This article was last updated on March 3, 2025.

The Growing Complexity of Paid Sick Leave Laws

Unlike many other developed nations, the United States does not have a federal mandate requiring private employers to provide paid sick leave. Instead, a patchwork of state and local paid sick leave laws has emerged, making compliance a moving target for HR teams and business owners. For companies operating across multiple jurisdictions, understanding the nuances of these laws is crucial to maintaining compliance and supporting employee well-being.

Why Paid Sick Leave Matters for Employers

Providing paid sick leave isn’t just a compliance obligation—it’s a key factor in workforce productivity, retention, and overall employee health. Without adequate paid sick time, employees may come to work while ill, putting others at risk and potentially reducing overall workplace efficiency. Studies have shown that businesses offering paid sick leave experience lower turnover, improved morale, and stronger employee engagement.

Paid sick leave can also serve as a vital tool in recruitment and retention, particularly in competitive labor markets. Employees today increasingly prioritize workplaces that support their overall well-being, and paid sick leave is an essential part of that equation.

The Risk of Manual Tracking in a Complex Compliance Landscape

With new paid sick leave laws being introduced and existing ones frequently amended, employers who rely on manual processes for tracking time and leave may find it increasingly difficult to keep up. Tracking accruals, usage, carryovers, and local variations manually not only increases administrative burden but also elevates the risk of compliance errors that could lead to costly penalties.

For businesses operating across multiple states or with remote teams spread across jurisdictions, these complexities multiply. Differences in accrual methods, carryover limits, and qualifying reasons for leave make a one-size-fits-all policy nearly impossible. Without automated time tracking and labor management solutions that adapt to specific jurisdictional rules, the risk of miscalculations, overlooked updates, and noncompliance increases significantly.

Given the growing complexity of paid sick leave laws, businesses are finding value in unified human capital management platforms that automate time tracking and leave management. These solutions help ensure accruals align with specific jurisdictional rules, provide clear visibility to employees and managers, and adapt seamlessly as regulations evolve—reducing errors, supporting compliance, and easing the administrative load on HR teams.

Common Qualifying Reasons for Paid Sick Leave

Paid sick leave laws extend beyond traditional illness. Employers must account for:

  • Physical and mental health care
  • Preventive medical visits
  • Family member care
  • Recovery and assistance for victims of domestic violence, sexual assault, or stalking
  • Public health emergencies or severe weather closures
  • Prenatal care and pregnancy loss

Additionally, some jurisdictions allow paid sick leave to be used for:

  • School closures or childcare disruptions
  • Bereavement following the loss of a family member
  • Quarantine periods during public health crises

Staying informed about these qualifying reasons ensures that employees can access their entitled leave and employers remain compliant with local regulations.

State Paid Sick Leave Requirements in 2025

Currently, 18 states and the District of Columbia have enacted laws requiring employers to provide paid sick leave to employees. Some of these laws permit small employers (as defined by each law) to provide unpaid sick leave instead. States with additional local jurisdiction paid sick leave laws are marked with an asterisk (*).

State or District Which Employers Must Provide Paid Sick Leave?
Alaska Effective July 1, 2025

All employers

Arizona All employers
California* All employers
Colorado All employers
Connecticut Effective January 1, 2025: Employers with 25 or more employees must provide paid sick leave.

Effective January 1, 2026: Employers with 11 or more employees must provide paid sick leave.

Efffctive January 1, 2027: Employers with one or more employees must provide paid sick leave.

District of Columbia All employers
Maryland* Employers with 15 or more employees must provide paid sick leave.

Employers with fewer than 15 employees must provide sick leave, but it may be unpaid.

Massachusetts Employers with 11 or more employees must provide paid sick leave.

Employers with fewer than 11 employees must provide sick leave, but it may be unpaid.

Note: Effective November 21, 2024, the law was amended to allow employees to use sick leave to support their own or their spouse’s needs following pregnancy loss or a failed assisted reproduction, adoption, or surrogacy.

Michigan Effective February 21, 2025: Employers with 11 or more employees in the state must provide paid sick leave.

Effective October 1, 2025: Employers with fewer than 11 employees must provide paid sick leave.

Minnesota* All employers

Note: The law requiring paid sick leave was amended in 2024.

Missouri Effective May 1, 2025

All employers

Nebraska Effective October 1, 2025

All employers

New Jersey* All employers
New Mexico All employers
New York* Employers with five or more employees or a net income of more than $1M must provide paid sick leave.

Employers with fewer than five employees and a net income of less than $1M must provide sick leave, which may be unpaid.

Note: Effective January 1, 2025, all New York employers must provide up to 20 hours of paid prenatal personal leave to eligible employees. This leave is in addition to the sick leave requirements.

Oregon Employers with 10 or more employees (six or more if they have a location in Portland) must provide paid sick leave.

Employers with fewer than 10 (or fewer than 6 if they have a location in Oregon), must provide sick leave, but it may be unpaid. (Portland-specific rules are part of the statewide law.)

Rhode Island Employers with 18 or more employees must provide paid sick leave.

Employers with fewer than 18 employees must provide sick leave, but it may be unpaid.

Vermont All employers

Local Jurisdictions with Paid Sick Leave Requirements

Numerous local jurisdictions also have paid sick leave requirements. While some of these jurisdictions are located within states that have statewide paid sick leave laws, others—like Chicago—have their own local requirements even though their state may not have a statewide mandate. These local laws add another layer of complexity for multi-jurisdiction employers. Examples include:

  • California cities: Berkeley, Emeryville, Oakland, San Francisco, Santa Monica, San Diego, Long Beach (hotels), Los Angeles, West Hollywood
  • Chicago
  • Montgomery County, Maryland
  • Minnesota cities: Bloomington, Minneapolis, St. Paul
  • New York City
  • Pennsylvania cities and county: Philadelphia, Pittsburgh, Allegheny County
  • Washington cities: Seattle, Tacoma, SeaTac (hospitality and transportation industries)

Best Practices for Compliance

To stay ahead of changing paid sick leave laws, businesses should:

  1. Regularly Review Policies – Ensure policies align with state and local requirements and update them as needed.
  2. Train Managers and HR Teams – Equip leaders with the knowledge they need to properly administer sick leave policies and avoid retaliation claims.
  3. Leverage Technology – Use a centralized system that automates tracking of leave accruals, enforces jurisdictional rules, and reduces the administrative burden of compliance.
  4. Coordinate Leave Policies – Align sick leave with other benefits like PTO, FMLA, and paid family leave to prevent overlap and gaps in coverage.
  5. Seek Legal Guidance – If operating in multiple jurisdictions, consult employment law experts to ensure full compliance.

Simplifying Sick Leave Management

Managing sick leave accruals and usage doesn’t have to be complicated. With Inova HCM, tracking employee sick leave is simplified through automated time and labor management tools. Employees can easily view their available balances and request time off without needing to go through a manager, while built-in compliance features help your business adhere to both current and emerging sick pay laws—reducing risk and administrative burden.

As paid sick leave laws continue to change, having the right technology in place keeps your business ready for what’s next. Contact us today to learn how we can help.

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