Accrual Structure

• 1 hour of paid sick leave is earned for every 30 hours worked
• Full-time employees may reach the 56-hour cap annually
• Part-time employees accrue leave proportional to hours worked

Permitted Use

Sick leave may be used for:

• The employee’s own medical needs
• Care for a family member
• Circumstances to support health recovery
• Situations where staying home helps prevent workplace illness transmission

Benefit Carryover

• Unused hours may carry forward to the next year
• Employers are not required to pay out unused leave upon termination
• If an employee leaves and returns to work with the same covered contractor within 2 months, previously earned unused leave must be fully reinstated

Interaction with Existing Laws

This federal contractor leave rule:

• Does not override any state, federal, or union agreement
• When another governing rule such as collective bargaining provides greater leave benefits, the more generous standard must be applied

Public Debate Around the Executive Order

The expansion has resulted in differing viewpoints:

• Supporters believe expanded paid sick time improves workplace safety by reducing illness spread and increases hiring competitiveness for federal contractors seeking skilled workers.
• Critics argue the order may raise business costs, place administrative strain, and influence employment availability or hiring trends.

Who is Covered?

The new sick leave provisions apply to employees whose wages fall under:

• Davis‑Bacon Act
• Service Contract Act
• Fair Labor Standards Act

Effective Date

• The rule became enforceable on January 1, 2017

Guidance for Workers & Employers

This change enables many contractor-based employees to maintain job continuity during medical recovery periods without losing pay stability. Employers operating under covered federal contracts should update leave policies, accrual tracking, and rehiring procedures to ensure compliance.

For analysis of rights or contractor leave policy obligations, legal counsel or HR compliance review may help clarify organizational risk, liability, and employee entitlements.

For questions about this new regulation or if you have questions about working for a federal contractor, contact our office to speak with an employment law attorney.

Variations on the Sick Leave Law

• Businesses employing more than 10 workers are required to provide paid sick leave;
• Businesses employing 10 workers or fewer are required to provide unpaid sick leave;
• Employee calculations include full time, part time and temporary workers;
• Sick leave accrues at a rate of one hour per 30 hours of work, with a maximum of 40 hours; and
• Sick leave cannot be used until employees have worked at least 90 hours.

Under the law, employees may use their accumulated sick to care for themselves or an immediate family member. Doctors’ appointments, home care and illness are all covered under the legislation. The law also includes a provision for victims of domestic violence who need to deal with psychological, physical or legal ramifications.

In 2014, Massachusetts voters passed a statewide earned sick time law aimed at expanding workforce protections in the private sector. The regulation took effect on July 1, 2015, requiring most employers to allow workers to accrue and use up to 40 hours of sick leave per year.

Paid vs. Unpaid Sick Leave Requirements

Employers with more than 10 workers must provide paid sick leave

• Employers with 10 or fewer workers must provide unpaid sick leave
• Worker count includes full-time, part-time, and temporary employees

Sick Leave Accrual & Eligibility Rules

Valid Reasons Employees Can Use Sick Time

Workers may use accrued leave for:

✔ Personal illness or injury
✔ Caring for an immediate family member
✔ Medical and doctor appointments
✔ Recovery that requires home care support
✔ Domestic violence situations, including physical, psychological, or legal assistance

Eligible situations involving domestic violence also cover time needed for court visits, counseling, medical treatment, and legal planning.

Key Workplace Protection Themes in the Law

• Eliminates loopholes based on unfair staffing structure
• Applies to extremely broad range of workers, including temporary staff
• Allows leave for both medical needs and safety-related emergencies
• Prevents employers from restricting use to employee-only illness
• Creates a compliance standard for transparent accrual tracking

This law reportedly makes Massachusetts only the third state mandating paid sick leave. If you have any questions about the legislation or additional sick leave questions, contact us today.

The Law’s Details

Employers of one domestic worker are subject to the following provisions:

• Employees must work with the employer for at least one year;
• Employees must work at least 80 hours per calendar year; and
• Employees are entitled to receive two paid sick days at their regular rate of at minimum wage.

Employers of one to four employees are subject to these provisions:

• Employees must work at least 80 hours per calendar year; and
• Employees are entitled to up to 40 hours of unpaid sick leave.

Employers of five or more employees are subject to these provisions:

• Employees must work at least 80 hours per calendar year; and
• Employees are entitled to receive up to 40 hours of paid sick leave at their regular rate of at least minimum wage.

Employers must give written notifications describing the rights of the employee. Employers should include information about the employee’s right to file a complaint with the Department of Consumer Affairs, without fear of retaliation.

If you have any questions about the legislation or any other sick leave questions, contact us today

Paid and Unpaid Leave Rules by Company Size

• Companies with 5 or more employees must provide 40 hours of paid sick leave each year.
• Companies with fewer than 5 employees must provide 40 hours of unpaid sick leave.
  The law protects workers no matter the industry or job title.

When Workers Can Use Sick Hours

Employees can use sick hours for:
• Personal illness
• Family member sickness
• Public health emergencies
• School closures due to health risks
Parents can claim leave when their child’s school closes during a crisis. Workers can also support sick relatives without fearing job loss.

Unused Sick Hours Policy

Companies must roll unused hours into the next year. Employers may also pay out unused hours if policy allows. This helps workers plan long-term health and family care.

How This Law Helps Workers

Sick leave offers real benefits for employees and families. Here are key improvements:

• Workers recover without stress.
• Families get protected care time.
• Parents manage school closures safely.
• Staff see doctors and rest before returning.
  The law also helps companies. Healthy workers improve productivity when they return. Sick teams reduce attendance, so illness spreads less. This protects the workplace and customers too.

Company Responsibilities Under This Law

Businesses must now take clear steps:
✅ Track sick leave hours
✅ Train HR teams
✅ Document policies
✅ Follow top-up pay rules when needed
Firms must follow hiring and benefits rules under labor standards from the United States Department of Labor.

A Growing Model for Other Cities

Many labor experts say NYC’s act sets a strong example. Several cities study similar laws for worker health and family care. It shows that fair illness support reduces burnout. Loyal staff also stay longer at firms that follow clear care policies. This builds long-term trust in work communities. The act marks a major worker-first policy step in New York State.