Important Sick Pay Update for CT Businesses
Have you reviewed your company’s policy regarding Connecticut paid sick leave? Connecticut’s Governor, Ned Lamont, signed legislation in May of 2024 expanding the state’s Sick Leave Law. These changes will take effect on January 1st, 2025. Here are the most notable changes that all employers in Connecticut should be aware of.
1. Lower Threshold
Starting January 1st, 2025, businesses with at least 25 employees, reduced from 50, must provide their employees with up to 40 hours of paid sick leave annually. By January 1st, 2026, the threshold will be reduced to 11 employees. By January 1st, 2027, every employer will be required to provide paid sick leave regardless of how many employees they have.
2. Accrual Rates
Prior to these changes, eligible employees accrued one hour of paid sick leave for every 40 hours worked. Now, eligible employees will accrue one hour of paid sick leave for every 30 hours worked. Employees can carry over up to 40 hours of unused sick leave into the next year. Employers may grant more time off or allow accrual at a faster rate.
3. Expanded Use
- Employees can take sick paid leave for:
- Illnesses, injuries, or health conditions. Whether it is the employee’s or the employee’s family member.
- The medical diagnosis, care, or treatment of the employee or employee’s family member.
- Preventative medical treatment for the employee’s or employee’s family member’s mental or physical health.
- The employee’s own mental health wellness day.
- Other specific situations as defined by the State of Connecticut
Important Notes for Employers Regarding Sick Pay
1. Record-keeping
The law requires employers to keep detailed records of sick leave accrual and usage for at least THREE years. These balances must be shown on wage statements. Failure to maintain these records could result in fines and penalties.
2. Compliance & Communication
Employers must inform their employees of their rights under the new law. All new hires and existing employees hired after January 1st, 2025, are required to receive notice regarding the sick paid leave policy. Employers must also display posters about the paid sick leave rights.
3. Updating Existing Leave Policies
Companies that already offer paid time off or vacation days must ensure that their existing policies align with the new requirements.
4. Preparing for Phased Implementation
Since the law’s requirements will be rolled out in phases (starting with companies with 25 or more employees and eventually encompassing all companies regardless of employees), businesses must stay prepared for each phase. Businesses should understand when they will fall under the new requirements.
5. “Replacement” Employees
Employers are forbidden from searching for a “replacement” employee while someone is out on sick leave.
6. Proof is Prohibited
Employers are also forbidden from requiring employees to provide documentation or proof that paid sick leave is being used for permitted purposes under the law.
Employers should review their current policies regarding paid sick leave and prepare for these changes to take effect. Be sure to plan ahead to mitigate complications. For more information, contact us at 860-496-8119 or visit the State of Connecticut’s website.