Do You Have to Provide Paid Sick Leave?

When you have to provide paid sick leave (and where)

There's no federal paid sick leave law. But roughly 20 states and over a dozen major cities require it — and the rule that applies is wherever your employee actually works, not where your business is. Most use the same basic formula: 1 hour of sick leave earned for every 30 or 40 hours worked, with caps and carryover rules that vary by state.

If you're in one of those states or cities, the cost of getting it wrong compounds. California allows three times the amount owed (or $250 per violation, whichever is larger) plus attorney fees. New York City and Colorado have similar per-violation damages. The biggest exposure usually shows up at termination — combining sick leave with vacation in one "PTO bank" can convert sick days into wages you owe every departing employee.

How to set up a sick-leave policy that holds up

• List every employee's actual work location (state and city).
• Look up sick leave rules for each location — or match California's rules everywhere.
• Never combine sick leave with vacation in California, Colorado, or Massachusetts — it triggers payout.
• If you're in New Mexico or Washington, drop any accrual cap — both prohibit them.
• Post the required state and city notices in your workplace.

How simple policies create back-pay liability

• Combining sick leave with vacation into a PTO bank in California — the whole bank becomes wages at termination.
• Applying your home state's policy to a California remote employee — you owe years of back accrual plus interest.
• Requiring a doctor's note for short absences in California — automatic violation, even if the employee had a note.
• Capping sick-leave accrual in Washington or New Mexico — those states forbid accrual caps; only usage can be capped.

Match California, cover everywhere

California's sick leave rules are the strictest in the country. Match California's rules everywhere — 1 hour per 30 worked, 80-hour balance cap, no doctor's note for short absences — and you cover every other state. The extra labor cost is small; the savings on per-state tracking are large.