Payrolling & Paid Sick Leave Laws: What Employers Need to Do

If you’ve been waiting to look into the new paid sick leave laws until the dust settles, you can be assured the dust won’t settle and the time is now. Here’s what you need to do to get your payrolling in good shape and your people covered:

Know YOUR Rules:

From state to state and sometimes county to county, there is very little consistency in the rules for accrual and usage. Rules can change as an employee crosses city lines or even zip codes, creating a nightmare for employers to manage. It can get confusing.

Especially if your employees operate in more than one location (where guidelines differ) it can be worthwhile to find a contract payroll management partner that has software in place to track and manage the details automatically.

For example, PayReel OnLine’s Sick Leave Accrual Management (SLAM) system runs in the background, with no interaction needed on your part, to ensure full compliance for all PayReel employees working on your behalf.

Such a system automatically analyzes each employee’s timesheet, calculating hours accrued by location during that time period, and maintains an employee-specific balance. The system also allows employees to use accrued sick time only when the law allows, and with a supervisor’s approval.

No matter where your business operates, make sure you (or your payroll partner) is at the forefront of mandatory paid sick leave laws so employees are treated fairly and everyone remains compliant.

Monitor Accrued Time:

If you elect to pay contractors yourself, make sure you have a system in place to monitor updates in regulations as they are constantly evolving. You’ll also need to stay on top of how, when and where sick leave is earned and used.

Establish Your Internal Process:

Establish an internal process to be followed across your organization. For example, how will employees request sick time and have it approved? Who will be accountable for the regulation and administration of this program?

Want a little more background? Here’s what you need to know.

Need to determine whether your workers are actually employees? Visit our Worker Classification Employee series for more.

About PayReel:

PayReel’s clients, who are some of the biggest companies in the world, are constantly immersed in the chaos of producing multimedia content or executing live events. PayReel makes sure they have the right contractors at the right time in the right place, and that everyone gets paid properly. And, most importantly, they handle every last detail perfectly while making sure their clients think nothing of it, so they can get back to doing what they do best.

What You Need to Know About Paid Sick Leave Laws

If you’ve been waiting to look into the new paid sick leave laws until the dust settles, you can be assured the dust won’t settle and the time is now. Here’s what you need to know to get your payrolling in good shape and your people covered.

The Times, They are a Changin’

The past few waves have seen a wave of new laws enacted across the US requiring employers to provide paid sick leave to employees. Regulations are now in place in four states, 20 cities and one county, and those numbers are only going in one direction—up.

This chart provides a comprehensive list of geographies and specifics.

Laws are Inconsistent

There is very little consistency in the rules for accrual and usage from one area to the next. Rules can change as an employee crosses city lines or even zip codes, creating a nightmare for employers to manage.

If They’ve Earned It, They Can Take It

If an employee is scheduled for an upcoming project and has accrued a sufficient amount of sick time and is eligible to use it based on local laws, they have the right to call in sick and be paid for time they missed work.

However…

An employee must be scheduled for work, and must have previously worked a sufficient amount of hours to accrue paid sick leave in the location where they are scheduled for work.

Paid sick time can only be used in the geography where it was accrued and each location has specific restrictions on accrual and usage.

Sound like a nightmare to keep track of? Check out this blog post for help.

Paid sick leave laws apply to employees and not independent contractors, which is another fun challenge to keep straight. Need to determine whether your workers are actually employees? Visit our worker classification series for more.

About PayReel

PayReel’s clients, who are some of the biggest companies in the world, are constantly immersed in the chaos of producing multimedia content or executing live events. PayReel makes sure they have the right contractors at the right time in the right place, and that everyone gets paid properly. And, most importantly, they handle every last detail perfectly while making sure their clients think nothing of it, so they can get back to doing what they do best.

Classifying Employees and Independent Contractors—A Worker Classification Cheat Sheet

Employee misclassification is on a lot of people’s minds. Hillary Clinton has even made it a part of her campaign. It’s pretty irritating that the rules are confusing, vary from state to state, and are often subjective, but there are a few standards that remain true across the board.

If you want to get all the rules straight from the horse’s mouth/in the government’s own words, you can get the whole scoop right here. This covers the 20 factors they consider in full, governmental legalese.

Skip the legalese and give me the highlights, you say? You got it. According to this article on Forbes, a few consistent factors apply to “most worker status cases.” Should you find yourself trying to defend your worker classification choice, the following elements are most likely to be considered:

  • The employer’s degree of control over the worker
  • The worker’s opportunity for profit or loss
  • The worker’s investment in facilities
  • How long-term the relationship is
  • The worker’s skill set

As you are classifying and auditing your current classifications, start by examining the basics above and dig deeper when you’re ready.

In the meantime, check out our series on the subject:

Worker Classification: Top Ten Classification Compliance Mistakes

Worker Classification: 5 Reasons Companies Can’t Ignore Compliance Rules

Worker Classification: What’s the Problem And Why Should You Care?

About PayReel:

PayReel’s clients, who are some of the biggest companies in the world, are constantly immersed in the chaos of producing multimedia content or executing live events. PayReel makes sure they have the right contractors at the right time in the right place, and that everyone gets paid properly. And, most importantly, they handle every last detail—right down to worker classification—perfectly while making sure their clients think nothing of it, so they can get back to doing what they do best.