If an employee gets sick after using all of their Paid Time Off (PTO) for the year, am I obligated to grant them additional paid time for sick leave?

Overview of Federal Law There is no federal law requiring employers to provide sick leave, paid, or unpaid. As an employer, you are only required to provide the amount of PTO that you agreed to provide in the employment contract or agreement. If you do grant PTO, and an employee uses all of their PTO, […]

Bookmark(0)

No account yet? Register

2018 HSA contribution limit

Overview of Federal Law

There is no federal law requiring employers to provide sick leave, paid, or unpaid. As an employer, you are only required to provide the amount of PTO that you agreed to provide in the employment contract or agreement. If you do grant PTO, and an employee uses all of their PTO, you are not required to pay for any additional time taken off for sickness, health related issues, or any other reason. The Federal Family and Medical Leave ActFMLA does require you to give eligible employees time off to care for themselves or families, but FMLA doesn’t require the time to be paid. Check out this answer for more information regarding PTO for salaried employees.

Overview of State Law

Be sure to check with your state’s laws to ensure compliance. Michigan, for example, does not have any specific state laws concerning PTO.

Consider

Some companies prefer to divide PTO into categories such as sick leave, vacation, personal days, etc., with a defined amount of time allowed to be taken off for each category. Other companies find it easier to group together all of the potential time off as PTO.

However, grouping sick leave, vacation, family emergency, and emotional health days into the same PTO category can lead to the unintended consequence of having employees use up their PTO, and then being forced to miss work later in the year if they get sick. To prevent this problem, it’s wise to counsel your employees to save some of their PTO for sick days. If you offer employees 10 days of PTO per year, for example, you may want to advise onboarding employees to think of their PTO as one week of vacation (5 days), 4 days for sickness or unexpected emergencies, and one day for their birthday.

Helpful Links

Michigan Sick Leave: What You Need to Know – BIR

Time Off – Salary.com

Bookmark(0)

No account yet? Register

Might also interest you