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Philadelphia issues regs on mandatory paid sick leave

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in Compensation and Benefits,Human Resources

Philadelphia employers that do business with the city had to begin providing paid sick leave to their employees on July 1, when new provisions of the city’s “21st Century Minimum Wage Standard” went into effect.

Now the city has issued regulations for implementing the mandatory paid leave benefit.

The regulations apply to employers in six categories:

  1. The city of Philadelphia and its agencies
  2. For-profit service contractors and subcontractors with city contracts exceeding $10,000 in a 12-month period
  3. Nonprofit service contractors and subcontractors with city contracts exceeding $100,000 in a 12-month period
  4. Public agencies with city contracts exceeding $10,000 in a 12-month period
  5. Recipients of city leases and concessions that employ more than 25 employees
  6. Recipients of city financial aid, such as grants, loans, loan guarantees, tax incentives, in-kind services, waivers of city fees and real property exceeding $100,000 in any 12-month period.

The amount of sick leave depends on the number of employees.

Employers with five or fewer employees are exempt.

At organizations employing more than five but fewer than 11, employees can receive a maximum of 32 hours of paid sick time in a calendar year.

At employers of 12 or more, employees accrue one hour of paid sick time for every 40 hours worked, up to 56 hours in a calendar year.

Covered employees begin accruing sick time when they start work and can use accrued leave after 90 days on the job. Paid leave can be used in hourly increments for illness, injury or preventive care, as well as to care for a family member.

Note: If you are a Philadelphia employer, determine your status under the new regulations and then review your policies to ensure they comply with the regulation.

Employers that must comply with both the city’s sick leave policy and the federal FMLA may have to make adjustments to leave-tracking software and hourly record-keeping systems.

Consult your attorney to ensure any changes you make comply with the law.

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