Effective January 1, 2018, all employers, whose employees’ primary worksite is located in Vermont, will be required to offer their employees paid sick leave. Below is some important information on the upcoming act and how to set up a compliant paid sick leave policy inside OnPay.
Important Vermont Compliance Details
- An employee will earn 1 hour of paid sick leave for every 52 hours worked (including overtime). An employee will be eligible to use up to 24 hours of sick leave in 2018, to be increased to 40 hours in 2019 and each year after. If the employer chooses this option, the employees must be allowed to carry over up to 24 hours (40 hours in 2019 and after) of unused paid sick time into the next year.
- If the employer would rather provide their employees with a lump sum of 24 hours each year (40 hours in 2019 and after), they can choose to do so. If the employer chooses this option, they are not obligated to allow an employee to carry over unused paid sick time into the next year
- An employee must begin accruing sick leave upon their first day of employment, but the employer can implement a 1-year waiting period before the employees can use the paid time off.
- If an employee leaves an employer and then returns, follow this chart in regards to actions that need to be taken in regards to the employee’s paid sick leave accrual:
- United States government employees
- Employees who work for an average of fewer than 18 hours per week
- Seasonal employees who are employed by an employer for 20 weeks or less in a 12 month period.
- Certain exempt state employees who are not covered by the collective bargaining agreement
- Per diem healthcare workers
- Substitute teachers, except for long-term substitutes
- Minors under the age of 18
- An individual that works on a per diem or intermittent basis
- Individuals that are either:
- A sole proprietor or partner owner of an unincorporated business who is excluded from the definition of employee
- An executive officer, manager, or member of a corporate or a limited liability company for whom the Commissioner has approved an exclusion from the provisions of chapter 9 of Title 21.
Reasons Employees Can Use Sick Time
- When the employee or employee’s child, parent, grandparent, spouse, or parent-in-law is sick or injured.
- To obtain health care, preventive care, or travel to an appointment related to their long-term care
- To address the effects of domestic violence, sexual assault, or stalking
- To care for a family member because the school or business where the family member is located is closed for public health or safety reasons
Setting Up The Policy in OnPay
Calculation Information: The first level is set to allow the employees to hold 24 hours because the law states that this is the limit for 2018, in 2019 this moves to 40 hours. The per hour accrual rate of 0.0192 is determined by dividing 1 hour worked by 52 hours.
The bottom number of levels 1, 2, and 3 is the balance cap and it will keep the employee from having a balance higher than 24 hours in the first year and 40 hours in each of the years going forward. Please keep in mind the balance cap will not stop the employee from accruing or using more than the hours listed in a given year. The amount used and accrued by the employee should be monitored by the employer.
In January 2019, or after, please move the hours in all three levels to 40.