 C O N G R E S S 13

14 Paid Sick Leave Jurisdictions 2018 C O N G R E S S 14

15 Jurisdictions 2018 C O N G R E S S 15

16 Jurisdictions 2018 C O N G R E S S 16

17 Statewide Paid Sick Leave Campaigns 2018 C O N G R E S S 17

18 If at First You Don t Succeed Connecticut Introduced 2008 Died 3 times in legislature Enacted 2011 Philadelphia 2011 and 2013 mayor vetoed Signed C O N G R E S S 18

19 Federal Level Executive order for federal contractors Signed Labor Day 2015 Effective 2017 Legislation Healthy Families Act Workflex in the 21 st Century Act 2018 C O N G R E S S 19

20 If at First You Don t Succeed Federal Level Initiatives in 2005, 2009 Healthy Families Act in 2011 Reintroduced 2013, 2015, C O N G R E S S 20

21 Kin Care Laws 2018 C O N G R E S S 21

22 Preemption Laws 2018 C O N G R E S S 22

23 Identifying Compliance Changes Legislation and ordinances Federal, state, and local level Getting copy of local ordinance may be challenging Can look for news/law firm articles for additional information 2018 C O N G R E S S 23

24 Identifying Compliance Changes Rules and regulations May explain/clarify original law or ordinance State/locality may issue draft copy first Employers can submit comments on draft 2018 C O N G R E S S 24

25 Identifying Compliance Changes Court decisions Can impact when or if law will take effect Check to see if decision is appealed law may be put on hold until final decision Opinion letters, frequently asked questions Guidance can help employers with compliance questions 2018 C O N G R E S S 25

26 Federal Level Impact of Trump Administration No federal action so far Budget includes paid parental leave proposal States, cities move forward 2018 C O N G R E S S 26

27 Where Is It Coming From? Grass roots Top down Sideways 2018 C O N G R E S S 27

28 #PAYCON Elements of Legislation 28

29 Elements of Legislation Who Eligibility Employer size Employee work in jurisdiction Exclusions Industries Unions 2018 C O N G R E S S 29

30 Elements of Legislation How Much Accrual Accrual rate Most common is 1 hour per 30 hours worked Start at/after hire Yearly cap 2018 C O N G R E S S 30

31 Elements of Legislation - How Used Usage Yearly cap Use increment Reasons o Definition of family o Purpose of time off 2018 C O N G R E S S 31

32 Elements of Legislation - How Paid Rate of pay Regular rate of pay Worked rate Weighted average previous pay period Weighted average current work week Weighted average full pay periods previous 90 days 2018 C O N G R E S S 32

33 Elements of Legislation - How Managed Balance Frontload Carryover Ceiling Reinstatement Employee reporting 2018 C O N G R E S S 33

34 #PAYCON California Case Study 34

35 Interplay Between State and Local Requirements State Cities Private sector Federal 2018 C O N G R E S S 35

36 Who s Covered Employers 1 or more employees Employees Working 30 days/year in California for same employer Even if they live outside California Even if employer is outside California 2018 C O N G R E S S 36

37 Excluded Groups Flight crews with comparable PTO Collectively bargained employees Comparable PTO Certain conditions 2018 C O N G R E S S 37

38 Definition of Family Spouse, children, parents Grandparents/grandchildren Siblings Registered domestic partners 2018 C O N G R E S S 38

39 Paid Sick Time Accrual Beginning at hire date 1 hour per 30 hours worked Accrue up to 48 hours Available for use on 90th day of employment 2018 C O N G R E S S 39

40 Accrual Alternative Front load 24 hours Beginning of each year Calendar Hire anniversary Fiscal year 2018 C O N G R E S S 40

41 Usage Minimum 2 hours Capped at 3 days or 24 hours per year Purpose Illness, treatment, diagnosis, preventative care for employee or family member Safe time for employee 2018 C O N G R E S S 41

42 Carryover Balance carries over to new year if accrued Balance reinstated for rehires within 1 year 2018 C O N G R E S S 42

43 Rate of Pay Hourly rate Different rates of pay, piece rate, commission pay Regular rate during week (blended rate) Blended rate during pay periods in last 90 days 2018 C O N G R E S S 43

44 Reporting to Employee Each pay period Written notice on pay stub or separately Amount of sick time available 2018 C O N G R E S S 44

45 California Cities San Francisco Oakland Emeryville Santa Monica San Diego Los Angeles Berkeley 2018 C O N G R E S S 45

46 Eligibility: Work in Jurisdiction 30 Days in a Year San Francisco No minimum for SF employees Occasional workers, 56 hours in a year Oakland Emeryville Santa Monica 2 hours in a week 2 hours in a week 2 hours in a week No minimum for hotel workers San Diego Los Angeles Berkeley 2 hours in a week 2 hours in a week 30 days in a year for same employer 2 hours in a week 2018 C O N G R E S S 46

47 Accrual Rate 1 hour for 30 hours worked or front load 24 hours San Francisco 1:30 Any front load with additional accrual after lump sum earned Oakland Emeryville Santa Monica 1:30 no front load 1:30 Front load of annual accrual cap Any front load with additional accrual after lump sum earned 1:30 Front load of annual accrual cap San Diego Los Angeles Berkeley 1:30 Front load 40 hours 1:30 Front load 48 hours 1:30 no front load 2018 C O N G R E S S 47

48 Accrual Cap 48 hours or 6 days San Francisco 9 or fewer employees: 40 hours 10 or more employees: 72 hours Oakland Emeryville Santa Monica 9 or fewer employees: 40 hours 10 or more employees: 72 hours 55 or fewer employees: 48 hours 56 or more employees: 72 hours 25 or fewer employees: 32 hours 26 or more employees: 40 hours Increase 1/1/2018 to 40 and 72 hours San Diego Los Angeles Berkeley 80 hours No accrual cap Maximum unused sick leave balance: 72 hours 24 or fewer employees: 48 hours 25 or more employees: 72 hours 2018 C O N G R E S S 48

49 Use Cap San Francisco 24 hours or 3 days Oakland Emeryville Santa Monica San Diego Los Angeles Berkeley None None None Accrual cap 40 hours 48 hours 24 or fewer employees: 48 hours No cap for larger businesses 2018 C O N G R E S S 49

50 Use Increment 2 Hours San Francisco Oakland Emeryville Santa Monica 1 hour 1 hour 2 hours Not addressed San Diego Los Angeles Berkeley 2 hours 2 hours Not addressed 2018 C O N G R E S S 50

51 Definition of Family Spouse, children, siblings, registered domestic partner, grandparents, grandchildren San Francisco Adds... other designated person if no spouse or registered domestic partner Oakland Emeryville Santa Monica Adds... other designated person if no spouse or registered domestic partner Adds... other designated person if no spouse or registered domestic partner Also allows sick time use for care of service dog Same as state law San Diego Los Angeles Berkeley Same as state law Adds individuals related to employee by blood or affinity equivalent to a family relationship Adds... other designated person if no spouse or registered domestic partner 2018 C O N G R E S S 51

52 Pay Rate Average regular rate in workweek or average regular rate in full pay periods in last 90 days San Francisco Oakland Emeryville Santa Monica San Diego Los Angeles Berkeley Regular hourly rate Regular hourly rate Not addressed Not addressed Regular hourly rate Not addressed Regular hourly rate If rate change, piece rate, or commission in last 90 days, then average regular rate in full pay periods in last 90 days C O N G R E S S 52

53 Hotel Workers Long Beach: 3.33 hours/month PTO Los Angeles: 1.85 hours/week PTO Proportional amounts for part timers 2018 C O N G R E S S 53

54 Federal Contractors Accrual 1 hour per 30 hours worked up to 56 hours or front load 56 hours Use Increment Carryover Used for Definition of family Notice to employee 1 hour Up to 56 hours Illness, preventative care visits, safe time Includes domestic partners and their children Monthly Rehire Balance reinstated if rehired within 12 months 2018 C O N G R E S S 54

55 Private Contractors Yearly Sick Time Facebook 15 paid days off Holiday/vacation/sick Microsoft 15 unrestricted or 10 vacation & 5 sick Employee Eligibility Substantial work for FB Substantial work for MS Employed 9 months/1,500 hours with supplier Contractor Eligibility U.S. companies, more than 25 workers supporting FB 50 or more employees in U.S C O N G R E S S 55

56 #PAYCON Policy Considerations 56

57 Current Paid Sick Leave Policies Is it equal or better than mandate? in all ways? Verify Usage rules (family, safe time) Caps and carryover Pay rate 2018 C O N G R E S S 57

58 New Sick Leave Policy Consider up front credit v. work-based accrual Use policy templates SHRM Other resources 2018 C O N G R E S S 58

59 Issues for Multi-Jurisdiction Employer One policy Multiple policies 2018 C O N G R E S S 59

60 #PAYCON Tools For Automation 60

61 Software Systems Time and Attendance Human Resources Payroll 2018 C O N G R E S S 61

62 Features Accrual calculations Accrual, usage, and carryover limits Leave request increments Benefit activity reporting Integration 2018 C O N G R E S S 62

63 #PAYCON Wrap Up 63

64 What Do I Do 2018 C O N G R E S S 64

65 Your To-Do List Know the mandates in your jurisdiction Advocacy groups Try to get paid sick leave laws passed at federal, state, and local levels National Partnership for Women and Families A Better Balance Legal blogs Paid Sick Work 2018 C O N G R E S S 65

66 National Partnership for Women & Families paidsickdays.org/campaigns 2018 C O N G R E S S 66

67 National Partnership for Women & Families work-family/psd/paid-sick-days-statutes.pdf 2018 C O N G R E S S 67

68 A Better Balance C O N G R E S S 68

69 Paid Sick Work C O N G R E S S 69

70 Your To-Do List Paid Sick Leave vs. Paid FAMILY Leave Important to know the difference 2018 C O N G R E S S 70

71 Your To-Do List American Payroll Association Resources APA's Guide to State Payroll Laws Table 9.2 State/City Paid Sick Leave Requirements PayState Update Payroll Source Plus Subscribe to APA News to receive Pay News Now digests electronically 2018 C O N G R E S S 71

72 Your To-Do List 1. Know the mandates in your jurisdiction 2. Review your current policies 3. Look for help from automated systems 2018 C O N G R E S S 72

73 Contact (Twitter) /bethbaerman (LinkedIn) C O N G R E S S 73

74 Thank you! Please Complete Your Evaluation #PAYCON