paid sick leave task force report

8/10/2019 Paid Sick Leave Task Force Report

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Mayors Task Force on Paid Sick Leave

Recommendations on Paid Sick

Leave Policies in PhiladelphiaFinal Report

Presented to Mayor Michael A. Nutter and City Council

December 2014


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Natalie Levkovich (co-chair), Executive Director, Health Federation of Philadelphia

Dan Calista (co-chair), Founder and CEO, Vynamic

Chioma Azi, Esquire, African Cultural Alliance of North America

Marianne Bellesorte, Vice President of Policy, Strategy & Communications, Pathways PA

Peter Cappelli, George W. Taylor Professor of Management and Director, Center for Human Resources at

the Wharton School of the University of Pennsylvania

Pete Ellis, Owner, El Fuego

Dewetta Logan, Director and Owner,Smart Beginnings Early Learning Center

Dr. Scott McNeal, Chief Medical Officer, North Philadelphia Health System and Delaware Valley

Community Health

Luis Mora, Founder and CEO,FINTANA

Teofilo Reyes, National Research Director, Restaurant Opportunities Center United

Elliot Rosario,Manager,Wash Cycle Laundry

Narasimha Shenoy, Executive Director, Asian American Chamber of Commerce of Greater Philadelphia

Ellen Somekawa,Executive Director,Asian Americans United

Joanne Zeas, Director of Human Resources,Temple University

Staff support provided by: Jackie Dunn, Noelle Marconi, James Startare, and Gregory Waldman

Mayors Task Force on Paid Sick Leave

Task Force Members

Mayors Task Force on Paid Sick Leave December 2014 Page 2


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ContentsLetter to the Mayor from the Co-Chairs ....................................................................................................... 5

Executive Summary ....................................................................................................................................... 6

Introduction .................................................................................................................................................. 8

Previous Efforts Paved the Way ............................................................................................................ 8

Our Work ............................................................................................................................................... 8

Time to Re-examine Paid Sick Leave ..................................................................................................... 9

Philadelphia Business Landscape ................................................................................................................ 10

Employer Overview ............................................................................................................................. 10

Gradual Recovery from the Great Recession ...................................................................................... 11

Gradual Employment Gains ................................................................................................................ 11

Unemployment Rate Remains Elevated ............................................................................................. 12

Persistent Poverty Challenges ............................................................................................................. 13

High Tax Burden .................................................................................................................................. 14

Efforts to Improve Business Climate ................................................................................................... 15

Paid Sick Leave Policies in Philadelphia & Beyond .............................................................................. 15

Considerations Regarding Paid Sick Leave .......................................................................................... 16

Importance of Paid Sick Leave .................................................................................................................... 17

Population in Need ............................................................................................................................. 17

Public Health Concerns ....................................................................................................................... 17

Productivity Concerns ......................................................................................................................... 18

Paid Sick Leave in Comparable Jurisdictions ............................................................................................... 19

Evaluation of Paid Sick Leave Impacts ................................................................................................ 19

Recommendations ...................................................................................................................................... 22

Employer Threshold ............................................................................................................................ 22

Exemptions.......................................................................................................................................... 22

Accrual Rate ........................................................................................................................................ 23

Maximum Accrual Amounts ................................................................................................................ 23

Wait Period for Accrual & Use ............................................................................................................ 23

Existing Employer Policies ................................................................................................................... 23

Family and Relationships Covered under the Bill ............................................................................... 24



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Domestic Violence .............................................................................................................................. 24

Collective Bargaining Agreements ...................................................................................................... 24

No Pay for Unused Hours .................................................................................................................... 24

Record Keeping Requirements ........................................................................................................... 24

Compliance ......................................................................................................................................... 25

Abuse of Leave .................................................................................................................................... 26

Monitoring and Review of Ordinance ................................................................................................. 26

Conclusions ................................................................................................................................................. 27

Acknowledgements ..................................................................................................................................... 28

Appendices .................................................................................................................................................. 30

Appendix A: County Business Pattern Data (2012) ............................................................................. 30

Appendix B: Bureau of Labor Statistics Employee Benefits Survey (March 2014) ............................. 31

Appendix C: Comparisons of Paid Sick Leave Legislation in other Jurisdictions ................................. 33

Appendix D: Additional Resources ...................................................................................................... 39

Endnotes ..................................................................................................................................................... 41



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Recommendations (continued):

Wait Period for Use and Accrual: Employees begin earning sick leave hours for any work

completed upon the commencement of their employment. Employees may use earned leave 90

days after the commencement of employment. Earned leave may be used in the smaller of hourly

increments or the smallest increment permitted by an employers payroll system. Restaurants mayrequire employees to take earned leave in 4-hour increments or the smallest payroll increment

permitted within their existing system.

Existing Employer Policies: Employers will not be required to change existing policies or provide

additional leave if the existing policy satisfies or exceeds the accrual requirements and can be used

under the same conditions.

Domestic Violence:Employees are able to use earned sick time as safe days to seek treatment,

legal services, or relocation.

Collective Bargaining Agreements: Paid sick leave subject to collective bargaining agreements is

excluded from the paid sick mandate.

No Pay for Unused Hours:No compensation is provided for any earned and unused time at

separation from employment.

Record Keeping Requirements: Employers are required to keep records documenting hours

worked, earned time accrued, and sick time taken by employees (whose tenure exceeds 90 days)

for a period of 2 years.

Compliance: Enforcement of the ordinance should be complaint driven. The City should determine

the appropriate office to evaluate claims and arbitrate any disputes. Employers must cooperate

with complaint investigations and be given a reasonable grace period (60 days) to correct the

violation before any fines are levied. Education and awareness campaigns will be key to

compliance efforts.

Abuse: Employers may require reasonable documentation for sick leave use. The employee must

provide notice as soon as practicable and must generally comply with the employers reasonable,

normal notification policies and/or call-in procedures, provided that such requirements do not

interfere with the purposes for which leave is needed.

Monitoring and Review of Ordinance:The City should complete a periodic review of the paid sick

leave ordinance to assess compliance, number of employers included, and impact on employers

every 2 years for the first 4 years following enactment. If the Commonwealth of Pennsylvania

passes statewide paid sick leave policy, Philadelphia should evaluate its local impact.



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IntroductionFormed by Executive Order in May 2014, the Mayors Task Force on Paid Sick Leave was asked to

address long standing concerns regarding access to paid sick leave in Philadelphia and the potential

impacts of a paid sick leave mandate on employees, employers and Philadelphias economic

competitiveness.

Previous Efforts Paved the Way

While City Council passed Paid Sick Leave legislation in both 2011 and 2013, Mayor Nutter vetoed the

legislation due to concerns regarding the slow progress of economic recovery following the Great

Recession and the potentially negative impact that such legislation could have on the health of localbusinesses and on job creation.

Over the past few years, the Citys local economy has continued to improve and shows signs of growth.

But this recovery has left some of the poorest citizens behind. While incremental progress in reducing

poverty rates has been seen, Philadelphia continues to have the unfortunate distinction of being the

poorest big city in America with more than one in four of our citizens living in poverty and, of those, half

are stuck in deep poverty, living with incomes less than 50% of the federal poverty level.

Therefore, a Task Force was formed to re-examine paid sick leave.

Our WorkThe Task Force began its work in June. Since its formation, Task Force members have met as a full group

or in subcommittees more than 20 times. Over the course of our work, we have heard from over 28

organizations and individuals regarding the potential impacts of a paid sick leave mandate.

In addition, the Task Force held two public hearings August 6, 2014 and November 19, 2014 to

receive public feedback. Community residents, business representatives, academics, and other

Purpose of the Task Force

With respect to employers, the review shall include the economic effect on businesses, as well

as the likely impacts on operating costs, hiring, and workforce management.

With respect to employees, the review shall include the effect on covered employees and their

families, and the benefits of having a paid sick leave policy in Philadelphia.

The review shall also consider City-wide effects on the business climateand public health.

The review shall evaluate and analyze (i) the current array of paid sick leave policies in

Philadelphia and their application, including the types of leave provided across various

characteristics, such as by industry, business size, and employee wages; and (ii) the impact of

the implementation of paid sick leave in jurisdictions comparable to Philadelphia.

The review shall further consider what, if any,possible approaches to mandating paid sick

leavewould afford a meaningful benefitto employees while preserving or enhancing the

business climate to create more jobs in Philadelphia.



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interested individuals attended the initial hearing and provided testimony regarding their thoughts on

the current status of paid sick leave in Philadelphia and the potential impacts of mandating paid sick

leave in the city.

We began our work by reviewing the prior 2011 and 2013 paid sick leave bills passed by City Council as

well as available research on paid sick leave legislation implemented in other cities and states. Wecreated three working groups: 1) to determine the impact of paid sick leave on employees and the

public health, 2) to determine the impact of a paid leave mandate on the business climate and area

employers, and 3) to evaluate the experiences in other jurisdictions with paid sick leave. As a part of this

effort, groups reviewed public health literature, academic studies and surveys, public testimony, and

human resource publications. Evaluating local economic and employment data helped to build a richer

understanding of how Philadelphia compares within the region and among peer cities.

One of the strengths of this Task Force is our diverse membership, including business and community

leaders, human resource and public health professionals, academics, and research professionals. While

these recommendations represent the strong consensus of the Task Force, not all of the

recommendations were unanimously agreed upon. Members diverse backgrounds helped inform the

debate on complex issues relating to paid sick leave impacts on employees and employers.

While there is no single, perfect set of recommendations, the Task Force has formally adopted this

report as expressing our collective opinion on how best to move the issue of paid sick leave forward.

Time to Re-examine Paid Sick Leave

Since paid sick leave legislation was originally introduced, evidence points to signs of gradual economic

recovery.

However, our overall recovery has left some segments of our populations woefully behind. Individualsand families living in poverty are less able to maintain health and achieve economic stability, and are

most likely to rely on public services, an economic cost borne by all tax payers, individuals and

businesses alike.

Enacting legislation to guarantee paid sick leave for Philadelphia workers would be in line with current

City initiatives to address the challenge of persistent poverty. Such initiatives include Shared Prosperity

Philadelphia, which was launched in 2013 to expand access to public benefits; increase access to food;

create or encourage programs of literacy education for adults and increased access to quality early

childhood education; reduce consumer debt through free financial counseling; expand job creation and

job training opportunities; and increase housing security and affordability. In 2012, Mayor Nutter signed

an Executive Order requiring City contractors to provide a minimum living wage for employees. These

strategies, designed to help low income citizens, received further support when Philadelphia became

one of three cities to receive the federal Promise Zone designation, a place based strategy to revitalize

distressed communities by partnering with local businesses and organizations to create jobs, expand

educational opportunities, and improve public safety. Paid sick leave for the working poor will enhance

these efforts by providing a measure of job security and income stability.



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These conditions, considering the interests of employers, employees, and the public health and well-

being, makes this the right time to re-examine the question of a local paid sick leave policy.

Philadelphia Business Landscape

Employer OverviewPhiladelphia has 26,662 employers and 594,636 paid employees according to the most recent County

Business Patterns data from the Census Bureau data. More than half of Philadelphia employers (52.8%

or 14,083) have between 1 to 4 employees1(Appendix A).

Employer Breakdown by Establishment Size (2012)

Among employers with the greatest number of employees, the top ten establishments include

government, institutions of higher education, and hospital systems:2

Rank Employer Rank Employer

1 Federal Government 6 Temple University

2 City of Philadelphia 7 Thomas Jefferson University Hospital

3 University of Pennsylvania 8 US Airways Inc.

4 School District of Philadelphia 9 SEPTA

5The Children's Hospital of

Philadelphia10 Temple University Hospital

1-4 EEs

14,083

5-9 Employees

4,926

10-19 EEs3,413

20-49 EEs

2,503

50-99EEs

901

100-249 EEs

563

250-499 EEs

161500-999 EEs

62

1,000+ EEs

50

Establishment SizeEstablishment

Count

% of

Total

1 to 4 employees 14,083 52.8%

5 to 9 employees 4,926 18.5%

10 to 19 employees 3,413 12.8%20 to 49 employees 2,503 9.4%

50 to 99 employees 901 3.4%

100 to 249 employees 563 2.1%

250 to 499 employees 161 0.6%

500 to 999 employees 62 0.2%

1,000+ employees 50 0.2%

All Philadelphia Employers 26,662 100.0%



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Gradual Recovery from the Great Recession

Philadelphia endured the recent recessions fiscal impacts and has started on a course of economic

recovery. The city population grew modestly for the 7 th consecutive year and total employment

surpassed pre-recession levels in 2013.3 The number of building permits issued for new residential

construction, which had slumped during the recession, has reached the highest levels since 2004. 4But

despite these signs of progress, several persistent economic challenges remain with implications for city

employers, workers, and residents.

Gradual Employment Gains

In 2013, the city surpassed its 2008 employment levels, the last year before the impacts of the Great

Recession hit with full force.5However, this total remains below employment totals earlier in the

decade. In prior decades, the city was unable to add back more jobs in periods of economic growth than

it lost in corresponding downturns.6This trend seems to have moderated in the current decade but

remains a concern for policy makers.

695.9

688.2

683.5

671.4

657.9660.3

662.5 662.7 663.3

652.6

657.1660.0

662.3

666.1

630

640

650

660

670

680

690

700

Emp

loyment(Thousands)

Philadelphia Employment



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Unemployment Rate Remains Elevated

Philadelphia has a higher unemployment rate than other surrounding counties. In September 2014,

Philadelphias unemployment rate was 7.1% compared to 4.9% for the state and 5.9% for the nation.

While the citys unemployment rate is down from its peak of 11.6% in July 2012, this rate is still higher

than those in corresponding suburban counties.7

Unemployment Rate (%) 2005 2006 2007 2008 2009 2010 2011 2012 2013 Sep-14

Chester County 3.6% 3.3% 3.1% 4.0% 6.2% 6.5% 6.2% 6.2% 5.8% 3.9%

Montgomery County 3.9% 3.5% 3.4% 4.4% 6.7% 7.1% 6.8% 6.8% 6.3% 4.3%

Bucks County 4.1% 3.8% 3.8% 4.8% 7.2% 7.6% 7.4% 7.4% 6.9% 4.5%

Pennsylvania 5.0% 4.5% 4.4% 5.3% 7.9% 8.5% 8.0% 7.9% 7.4% 4.9%

Delaware County 4.6% 4.2% 4.0% 5.0% 7.5% 8.3% 8.1% 8.1% 7.5% 6.1%

United States 5.5% 5.1% 4.6% 5.8% 9.3% 9.6% 8.9% 8.1% 7.4% 5.9%

Philadelphia County 6.7% 6.2% 6.0% 7.1% 9.6% 10.8% 10.9% 10.8% 10.0% 7.1%

0%

2%

4%

6%

8%

10%

12%

Unemployment Rate (%)

Chester County Montgomery County Bucks County

Pennsylvania Delaware County Philadelphia County



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Persistent Poverty Challenges

Philadelphia has one of the highest poverty rates

among large cities in the country. At 26.3%, the

city has the third highest poverty rate among the

countrys twenty most populous cities. The 2013

poverty line was set by the U.S. Department of

Health and Human Services at $23,550 for a

family of four.

While the percentage of individuals living in

poverty dropped from 28.4% in 2011 to 26.3% in

2013, Philadelphias poverty rate is still more

than double the rates of many surrounding

areas.

13.8%

15.8%

17.0%

17.3%

17.8%

18.9%

19.6%

20.1%

20.9%

20.9%

21.6%

21.6%

22.4%

22.7%

23.0%

23.0%

23.3%

23.6%

24.4%

26.3%

27.7%

40.7%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

San Francisco

San Diego

Charlotte

Jacksonville

Austin

Washington DC

San Antonio

Fort Worth

New York City

El Paso

Boston

Indianapolis

Houston

Columbus

Chicago

Los Angeles

Baltimore

Phoenix

Dallas

Philadelphia

Memphis

Detroit

National Poverty Rate Comparisons (%)

Top 20 US Cities

6.1%

6.8%

7.0%

10.8%

13.7%

15.8%

26.3%

0% 5% 10% 15% 20% 25% 30%

Bucks County

Montgomery County

Chester County

Delaware County

PA

United States

Philadelphia

Regional Poverty Rate Comparisons (%)



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High Tax Burden

The citys tax and regulatory environment also remains a concern for area employers. Philadelphia has

made progress in recent years by reducing taxes, streamlining licensing processes, and implementing

programs that support small businesses and start-up entrepreneurs. Nevertheless, many businesses still

consider the citys tax and regulatory climate to impede business creation and expansion. Employers,

particularly small businesses, also experience general difficulty navigating various business specific

rules.8

Tax burdens on businesses are difficult to compare as taxes impact establishments of various sizes and

industries differently and each jurisdiction offers different exemptions and credits. However,

Philadelphia is one of the few cities that taxes both gross receipts and net income of businesses. These

taxes, in addition to the wage tax on employee earnings, have given the city a reputation as a historically

high tax environment for businesses.9Previous Philadelphia task forces on tax policy noted that the city

has more and higher business and individual taxes compared to other large cities.10Philadelphia is

also one of a few cities with personal income, sales, and business taxes levied at the state and local

level.

Types of Taxes Imposed by Selected State and Local Governments

Local Taxes State Taxes

Personal

IncomeSales Business

Personal

IncomeSales Business

Philadelphia Y YNet Income &

Gross ReceiptsY Y Net Income

Boston Y Y Net Income

Baltimore Y Y Y Net Income

Cleveland Y Y Net Income Y Y Gross ReceiptsNew York Y Y Net Income Y Y Net Income

Phoenix Y Y Y Net Income

San Francisco Y Y Gross Receipts11

Y Y Net Income

Washington D.C. Y Y Net Income12

-- -- --

For households, Philadelphia ranks in the top ten in overall tax burden at all income levels among the

largest city in each of the 50 states and Washington, DC according to an annual study prepared by the

Chief Financial Officer in the District of Columbia. 13 A family of three in Philadelphia earning $25,000

pays 15.2% of income toward taxes ranking second nationally among large cities compared to thenational average of 12.7%. A family of three earning $150,000 in Philadelphia would pay 16.9% of

personal income toward taxes as opposed to an average of 10.9% of personal income in other large

cities.



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With businesses in Philadelphia carrying a heavier tax

burden in comparison to businesses in neighboring

counties and to the national average, imposing a paid sick

leave mandate on businesses needs to be carefully

considered and structured in order to avoid unintended

consequences. In recognizing the dilemma for employees

who lack paid sick leave, we caution City leaders to

balance the benefit to employees against the effects of

mandating paid sick leave on the ability of local businesses

to create and retain jobs and to attract and retain

businesses.

Efforts to Improve Business Climate

The City has taken steps over the past several years to restructure its tax policy and position itself for

business and residential growth. In an effort to foster an improved business climate, the City has:

Reduced net profits tax and wage tax in FY2013 and FY2014 with additional reductions

scheduled through FY2019 to lower the cost of living and working in Philadelphia

Established the Office of Business Services, Startup PHL, and the Goldman Sachs 10,000 Small

Business program all designed to increase support and resources for small businesses and

startups

Streamlined process for business permitting

Encouraged business growth by exempting small businesses from Business Income and Receipts

Tax for their first two years of operations if they meet predetermined job creation targets

Paid Sick Leave Policies in Philadelphia & Beyond

Philadelphia employers are not required by law to provide paid sick leave benefits for their employees,

but many establishments offer paid sick or paid time off as a part of their benefit package. Access to

paid sick leave varies by employer size and industry. Paid sick leave data for private employers in

Philadelphia is not available at the local level. However, national level data provides insight into broader

trends (Appendix B):14

65% of civilian employees public and private sectors - have access to paid sick leave in 2014.15

Private industry workers are less likely to have access to paid sick leave compared to state and

local government employees (61% to 89%, respectively).

In the private sector, management employees are most likely to receive paid sick leave (88%)

while those in service industry are least likely (40%).

Across both private and government sectors, few part-time employees receive paid sick days

(24% private, 41% government).

30% of low wage workers (the lowest 25% wage percentile) receive paid sick leave.

Small private employers are also less likely to provide paid sick leave: 52% of all employers with

between 1-99 employees provide paid sick while 65% of moderate (100-499 employees) and

81% of large private employers (500+ employees) provide access to paid sick leave.

15.2%16.9%

12.7%10.9%

0%

5%

10%

15%

20%

Family of Three ($25,000) Family of Three

($150,000)

Percent of Personal Income Spent on

Taxes (2012)

Philadelphia Large City Average



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Nationally, the percentage of all private sector workers with access to paid sick leave has increased over

the last twenty years. In 2012, 61% of all private sector workers had access to paid sick leave, up from

50% in 1992. Despite trends toward increasing access, part-time workers and those at establishments

with fewer than 99 employees were still less likely to have access to a paid sick leave benefit compared

to full-time employees or those working at larger establishments. 16

Access to Paid Sick Leave

All WorkersFull-Time

Workers

Part-Time

Workers

1-99

Employees

100+

Employees

1992-1993 50% 58% 16% 44% 59%

2012 61% 75% 23% 52% 73%

Considerations Regarding Paid Sick Leave

The largest employers in Philadelphia Federal government, City of Philadelphia, School District of

Philadelphia, and SEPTA - provide paid sick leave policies for employees but the benefit varies across

employee groups. The City also requires employers who enter into contracts with the city or receive city

subsidies to provide full-time workers with a minimum amount of paid sick leave.

17

Small Business:Approximately 53% of all Philadelphia employers have between 1-4 employees. Small

business sick leave offerings varied from employer to employer. While some offer formal leave, others

have informal policies permitting time off or do not offer any paid time off for sick leave. The cost of

providing a new benefit, expanding, or formalizing existing policies is a major concern.

If mandated to provide paid sick leave, businesses may either delay work, hire replacement workers to

fill in for those taking sick time, or operate with a short staff. In providing paid sick leave, businesses

must pay an employee not to come in while sick and either suffer a temporary loss in productivity or pay

a replacement worker to do the permanent employees job.

Aside from benefit offerings, many small employers lack the administrative systems to comply with

potential record keeping requirements which will pose an additional cost. Providing notice for non-

English speaking staff in appropriate languages is an additional compliance challenge.

Regulated industries: Employers required by federal, state or local legislation to maintain a certain

staffing ratio may be concerned about the additional costs and potential increased use of sick leave. For

instance, the Pennsylvania Department of Public Welfare requires child care centers to maintain a

certain child to teacher ratio.18 This scenario is not unique to Philadelphia as similar standards are in

place across the country but it is an important consideration for policy makers.

Education and health sectors: The City is home to large educational institutions and hospitals. While

full- and some part-time employees receive paid sick leave, interns, per diem employees and certain

adjunct employees (those employed on a per-class basis) do not. These cohorts would pose an

administrative challenge under a potential paid sick leave bill.



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National and regional employers:Employers with multiple locations in and outside of the City have

to track employee hours, especially for those individuals who move between stores, where

legislation across municipal and state lines differs.

Importance of Paid Sick Leave

Population in Need

An estimated that 35% to 40% of workers in Philadelphia, or approximately 200,000 individuals, lack

access to paid sick leave, a figure that is consistent with national estimates.19It must be noted, however,

that paid sick leave is not evenly distributed across the population. The majority of professionals and

more highly compensated workers have access to paid time off or the flexibility to work from home,

make up time or otherwise accommodate the life/work balance, a privilege not usually available to low

income, hourly or lower skilled workers (Appendix B). Low income workers, especially women and

minorities, carry the heaviest burden and are least likely to have paid time off to care for their own or

their dependents health. It is important to note that among families with children that are headed by

woman and among African Americans and Latinos, the current poverty rate is much higher than for our

population as a whole.20

For a worker without paid sick leave, the choice is often between going to work ill and forgoing care or

taking unpaid time and facing increased economic hardship. For a family without paid time off, on

average, 3.1 days of pay lost due to illness is equivalent to an entire months health care budget and 3.5

days is equivalent to its entire monthly grocery budget.21Workers without paid sick leave are five times

more likely to report using the emergency room,22adding to avoidable healthcare costs. Women

without paid sick leave are significantly less likely to obtain preventive breast exams.23Delayed or

avoided preventive, early detection, primary and chronic care often results in lost productivity,

increased morbidity, higher healthcare costs and higher rates of mortality.

Public Health Concerns

Employees who come to work sick present both a public health and economic risk to their employers

and to the public. Workers with direct and intimate public contact, such as personal care, food service,

hospitality, healthcare support, retail workers and others are least likely to have paid sick leave benefits.

Sanitary conditions are regulated and standards of hygiene for restaurants, sterilization of instruments

in barber shops and nursing homes, safety of play equipment in day care centers are mandated and

enforced. Philadelphia food safety regulations require food employees to report illnesses to their

managers and for food service managers to exclude sick employees from the establishment. However,

employees may make economic decisions rather than seek treatment. When these workers come towork sick because they lack paid sick time, they are not only neglecting their own health, they are

increasing the likelihood of spreading illness to their coworkers and members of the public.

Centers for Disease Control and Prevention(CDC) guidelines recommend that children be kept at

home for at least 24 hours after a fever and that people experiencing the flu avoid public



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contact (called social distancing) for 5 days since these are the periods of greatest risk for

contagion and spread of infectious illness to co-workers and the public.

The Food and Drug Administration requires food service workers with norovirus-related illnesses

to work on a restricted basis until 24 hours after symptoms subside.24Since the great majority of

food service employers dont offer paid sick time, workers are forced either to work, potentially

infecting customers, or take unpaid leave, risking the financial needs of their families. One

example of the consequences of working while contagious occurred in Kent, OH where a worker

at a chain restaurant came to work sick with a norovirus (vomiting and diarrhea) and 500 people

became ill costing the Kent community between $130,233 and $305,337. 25Similar examples can

be cited for nursing homes and other high contact workplaces.

The H1N1 (swine flu) pandemic further underscored the need for paid sick leave. Between

September and November 2009, 8 million workers went to work sick and may have infected 7

million of their co-workers, or 15% of the 44 million infected.26

Productivity Concerns

In addition to the risk for spreading illness, workers who come to work sick are less productive and morelikely to experience workplace injury. According to the CDC, workers with paid sick leave are 28% less

likely to sustain non-life threatening workplace injuries.27Presenteeism or coming to work while sick is

estimated to cost employers twice as much as absenteeism due to illness. 28



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Paid Sick Leave in Comparable JurisdictionsAs of November 2014, 16 cities and 3 states have passed paid sick leave laws. A detailed comparison of

paid sick leave bills is available in Appendix C.

Key elements across paid sick leave ordinances include:

Employer Size:The majority of bills divide employers into two

tiers based on number of employees. Seattle was the only city

examined that created a three tier system. There was a

significant difference in definition of small and large employers

across the laws examined. Small employer criteria range from

1-5 employees (Portland, New York City) to a maximum of 49

employees (Connecticut). Large employer criteria ranged from

6 or more (Portland) to 250 or more (Seattle). The State of

California and cities of San Diego, Eugene, and San Francisco do

not establish tiers and require all employers to provide paid sickleave.

Waiting Period for Eligibility and Use: The majority of paid sick

laws permit employees to begin accruing hours at the

commencement of employment. However, many laws require

employees to work for a set number of days before they can use

accrued sick leave hours. The most common waiting period was

90 days, however some laws required as many as 180 days

before employees could use accrued leave.

Accrual rate: The rate at which employees accrue hours also

varied by business size. The majority of laws provided 1 hour ofleave for every 30 to 40 hours worked.

Maximum accrual: 40 hours was the most common accrual amount for both large and small

business. The range for large business went from 40 to 72 hours maximum accrual each year,

and the small business range was from 24 to 40 hours.29

Carry-over provisions: All laws permitted employees to carry over unused sick leave hours from

one year to the next, permitted they were not at the maximum allotment. 40 hours was the

most common carry-over amount, but values ranged from 24 hours (3 days) to 72 hours.

Maryland and New Jersey both have paid sick leave advocate campaigns under way that would require

paid sick leave at the State level. Conversely, 10 states have passed laws prohibiting local governmentsfrom enacting paid sick leave requirements: Arizona, Florida, Georgia, Indiana, Kansas, Louisiana,

Mississippi, North Carolina, Tennessee, and Wisconsin.

Evaluation of Paid Sick Leave Impacts

Due to the complexity of the issue and relatively recent adoption of state and local ordinances, there are

very few comprehensive academic studies on the effects of paid sick leave on employees, employers,

and the local economy. The majority of available research is based on surveys of employers or

Paid Sick Leave Timeline

San Francisco (CA) Nov-06

Washington, DC Mar-08

Connecticut Jul-11

Seattle (WA) Sep-11

Portland (OR) Mar-13

Jersey City (NJ) Oct-13

Newark (NJ) Jan-14

New York City (NY) Mar-14

San Diego (CA) Jul-14Eugene (OR) Jul-14

California Aug-14

East Orange (NJ) Sep-14

Irvington (NJ) Sep-14

Passaic (NJ) Sep-14

Paterson (NJ) Sep-14

Massachusetts Nov-14

Montclair (NJ) Nov-14

Trenton (NJ) Nov-14

Oakland (CA) Nov-14



20/42

employees. While surveys are valuable tools, the validity and reliability of survey results are contingent

upon survey design, sampling methodology, and response bias. The Task Force sought to focus on

common findings across all studies and look to academic sources such as the Bureau of Labor Statistics

for reliable indicators of economic impact as a result of paid sick leave. Key findings from available

research include:

Workers do not report using all sick days available.The National Health Interview survey indicates that

workers used between 2.2 days to 3.1 days per year (varied based on firm size).30Employer surveys in

San Francisco and Connecticut found that employees did not use all the sick days afforded to them

under the new paid sick leave ordinances. The San Francisco paid leave ordinance provided workers with

5 to 9 days based on employer size, but the median leave reported was 3 days (including those

employees using no days). Of workers using leave, the median usage was 4 days out of the 5 to 9 days

offered.31In Connecticut, employers reported usage at 4 days on average of the 7.7 days afforded to

employees.32

Paid sick leave increased access to leave for employees who report the greatest need. As BLS data

indicates, low wage workers are less likely to have access to paid sick leave than other employee cohorts

and immediately benefited from coverage under recent state and local paid sick ordinances. Workers

with chronic health conditions reported an increased ability to manage health issues in San Francisco.33

Public health benefits from access to paid sick leave. Many studies document the impact of paid sick

leave on access to and use of preventative care, reduced recovery times34, and effectiveness in reducing

the spread of infectious disease.35However, surveys of employers and employees found mixed results

on how likely employees were to stay home when sick after recently acquiring paid leave. In Seattle,

workers with high levels of public contact were less likely to report staying home when sick compared to

their peers.36In two studies, San Francisco employers reported little change in perceived rates of

presenteeism after paid sick leave passed.37 This finding suggests public awareness and employer

engagement are key to recognizing the full benefits of a paid sick leave policy.

The majority of employers were already compliant with paid sick leave mandates. Surveys found that

many employers in San Francisco, Seattle, and Connecticut already offered paid leave benefits that

complied with paid sick leave mandates.National data paid sick leave reinforces this finding, 61% of all

private sector employees have access to paid sick leave. Employers most impacted were those in the

retail, hospitality, and service industries or those with a large percentage of part-time employees. 38

Compliance issues arose from lack of awareness by employers and employees. In Seattle, a survey of

employers found that 40% of eligible employers were not aware of the law immediately after passage.

Awareness rates were lowest in larger employers with regional or national offices. In San Francisco, 27%

of employees covered by law self-reported not having access which indicated that they were not aware

of the laws provisions.



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Minimal compliance issues were documented relative to the number of employees impacted. In San

Francisco, employee self-reports indicated very low rates of wage docking, leave denial, or having to find

replacement.39The Seattle Office of Civil Rights averaged 15 employee inquiries or complaints per

month. The Office provided technical assistance to between 65-80 employers per month to help

implement the new policy or advice on the new sick leave law. 40In DC, 91% of employers examined in

an audit complied with posting requirements, but the audit did not examine if leave was granted. 41

The cost of providing and administering paid sick leave benefit has been a concern for employers. To

the extent that paid sick benefits are valuable to employees, it is difficult to assess the costs of leave

policies. The Bureau of Labor Statistics measures the cost to employers for providing wages, salaries,

and selected employee benefits. As of June 2014, the average cost for sick leave per employee hour

worked in the private sector was $0.26 or 0.8% of their total compensation.42The total cost varies from

a low of $0.07 per hour for service occupations to a high or $0.60 per hour worked for management and

professional employees. As a percentage, the estimates ranged from 0.5% to 1.1% of total

compensation. While these are national estimates, they provide a helpful metric for understanding

potential costs.Paid Sick Leave Costs to Employers for Private Industry Workers, June 2014

Cost Per Hour

Worked Per

Employee

Percent of Total

Compensation (%)

All Workers $0.26 0.8%

Management, Professional, Related $0.60 1.1%

Sales and Office $0.18 0.8%

Service $0.07 0.5%

Construction & Maintenance $0.17 0.5%

Production, Transportation & Material Moving $0.17 0.6%

Employer costs per hour worked for sick leave increased from $0.14 per hour to $0.25 per hour from

1992 and 2012. However, sick leave costs as a percentage of total compensation remained unchanged

across establishment categories at approximately 0.9%. 43Total compensation costs include wages,

salaries, benefits, and retirement offerings including defined benefit and defined contribution packages.

Paid Sick Leave Costs to Employers for Private Industry Workers, 1992 and 2012

EstablishmentCost Per Hour Worked

Per Employee

Percent of Total

Compensation (%)

All workers

1992 $0.14 0.9%

2012 $0.25 0.9%Establishments with fewer than 100 workers

1992 $0.10 0.7%

2012 $0.16 0.7%

Establishments with 100 or more workers

1992 $0.17 1.0%

2012 $0.35 1.0%



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Recommendations

To provide the Mayor and City Council with specific recommendations to shape the policy discussion,

the Task Force focused our discussion around several guiding principles:

Provide a meaningful benefit for employees in Philadelphia

Understand the needs of employers in Philadelphia

Provide streamlined recommendations that both employees and employers can understand

The following recommendations define a minimum benefit for all qualifying employees. Employers may

provide additional benefits beyond what is recommended at their discretion.

Employer Threshold

Recommendations:Employers with 15 or more employees are required to provide paid sick leave for

employees. This threshold is consistent with requirements under federal regulations for the Equal

Employment Opportunity Commission (EEOC) created by Title VII of the Civil Rights Act of 1964. We

estimate that this threshold would benefit approximately 120,000 of the 200,000 workers currentlylacking sick leave benefits.

Employers with fewer than 15 employees should provide earned, unpaid sick time of up to the same 40

hour maximum accrual and for the same purposes. This option would prevent employers from

terminating an employee for taking accrued unpaid sick leave.

Rational: The Task Force recommends eliminating multiple employer tiers to streamline regulations.

After significant deliberation, the Task Force created a compromise rather than a consensus. The

compromise reflects a balance between covering a significant number of employees and aligning with

other business thresholds defined by the federal government.

Exemptions

Recommendations: The Task Force recommends exempting the following employees from paid sick

requirements:

Federal and state employees

Employees covered under a collective bargaining agreement

Temporary workers (


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Accrual Rate

Recommendation: Employees earn1 hour per 40 hours worked.

Rationale: The Task Forcerecommends employees earn one hour of paid sick leave for every 40 hours

worked to align with common work schedules.

Maximum Accrual Amounts

Recommendation: Employees may accrue up to 40 hours per rolling 12 month period of employment.

Accrued time may be taken in the smaller of hourly increments or the smallest increment that an

employers payroll system permits to account for absences or other uses of time. Restaurants may

require employees to take leave in 4-hour increments or the smallest increment permitted by the

employers payroll system.

Rationale: Employees may carry over hours from the prior year up to the 40 hour cap. Employers are

not required to provide paid leave beyond the 40 hours cap. To streamline requirements, the Task Force

recommends the 40 hour cap apply regardless of business size.

The Task Force believes this provision will provide a reasonable amount of time for covered employees

without creating a significant potential cost for employers. Studies on paid leave use indicate that

employees, on average, do not use all of the paid sick leave provided. Taking time in defined increments

enables employers to manage the time taken more effectively with work schedules. Due to the unique

staffing challenges, it is recommended that restaurant employees take accrued time in the smaller of

four-hour increments or the smallest increment that the employers payroll system permits for absences

or other uses of time. Employers may choose to provide additional leave independent of the mandate,

but the 40 hour cap enables employers to quantify the potential liability.

Wait Period for Accrual & Use

Recommendation: Employees begin earning sick leave hours for any work completed upon the

commencement of their employment. Employees many use earned leave 90 days after the

commencement of their employment.

Rationale: Consistent with paid sick leave ordinances across the country, the Task Force recommends

that covered employees earn time at the start of employment and must work for 90 days prior to using

any earned sick leave benefits.

Existing Employer Policies

Recommendation: Employers will not be required to change existing policies or provide additional paid

leave if the employers existing policy satisfies or exceeds the bills accrual requirements and can be

used under the same conditions.



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Rationale: The Task Force reinforces the condition that no change of practice is required of employers

who currently provide paid sick leave or any form of paid time off that can be used for similar purpose

that meets or exceed the accrual requirements laid out by the Task Force.

Family and Relationships Covered under the Bill

Recommendation: Employees are able to use earned leave to care for injury, medical care, and healthconditions for the following individuals:

Self, child, spouse/domestic partner

Foster, step, in-law relationships

Parent, grandparent, grandchild

Siblings

Rationale: The Task Force recognizes that the definition of care giver and family are ever evolving.

However, to streamline the requirements for all parties, the Task Force proposes common care giving

relationships.

Domestic Violence

Recommendation: Employees are able to use earned leave to care for themselves and seek treatment,

relocation, or legal services to address domestic violence, sexual assault, and stalking incidents.

Rationale: The Task Force recognizes the need to provide safe days for employees impacted by

domestic violence, sexual assault, and stalking.

Collective Bargaining Agreements

Recommendation: Paid sick leave subject to collective bargaining agreements is excluded from the paid

sick mandate.

No Pay for Unused HoursRecommendation: No compensation is provided for any paid sick days earned and unused at the time of

separation from employment.

Record Keeping Requirements

Recommendation: Employers are required to keep records documenting hours worked, earned time

accrued, and sick time taken by employees (whose tenure exceeds 90 days) for a period of 2 years.

Employers would not be required to keep records on employees who do not work for a period of 90

days. Employers shall permit the designated City agency access to such records to monitor compliance if

an employee complaint is filed.

Rationale: To reduce the administrative burden on businesses, the Task Force recommends limiting the

record keeping requirement to a period of 2 years. The Task Force recommends that employers keep

records documenting basic data relating to the use and accrual of paid sick leave. Such records will

protect employers and employees in disputes over compliance with the mandate and encourage timely

filing of complaints.



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Compliance

Recommendation:To minimize administrative burdens for employers and the City, enforcement of this

ordinance should be complaint driven with the following provisions to ensure understanding of the

requirements by both employers and employees:

City Council previously identified the Office of Labor Standards (OLS) within the CommerceDepartment as the compliance and enforcement body for the paid sick leave bill. OLS is a 6

person office that enforces the prevailing wage ordinance for contractors doing business with

the City by reviewing payroll records and monitoring contract terms. Determining eligibility and

potentially arbitrating disputes for a larger universe of employers would prove difficult for this

office as currently organized. The Task Force recommends that policy makers determine the

appropriate office, and that this office (Office) be provided with legal and business expertise

to enforce recommendations and evaluate complaints.

The Office should establish clear policies for employees and employers to follow once a

complaint has been filed, describing the type of documentation (payroll, employer size, etc.)

that must be provided in order to respond to or arbitrate a complaint. The Office should develop and distribute guidelines and regulations for implementation of the

ordinance.

Notice of the rights and regulations required by the ordinance should be posted at the worksite

in English and any primary language spoken by 5% of workers and included in human resource

policies and procedures that are distributed to employees

Employees or other interested parties have the right to report any violations of the policy to

Office without incurring risk of termination of employment or other retaliatory actions on the

part of the employer.

Employer must cooperate with the Office in any investigation of a complaint by making records

available.

Penalties for substantiated violations by the employer should result in substantial fines;

however, the employer should be granted a reasonable grace period (60 days) to correct the

violation before the fine is levied. Penalties should include restitution of wages lost as a result of

the violation. Policy makers should also incorporate an administrative exhaustion requirement,

which would require the complaint to first be settled administratively and outside of court, in

order to reduce the potential amount of litigation.

The City should take steps to widely publicize passage of the ordinance and the rights and

responsibilities that it guarantees to ensure broad awareness and understanding of sick leave

policy by the general public.

The City should also undertake or support a public education campaign to inform the public

about the negative impact on personal and public health of going to work or school while sick.

Rationale:Experiences in other jurisdictions with new paid sick leave laws indicate that awareness was

the most common reason for non-compliance. The above efforts will help raise awareness and provide

non-compliant employers with an opportunity to rectify issues prior to incurring penalties.



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Abuse of Leave

Recommendation: Employers may require reasonable documentation for sick leave use. The employee

must provide notice as soon as practicable and must generally comply with the employers reasonable

normal notification policies and/or call-in procedures, provided that such requirements do not interfere

with the purposes for which the leave is needed, such as emergency treatment.

Monitoring and Review of Ordinance

Recommendation: The Task Force recommends the City complete a periodic review of the paid sick

leave ordinance to assess compliance, number of employers included, and impact on employers. The

City could designate an internal Task Force or contract with an outside entity to evaluate the ordinance

every 2 years for the first 4 years following enactment.

If the Commonwealth of Pennsylvania passes statewide paid sick leave policy, Philadelphia should

evaluate its local impact.



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28/42

Acknowledgements

We begin by thanking Mayor Nutter for the opportunity to address the issue of paid sick leave in

Philadelphia. We hope this report and our recommendations meet the needs of the Mayor and City

Council.

We appreciate the time and expertise from Councilman William Greenlee and his staff. The report and

its recommendations are stronger as a result of your dedication, input, and previous research on paid

sick leave.

We want to acknowledge and thank the many individuals and organizations that took the time to

present testimony at the two public hearings of the Task Force, which were held in August and

November, 2014, and those who shared their thoughts and insights with the Task Force in meetings or

via email: Dr. Eileen Appelbaum, Center for Economic Policy and Research; Ellen Bravo, PA Families @

Work; Dr. Esther Chernak, Center for Public Health Readiness and Communication; Brent Cossrow,

Fisher & Phillips LLP; Andre Butler, Unemployment Project; Daisy Cruz, 32BJ SEIU; Delaware Valley

Health Corporation of HAP; John Doulgeris, Pennsylvania Restaurant & Lodging Association; Don Fox,

Firehouse Subs; John Grady, Philadelphia Industrial Development Corporation; Ed Grose, Greater

Philadelphia Hotel Association; Jonathan Heller, Human Impact Partners; Gary Jastrzab, Philadelphia City

Planning Commission; Martha Johnston, Philadelphia Law Department; Cara Leheny, Philadelphia Law

Department; Sherry Leiwant, A Better Balance; Shymara Jones, fast food employee; John Longstreet,

Pennsylvania Restaurant & Lodging Association; Dave Magrogan, Dave Magrogan Group; James

Meadows, Action United; Jason McCartney, restaurant employee; Onetha McKnight, 32BJ SEIU; Sara

Merriman, Philadelphia Department of Commerce; Dr. Jessica Milli, Institute for Womens Policy

Research; John Mondlak, City of Philadelphia Commerce Department; Angela Owens, United Home Care

Worker; Dr. James Plumb, Jefferson Hospital; Catherine T. Pulos, Wawa; Jeff Rousset, Media

Mobilization Project; Marvin Robinson, Action United; Carol Rogers, Healthy PA; Hannah Sassaman,

Media Mobilizing Project; Gosia Siestrzewitowska, restaurant employee and student; Kati Sipp,

Pennsylvania Working Families; Zsanell Smith, Action United; Al Taubenberger, Greater Northeast

Philadelphia, Chamber of Commerce; Geovanni Theodore, food service employee; Carol Tracy, Womens

Law Project; Dr. Walter Tsou, past president of the American Public Health Association and former

health commissioner of Philadelphia; Dawn Walton, Action United; Garth Weldon, The Prime Rib; Robert

Zuritsky, Philadelphia Parking Association.

The Task Force also thanks Lisa Crutchfield from the Greater Philadelphia Chamber of Commerce for her

involvement in early Task Force proceedings.

We are also grateful to Larry Liu, a Research Assistant at the Wharton School, for the research and

analytical expertise he provided to Task Force staff members.



29/42

Finally, the Task Force members, their organizations, and staff were essential to the success of the

group. Although the Task Force had a limited amount of time to develop this report, everyone

demonstrated a commitment to maximizing the time it had. We thank them greatly.



30/42

Appendices

Appendix A: County Business Pattern Data (2012)

Number of Establishments by Employment-size class

NAICSTotal

Establishment1-4 EE 5-9 EE 10-19 EE 20-49 EE 50-99 EE 100-249 EE 250-499 EE 500-999 EE 1,000

11

Agriculture, forestry, fishing and

hunting3 3 0 0 0 0 0 0 0 0

22 Utilities 13 3 3 1 0 3 2 0 1 0

23 Construction 1,127 802 153 85 56 16 10 4 1 0

31 Manufacturing 764 291 161 120 96 47 37 7 5 0

42 Wholesale trade 1,106 495 236 172 128 47 19 6 2 1

44 Retail trade 4,524 2,534 914 529 381 87 64 14 1 0

48 Transportation and warehousing 471 261 58 53 49 15 21 8 2 4

51 Information 477 226 82 56 50 28 28 3 3 1

52 Finance and insurance 1,332 635 330 174 97 38 41 10 4 3

53 Real estate and rental and leasing 1,054 652 200 110 65 18 8 0 1 0

54

Professional, scientific, and

technical services2,795 1,651 453 318 209 86 50 19 7 2

55

Management of companies and

enterprises172 50 14 25 29 24 15 7 6 2

56

Administrative and support and

waste management and

remediation services

977 520 126 124 105 46 37 14 4 1

61 Educational services 528 158 81 70 90 81 23 9 5 1

62 Health care and social assistance 3,903 1,548 890 706 436 137 103 43 18 2

71

Arts, entertainment, and

recreation373 162 62 57 50 22 12 4 1 3

72 Accommodation and food services 3,682 1,974 532 469 465 155 78 8 1 0

81

Other services (except public

administration)3,354 2,111 631 344 197 51 15 5 0 0

99 Industries not classified 7 7 0 0 0 0 0 0 0 0

------ Total for All Sectors 26,662 14,083 4,926 3,413 2,503 901 563 161 62 5


31/42

Appendix B: Bureau of Labor Statistics Employee Benefits Survey (March 2014)

Paid Sick Leave Benefit Access (%) Civilian (1) Private

Industry

State and Local

Government

All workers.............. 65 61 89

Worker characteristics

Management, professional, and related 84 82 90

Management, business, and financial 89 88

Professional and related 82 78 90

Teachers 85 89

Primary, secondary, special education teachers 96 96

Registered nurses 81

Service 46 40 85

Protective service 71 46 90

Sales and office 66 63 89

Sales and related 51 51 Office and administrative support 74 71 90

Natural resources, construction, maintenance 58 54 95

Construction, extraction, farming, fishing, and forestry 44 38

Installation, maintenance, and repair 70 67

Production, transportation, and material moving 57 56 88

Production 59 58

Transportation and material moving 55 53

Full time 78 74 98

Part time 25 24 41

Union 83 70 97

Nonunion 62 60 82

Average wage within the following categories:

Lowest 25 percent...... 34 30 74

Lowest 10 percent.... 21 20 61

Second 25 percent...... 68 64 93

Third 25 percent....... 78 73 93

Highest 25 percent.... 87 84 97

Highest 10 percent... 90 87 98

(1) Includes workers in the private nonfarm economy except those in private households, and workers in

the public sector, except the federal government.


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Bureau of Labor Statistics Employee Benefits Survey (March 2014, continued)

Paid Sick Leave Benefit Access (%) Civilian (1) Private

Industry

State and Local

Government

1 to 99 workers.......... 53 52 79

1 to 49 workers........ 51 50 7050 to 99 workers....... 58 56 90

100 workers or more...... 76 72 91

100 to 499 workers..... 68 65 88

500 workers or more.... 85 81 92

Geographic areas

Northeast................ 69 65 89

New England............ 67 63 88

Middle Atlantic........ 69 66 90

South.................... 66 61 90South Atlantic......... 67 62 92

East South Central..... 63 57 90

West South Central..... 66 62 88

Midwest.................. 61 57 87

East North Central..... 61 57 86

West North Central..... 63 58 90

West..................... 64 60 89

Mountain............... 61 57 83

Pacific................ 66 61 91

(1) Includes workers in the private nonfarm economy except those in private households, and workers in

the public sector, except the federal government.



33/42

Appendix C: Comparisons of Paid Sick Leave Legislation in other Jurisdictions

Location &

Law/Bill Number

Philadelphia PhiladelphiaSan Francisco (CA) District of Columbia Connecticut Seattle (WA) Portland (OR) New York City (NY)

Bill 080474 Bill 130004 S.F. Admin. Code

Ch. 12W (2006)

DC Code 32-131.01 et

seq. (2008, amended

2014)

Public Act 11-52

(2011) (effective

9/2012)

Ordinance 123698

(2011) (effective

9/2012)

Ordinance 185926

(2013) (effective

1/2014)

Int. 0097-2010 (2013), Int.

0001-201 (2014) (effective

4/2014)

Exemptions: e.g.

Employer size;

Types of workers;

Tenure of workers

ERs with 5 or fewworkers;

ERs with 5 or fewworkers;

Independentcontractors; studentsemployed by theirhigher educationinstitutions for less than25 hours a week;healthcare workersparticipating inpremium pay programs

EEs not employed inone of the 68enumerated serviceoccupations or by ERSwith fewer than 50 EEs;salaried or exemptworkers; temporaryworkers; certain stateEEs; manufacturingERs; nationally

chartered nonprofits

Federal, state or localgovernment ERs otherthan the City of Seattle;Tier 1 and Tier 2 ERsin business for fewerthan 24 months areexempt

Federal, state or localgovernment ERs otherthan the City ofPortland; independentcontractors; work-studystudents; railroadworkers exemptedunder FRIA

Federal, state or city EEs;work-study students;independent contractors; orcertain physical, occupationaland speech therapists

Does not apply tofederal or state EEs;EEs covered undercollective bargainingagreement; independentcontractor; seasonalworkers; interns; poolworkers

Does not apply tofederal or state EEs;EEs covered undercollective bargainingagreement; temporaryworkers (less than 6months); independentcontractor; seasonal

workers; interns; poolworkers

Business Size

(Small = SB;

Large = LB)

SB: 6-11 EEs;

LB: 11 or more EEs;

A chain establishmentdoing business underthe same trade name asused by 15 or moreother establishments isnot considered a smallbusiness

SB: 6-20 EEs

LB: 21 or more EEs;

A chain establishmentdoing business underthe same trade name asused by 15 or moreother establishments isnot considered a smallbusiness

SB: 1-9 EEs

'LB: 10 or more EEs

SB: 24 or fewer EEs;

MB: 25-99 EEs;

LB: 100 or more EEs

LB: 50 or more EEs Tier 1 (SB): 5-49 FTEs

Tier 2 (Medium 50-249FTEs

Tier 3 (LB) 250 ormore FTEs

SB: 1-5 EEs

LB: 6 or more EEs

SB: 1- 5 EEs

LB:6 or more EEs

'For certain chainbusinesses/franchises, allworkers are counted together todetermine if considered SB

Accrual Rate and

Max Accrual or

Use Amount

1 hour for every 40worked

SB: Max accrual 32hours

LB: Max accrual 56hours;

1 hour for every 40worked

SB: Max accrual 32hours

LB: Max accrual 56hours;

SB: 1 hour for every30 worked, 40 max;

LB: 1 hour for every30 worked, 72 max

SB: 1 hour for every 87worked, max 3days/year; MB: 1 hourfor every 43 worked,max 5 days/yr; LB: 1hour for every 37worked, max 7 days/yr;Tipped restaurant andbar workers earn 1 hourfor every 43 worked,max 5 days/yr

1 hour for every 40worked, 40 max

SB: 1 hour of unpaidtime off for every 30worked, 40 max;

MB: 1 hour for every40 worked, 56 max;

LB: 1 hour for every30, 72 max. LB: withPTO policy: 1 hour forevery 30, 108 max

SB: 1 hour of unpaidtime off for every 40hours worked, 40 max;

LB: 1 hour of paid timeoff for every 30worked, 40 max

SB: 1 hour unpaid ti me off forevery 30 worked, 40 max:

LB: 1 hour for every 30worked, 40 max

Wait Period forAccrual Commencement ofemployment Commencement ofemployment 90 days aftercommencement ofemployment

Commencement ofemployment Commencement ofemployment Commencement ofemployment Commencement ofemployment Commencement ofemployment

Wait Period for

Use

90 days aftercommencement ofemployment




680 hours aftercommencement ofemployment



120 days after commencementof employment

Employers

Existing Policy

No additional timerequired if ER providespaid leave that meetsthe bills accrualrequirements and canbe used for the samepurposes and under thesame conditions

No additional timerequired if ER providespaid leave that meetsthe bills accrualrequirements and canbe used for the samepurposes and under thesame conditions

No additional timerequired if ERprovides paid leavethat meets the billsaccrual requirementsand that can be usedfor the same purposes

No additional timerequired if ER providespaid leave that meetsActs accrualrequirements and thatcan be used for thesame purposes andunder the sameconditions

No additional timerequired if ER providespaid leave that meetsActs accrualrequirements and thatcan be used for thesame purposes andunder same conditions

No additional timerequired if ER providespaid leave that meetsActs accrualrequirements and thatcan be used for thesame purposes andunder same conditions

No additional timerequired if ER providespaid leave that meetsthe bills accrualrequirements and thatcan be used under thesame conditions as lawrequires. Existingpolicies presumedcompliant.

No additional time required ifER provides paid leave thatmeets the bills requirementsand that can be used for thesame purposes and under thesame conditions


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Location &

Law/Bill Number

Jersey City (NJ) Newark (NJ) Paterson (NJ) East Orange (NJ) Irvington (NJ) Passaic (NJ) San Diego (CA) Eugene (OR) Californ

N.J. Ordinance 13-

097 (2013) (effective

1/2014)

NJ Ordinance 13-


5/2014)NJ Ordinance 21-

2014 (effective

1/2015)

MC3513-2014

Paid Sick Ordinance

2014 (effective

1/2015)

Ordinance 20390

(effective 4/1/2015)

Ordinance 20537


AB1522

(effective 7/2

Exemptions: e.g.

Employer size;

Types of

workers; Tenure

of workers

EEs of any

governmental entity;

Rutgers University

employees

Federal, state or city

EEs; construction EEs

covered by a CBA;

Rutgers University

employees

EEs of anygovernmental entityor NJ school districtor BOE, constructionunion with CBA,

employees who work< 80 hours per year inPaterson

EEs of anygovernmental entityor NJ school districtor BOE, constructionunion with CBA,

employees who work


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Location & Law/BillNumber

Massachusetts

Question 4 (effective 7/2015)

Montclair (NJ)

Public Question 1

Trenton (NJ) Oakland (CA)

(effective 3/2015)

Exemptions: e.g.Employer size; Types of

workers; Tenure ofworkers

EEs of any governmental entity

or NJ school district or BOE,

construction union with CBA,

employees who work < 80

hours per year in Montclair

EEs of any governmental entity

or NJ school district or BOE,

construction union with CBA,

employees who work < 80

hours per year in Trenton

Business Size

(Small = SB; Large =LB)

SB: 1-10 EEs

LB: 11 or more EEs

SB: 1-9 EEs

LB: 10 or more

Child care, home health and

food service workers counted as

LB for hour requirements

SB: 1-9 EEs

LB: 10 or more

Child care, home health and

food service workers counted as

LB for hour requirements

SB: 1-9 EEs

LB: 10+ EEs

Accrual Rate and Max

Accrual or Use Amount

LB: 1 hour for every 30

worked, max accrual 40

hours/year

SB: Provide equivalent in

unpaid time

1 hour for every 30 worked

SB: Max accrual 24 hours

LB: Max accrual 40 hours







Wait Period for Accrual Commencement of employment Commencement of employment Commencement of employment Commencement of employment

Wait Period for Use 90 days after commencement of

employment

90 days after commencement of

employment


employment


employment

Employers ExistingPolicy No additional time required ifER provides paid leave that

meets the bills accrual

requirements and can be used

for the same purposes and under

the same conditions

No additional time required ifER provides paid leave that


requirements and that can be

used for the same purposes and

under the same conditions











Mayors Task Force on Paid Sick Leave December 2014 Page


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Location &

Law/Bill Number

Philadelphia Philadelphia

San Francisco

(CA)District of Columbia Connecticut Seattle (WA) Portland (OR) New York City (NY

Bill 080474 Bill 130004 S.F. Admin.

Code Ch. 12W

(2006)

D. C. Code 32-131.01 et

seq. (2008, amended

2014)

Public Act 11-52

(2011) (effective

9/2012)

Ordinance 123698 (2011)

(effective 9/2012)

Ordinance 185926

(2013) (effective 1/2014)

Int. 0097-2010 (2013),

0001-201 (2014) (effec

4/2014)

Family Members

Covered other

than Self, Child,

Spouse or Parent

Foster, stepparent oradoptive parent or legalguardian of EE or EEs

spouse; person legallymarried under PA laws;grandparent or spouse ofgrandparent; grandchild;biological, foster oradopted sibling or spouseof a biological, foster oradopted sibling; lifepartner; any other individ.related by blood foraffinity whose close assoc.

with EE is the equiv. offamily relationship

Foster, stepparent oradoptive parent or legalguardian of EE or EEs

spouse; person legallymarried under PA laws;grandparent or spouse ofgrandparent; grandchild;biological, foster oradopted sibling or spouseof a biological, foster oradopted sibling; lifepartner; any other individ.related by blood foraffinity whose close assoc.

with EE is the equiv. offamily relationship

Domestic partner;sibling;grandchild; child

of domesticpartner; all step-relationships;designatedperson

Domestic partner; parentof spouse; spouse ofchild; sibling; siblings

spouse; live-in partner(living together at least12 months); child livingwith EE for whom EEcares for permanently

Child and Spouseonly

Grandparent; parent-in-law;domestic partner

Domestic partner;grandparent; grandchild;parent-in-law; person with

whom EE was or is in arelationship in locoparentis

Domestic partner; child oparent of spouse or domepartner; grandparent;

grandchild; siblings

Domestic Violence

Coverage and/or

Coverage for

Public Health

Emergency

DV: Coverage for DV,sexual assault, stalking

DV: For EE or familymember

DV: For EE only DV: Coverage for EEs orfamily members DV sexualassault or stalking

DV: Coverage for DV,harassment, sexual assaultor stalking of EE orminor/child/dependent

PHE: Coverage for closuplace of business or childschool or place of care

PHE: Coverage for closureof place of business orchilds school or place ofcare

PHE: Coverage forclosure of place ofbusiness or childs schoolor place of care

Collective

Bargaining

Agreements

Paid leave subjected to acollective bargainingagreement are excluded

Paid leave subjected to acollective bargainingagreement are excluded

Waiver of any andall requirementsin a CBA in clearand unambiguousterms is permitted

A CBA cannot waive thepaid leave requirementsof the Act unless theCBA provides at least 3days of paid leave

Does not preemptor override theterms of any CBAsin effect onlegislationseffective date

Does not diminishobligations under CBAs thatprovide greater benefits; doesnot apply if CBA e xpresslywaives requirements in clearand unambiguous terms;waiver not be permitted byunilateral terms andconditions of employment(e.g., order to continueworking after CBA expires)

Does not diminish ERobligations under CBAsthat provide greaterbenefits

For EEs in construction ogrocery industry, does noapply if CBA expressly wrequirements. For other Edoes not apply if CBAexpressly waives requiremand provides a comparabbenefit.

Carry Over of

Unused Hours

Yes, For LB up to 56

hours of accrued time

SB up to 32 hours ofaccrued time

ER does not have to payfor unused hours

Yes, For LB up to 56

hours of accrued time

SB up to 32 hours ofaccrued time

ER does not have to payfor unused hours

Yes, SB 40 hours,

LB 72 hours

Yes, SB: 1 hour for every

87 worked, max3days/year

MB: 1 hour for every 43worked, max 5 days/year

LB: 1 hour for every 37,max 7 days/year

Carry up to max of

40 unused accruedhours and ERs do

not have to pay forunused hours

Yes, and ERs do not have to

pay for unused hours

Carry up to max of 40

hours of unused accruedhours

Carry up to 40 hours of u

accrued hours.

Pay for Unused

Hours

No No No No No No No ER must pay EE for unussick time at end of the calyear (excludes retire, sep.

Record Retention Period of 5 years as

required by PA law

Period of 5 years as

required by PA law

Period of 4 years Period of 2 years Period of 3 years Period of 2 years Period of 2 years Period of 3 years

Local Enforcement

Agency

Mayor's Office of LaborStandards or officedesignated my ManagingDirector

Mayor's Office of LaborStandards or officedesignated my ManagingDirector

Office of LaborStandardsEnforcement

Dept of EmploymentServices

CT Dept of Labor Office for Civil Rights City may contract withOregon Bureau of Laborand Industries

Dept. of ConsumerAffairs

Mayors Task Force on Paid Sick Leave December 2014 Page


37/42

Location &

Law/Bill Number

Jersey City (NJ) Newark (NJ) Paterson (NJ)East Orange

(NJ)Irvington (NJ) Passaic (NJ) San Diego (CA) Eugene (OR) California

N.J. Ordinance 13-


1/2014)

NJ Ordinance 13-2010

(2014) (effective

5/2014)

(effective 1/2015) MC3513-2014

Paid Sick

Ordinance 2014

(effective 1/2015)

Ordinance 20390


Ordinance 20537


AB1522

(effective 7/20

Family Members

Covered other

than Self, Child,

Spouse or Parent

Domestic or civilunion partner; spouseunder the laws of any

state; child ofdomestic or civilunion partner; parentor grandparent ofspouse or domesticcivil union partner;grandparent;grandchild; sibling

Domestic or civil unionpartner; child ofdomestic or civil union

partner; parent of spouseor domestic or civilunion partner;grandparent;grandparents spouse ordomestic or civil unionpartner; grandparent;grandchild; sibling

Foster, stepchild, orlegal ward,domestic partner,grandchildren,grandparent, spouseor domestic/civilunionpartner of agrandparent,siblings

Foster, stepchild,or legal ward,domestic partner,grandchildren,grandparent,spouseor domestic/civilunionpartner of agrandparent,siblings

Foster, stepchild,or legal ward,domestic partner,grandchildren,grandparent,spouseor domestic/civilunionpartner of agrandparent,siblings

Domestic partner,grandchildren,grandparent, spouseor domestic/civilunionpartner of agrandparent, siblings

Domestic partner,grandchildren,grandparent, spouseor domestic/civilunionpartner of agrandparent, siblings

Domestic partner,grandchildren, grandparents, siblings, parentsof spouse/domesticpartner

Domestic partner,grandchildren,grandparent, siblings

Domestic ViolenceCoverage and/or

Coverage for

Public Health

Emergency PHE: Coverage forclosure of place ofbusiness or childsschool or place of care

PHE: Coverage forclosure of place orbusiness or childsschool or place of care

PHE: Coverage forclosure of place ofbusiness or childsschool or place ofcare

PHE: Coveragefor closure ofplace of businessor childs schoolor place of care

PHE: Coveragefor closure ofplace of business

or childs schoolor place of care

PHE: Coverage forclosure of place ofbusiness or childs

school or place ofcare

PHE: Coverage forclosure of place ofbusiness or childsschool or place ofcare

DV: DV, sexualassault, stalking

DV: Coverage for DV,sexual assault, stalking

DV: Coverage for Dassault, stalking

Collective

Bargaining

Agreements

Does not diminish ERobligations underCBAs that providegreater benefits. ForEEs covered by aCBA, ordinancebegins to apply upontermination ofagreement.

Does not diminishobligations under CBAsthat provide greaterbenefits; does not applyif CBA expressly waivesrequirements in clearand unambiguous terms;does not apply toexisting CBAs untilexpiration

Does not apply ifCBA expresslywaivesrequirements; doesnot diminish ERobligations underCBAs that providegreater benefits.

Does not apply ifCBA expresslywaivesrequirements;does not diminishER obligationsunder CBAs thatprovide greaterbenefits.

Does not apply ifCBA expresslywaivesrequirements; doesnot diminish ERobligations underCBAs that providegreater benefits.

Does not apply ifCBA expresslywaives requirements;does not diminish ERobligations underCBAs that providegreater benefits.

Paid leave subject tocollected bargainingagreement excluded

Paid leave subject tocollected bargainingagreement excluded

Paid leave subject to bargaining agreemenexcluded

Carry Over of

Unused Hours Yes, but no more than5 days annually

Carry up to 40 ho urs ofunused accrued hours

Carry up to 40hours of unused

accrued hours


accrued hours


accrued hours

Carry up to 40 hoursof unused accrued

hours

Carry up to 40 hoursof unused accrued

paid sick leave task force report

Documents