Skip to main content
All CollectionsPayroll Compliance and Taxes
2024 - 2025 Updates: Paid Sick Leave Laws
2024 - 2025 Updates: Paid Sick Leave Laws

Employers should annually review their paid time off policies, procedures, and employee handbooks to ensure compliance.

Gina Schrandt avatar
Written by Gina Schrandt
Updated over a month ago

Employers can usually choose whether to give their workers paid time off, such as sick leave. Sometimes, though, you might not have a choice because of where your business is located. State laws about paid sick leave are slowly becoming more common. For example, if your employees work in a state that requires sick leave, you have to follow the rules. It might be necessary to follow the local laws if you have at least one employee working there.

Few federal laws require private employers to provide leave of absence. The majority of states and municipalities give employees more leave than what is required by federal law. At the moment, there is no federal law about sick leave. State-mandated sick pay is, however, mandatory in more than a dozen states and the District of Columbia. But to remain compliant, you have to know about the state sick leave law in the first place.

As of now, paid sick leave laws are in place in about 20 states and 30 local governments. The paid sick leave rules in some of these states and cities were changed in 2023, and they became effective on January 1, 2024. These new or changed laws are summarized below.


2025 Updates

Several states have announced changes to their paid sick leave laws that will take effect in 2025, differing from the 2024 regulations in notable ways:

California

Starting January 1, 2025, California mandates an increase from three to five days of mandatory paid sick leave per year, affecting employees across all sectors. This enhancement aligns with California’s ongoing adjustments to employee benefits and protections​.

California has several important updates to its paid leave laws taking effect in 2025:

  1. Increased Paid Family Leave (PFL) and Disability Insurance (DI) benefits:

    • Beginning January 1, 2025, benefits for low- and middle-income workers will increase to 90% of their regular wages, up from the current 60-70%. This applies to individuals earning up to approximately $60,000 annually. Higher-income workers will continue to receive 70% of wages up to a cap​

  2. Early application for PFL and DI:

    • Workers will be allowed to apply for these benefits up to 30 days before their anticipated leave. This change aims to improve accessibility as part of the Employment Development Department's modernization efforts​

  3. Changes to vacation usage requirements:

    • Employers can no longer mandate the use of accrued vacation leave before employees access PFL benefits. This offers employees more flexibility in managing their leave time​.

  4. Expanded reasons for Paid Sick Leave:

    • Employees can use their sick and safe days to assist chosen or extended family members for safety planning, and job-protected leave is available for similar reasons. This strengthens protections for survivors of violence and their families​.

These changes collectively enhance flexibility, increase financial support, and broaden protections for workers needing leave for family, health, or safety reasons.

Connecticut

Starting January 1, 2025, Connecticut will expand its paid sick leave law to cover employers with 25 or more employees and broaden eligibility criteria for employees and family members, qualifying reasons for leave, and accrual rates​.

Future changes will happen to the employer coverage. Employers will be required to comply with the new law on the following dates, based on the number of employees they have in Connecticut:

  • January 1, 2025: employers with 25 or more employees

  • January 1, 2026: employers with 11–24 employees

  • January 1, 2027: employers with 1–10 employees

Employers should use the number of employees on their payroll during the January 1 payroll cycle to determine employee count.

All employees will be covered by the expanded law, with the exception of seasonal employees who work 120 days or less per year. Broadens definitions to include more employees and family members for coverage. Qualifying reasons have been expanded to include:

  1. Employee’s or their family members’ illness or injury.

  2. Preventative care and mental health wellness days.

  3. Situations involving domestic violence or sexual assault affecting the employee or their dependents.

  4. The closure of their workplace or their family member’s school or place of care by a public health official because of a public health emergency.

  5. Certain reasons related to limiting the exposure to communicable disease.

Employees will accrue paid sick leave at a rate of one hour for every 30 hours worked beginning on the effective date of the law (or their date of hire, if it’s later). Exempt employees accrue leave based on a 40-hour workweek, or the number of hours they usually work if less than 40. Employees will carry over up to 40 hours of unused sick leave from one benefit year to the next. Employers have the option to frontload leave on an annual basis, in which case they don’t need to allow carryover of hours into the next year. Employees must be allowed to use their accrued paid sick leave no later than their 120th calendar day of employment.

Maine

Maine's new Paid Family and Medical Leave (PFML) program will begin collecting contributions on January 1, 2025, and benefits will become available on May 1, 2026. Here's a summary of the changes:

  1. Coverage and contributions:

    • Employers and employees will each contribute 0.5% of an employee's wages, capped at a total of 1%.

    • Employers with fewer than 15 employees are exempt from contributing but must still withhold and remit employees' shares.

    • Self-employed individuals and tribal governments can opt into the program.

  2. Eligibility:

    • Most employees working in Maine are covered, including those employed by public entities (excluding federal government employees).

    • Employees must have earned at least six times the state average weekly wage in the previous year to qualify.

  3. Benefits:

    • Employees can receive up to 12 weeks of paid leave within a 12-month period for various reasons, such as personal or family health conditions, bonding with a new child, or addressing issues related to domestic violence.

    • Compensation will be a percentage of the employee's average weekly wage, with higher replacement rates for lower earnings.

  4. Employer options:

    • Employers can use private plans if they provide benefits equal to or better than the state program, subject to approval.

  5. Administration and compliance:

    • Employers must inform employees of their rights under PFML within 30 days of hire and post-program details prominently in the workplace.

    • Retaliation against employees using PFML is prohibited, and covered employees must be reinstated to the same or an equivalent position upon returning from leave.

This program aligns with existing federal and state leave laws, providing additional financial support to employees while on leave. Employers should prepare for payroll adjustments starting in 2025 and ensure compliance with notification and posting requirements.

Massachusetts

Massachusetts has made several updates to its Paid Family and Medical Leave (PFML) program for 2025, focusing on contribution rates, maximum benefits, and employee notification requirements:

  1. Contribution rates:

    • The total PFML contribution rate remains at 0.88% of eligible wages for employers with 25 or more employees. Employers with fewer than 25 employees contribute at a reduced rate of 0.46%. These rates apply to wages up to the Social Security wage base, which is $176,100 for 2025​JD SupraCBIZ.

  2. Benefit updates:

    • The maximum weekly benefit amount has increased to $1,170.64, up from $1,149.90 in 2024. Employees can use accrued paid leave (e.g., vacation or sick leave) to "top off" their PFML benefits, provided they follow their employer’s policies​JD SupraEmployment Law Business Guide.

  3. Notification requirements:

    • Employers must distribute updated PFML rate sheets to all employees by December 2, 2024. These rate sheets outline how contributions are split between employers and employees. New employees must receive a notice about the program within 30 days of hire and acknowledge receipt​JD Supra.

  4. Employer obligations:

    • Updated posters reflecting the new maximum benefit must be displayed in workplaces. Employers should also review their policies to ensure compliance with the revised regulations on paid leave use and nondiscrimination​JD Supra.

These changes reinforce Massachusetts' commitment to ensuring employees have access to financial support during family or medical leave, while also requiring employers to maintain clear and updated communication.

Michigan

Beginning February 21, 2025, Michigan will require employers of all sizes to offer paid sick leave under the Earned Sick Time Act (ESTA). This change, resulting from a Michigan Supreme Court ruling, replaces the more restrictive Paid Medical Leave Act. The act also expands the qualifying reasons for sick leave and includes more family members in its definition​.

  1. Broader employer coverage:

    • All employers with one or more employees are now required to provide paid sick leave. This contrasts with the PMLA, which applied to employers with 50 or more employees​

    • ESTA eliminates many of the exemptions under PMLA. Full-time, part-time, seasonal, and temporary workers are now eligible for paid sick leave .

  2. Sick leave:

    • Employees accrue one hour of paid sick leave for every 30 hours worked, up to a maximum of 72 hours per year.

    • Smaller employers will need to offer 40 hours of paid leave plus 32 hours of unpaid leave.

    • Unused sick leave can roll over annually, but the annual use limit remains at 72 hours.

  3. ​Increased eligibility:

    • Paid sick leave can be used for:

      • Personal or family member’s illness, injury, or health condition.

      • Preventative medical care.

      • Addressing domestic violence, sexual assault, or stalking issues.

    • The definition of "family member" has been broadened to include relationships such as grandparents, grandchildren, and other dependents.

  4. Employers must inform employees about their rights under ESTA, and retaliating against employees for using sick leave is prohibited.

    • Employers are subject to penalties for noncompliance, including fines and back pay to affected employees.

The ESTA significantly enhances protections for Michigan workers, making paid sick leave more accessible and comprehensive than under the previous law.

Oregon

Paid Leave Oregon will allow employees to take leave for legal processes related to foster child placement or adoption starting January 1, 2025. It also covers family and medical leave under specific conditions​.

This applies to all employers, but those with fewer than 25 employees are exempt from contributing to the program. Employees are eligible for up to 12 weeks of paid benefits annually, with an additional two weeks for pregnancy-related conditions​. It also expands the qualifying reasons:

  1. Family leave for bonding with a new child or caring for a family member with a serious health condition.

  2. Medical leave for employee health issues requiring significant treatment or recovery, including pregnancy and organ donation.

  3. Safe leave for reasons such as domestic violence or harassment.

Washington

Effective January 1, 2025, Washington will extend its paid sick leave law to include additional qualifying reasons, such as emergency-related closures of workplaces or childcare facilities, and redefine "family members" to include household residents reliant on the employee​.

The redefined family members are:

  1. "Family member" now includes any individual residing in the employee's home, provided there is an expectation of care, excluding those who simply live there without a dependency relationship.

  2. A “child” includes the spouse of the employee's child.

  3. “Grandparents” and “grandchildren” are now specifically defined as the parents or children of the employee's children​

Employers in Washington should update their policies and employee handbooks to align with these changes before January 1, 2025, to remain compliant. These updates enhance the flexibility of leave for employees, reflecting a more inclusive understanding of caregiving relationships and emergencies​


2024 Updates

California

Employers who have at least one worker in California for at least 30 days in a year must follow California's paid sick leave law. The new changes to the law will raise the minimum amount of paid sick leave that an employer must give to their workers. They will also raise the limits on how much sick leave an employee can earn and use each year.

As of January 1, employers can follow the new law in one of three ways:

  1. Provide workers with an annual grant that is upfront-loaded and equivalent to either 40 hours of work or 5 days of sick leave.

  2. Grant 1 hour of paid sick leave for each 30 hours worked to employees.

  3. Implement a sick leave policy that allows for the gradual accumulation of leave hours, specifically granting one hour of leave for every 30 hours worked. This policy ensures that employees will have a minimum of 24 hours of accrued leave by either the 120th calendar day of employment or within each consecutive 12-month period. Additionally, employees will have no less than 40 hours of accrued leave by the 200th calendar day of employment or within each consecutive 12-month period.

The California amendments also raise the maximum amount of paid sick leave that can be accumulated from 48 hours to 80 hours and the maximum amount of paid sick leave that can be used from 24 hours, or three days, to 40 hours, or five days per benefit year.

Read more on California's website here.

Illinois

Illinois has updated its sick leave laws. According to the Illinois Paid Leave for All Workers Act (PLFAW), employees can now take paid sick leave for any reason. Within Illinois, the PLFAW Act applies to all employers with one or more employees. This includes state and local governments. The PLFAW also applies to every employee working for an employer in Illinois.

Employees accrue a minimum of 40 hours of paid leave per year, or one hour for every 40 hours worked, per the PLFAW. Conversely, employers have the option to provide employees with 40 hours of paid sick leave in advance, commencing on the designated 12-month period or the first day of employment. Starting on March 31, 2024, or 90 days after their start date of employment, employees are eligible to utilize paid sick leave. Employers who utilize the accrual method (as opposed to the frontloading method) are obligated to transfer unused but accrued PLFAW leave to their employees from one year to the next. However, they are permitted to impose a 40-hour annual restriction on the benefit.

In addition to only allowing certain authorized uses of paid sick leave, the amended PLFAW says that employers cannot make workers show proof or documentation when they ask for paid leave, and workers can use paid leave for any reason. Any paid leave provisions enacted or modified by local ordinances in Illinois must comply with the PLFAW. The new law has exceptions for businesses with employees in the City of Chicago and Cook County, both of which have existing paid sick leave ordinances in place.

Read more on Illinois's website here.

Chicago

The Chicago Paid Leave and Paid Sick and Safe Leave Law was changed by the City Council in November. The changes take effect on December 31. However, the council voted earlier this month to put off the start date until July 1.

According to the new ordinance, employers must give eligible workers at least 40 hours of paid leave each year, which can be used for any reason. They must also give workers an extra 40 hours of paid sick leave each year, which can be used for medical care, treatment, or diagnosis for themselves or their family members. The new law lets workers carry over up to 16 hours of earned but unused paid leave and up to 80 hours of earned but unused paid sick leave to the next benefit year. An employee can only use 40 hours of paid leave and 40 hours of paid sick leave in a year, according to the law.

It is also not required that employers give back paid sick leave that was earned but not used when an employee is fired. However, depending on the size of their workforce, some employers may have to do so:

  • 101 or more employees: upon termination, an employee must be compensated for all unused accrued paid leave.

  • Between 51 and 100 employees: all unused accrued paid leave must be paid on or after July 1, 2025, except for a maximum of 16 hours of paid leave until July 2025.

  • Employers with 50 or fewer workers are not obligated to compensate workers for any unused paid leave.

The updated Chicago Paid Leave and Paid Sick and Safe Leave Act applies to all employees who put in at least 80 hours for a company in Chicago during any 120-day period.

Read more on Chicago's website here.

Minnesota

Earned Sick and Safe Time (ESST) is a new law in Minnesota that applies to all employees who work at least 80 hours a year in Minnesota and are not independent contractors, except federal government workers. This includes temporary and part-time workers. For every 30 hours worked, employees must earn at least one hour of ESST leave. However, an employer can limit an employee's annual ESST leave to 48 hours. Employers may choose to give 48 hours of leave all at once at the start of each year or when a worker starts, instead of letting leave build up over time.

Additionally, unless the employer pre-loads the following, employees may carry over up to eighty hours of accrued but unused sick leave from one year to the next:

  1. 48 hours of leave and pays employees for accrued, unused leave at the end of the year

  2. 80 hours of leave and does not pay employees for accrued, unused leave at the end of the year.

The law lists certain situations when ESST leave can be used, such as for the diagnosis, care, or treatment of an employee's or a family member's illness or medical condition. At the end of each pay period, employers must give their workers a list of all the ESST hours they have earned and are ready to use, along with the number of hours they used during that pay period. Employers should note that local ordinances are still in effect in Bloomington, Duluth, Minneapolis, and St. Paul and will need to make sure their leave policies are compliant with each.

Read more on Minnesota's website here.

Washington

Law changes in Washington that go into effect next year will only affect certain construction workers. Washington law currently says that workers can use their earned paid time off starting on their 90th day of work. Since many construction jobs are short-term, this rule often hurts workers because many of their jobs are finished in less than three months. As of January 1, however, Washington employers will have to pay residential building construction workers who have been fired and have not met the 90-day eligibility requirement the rest of their paid sick leave that they have earned but not yet used. However, if a Washington employee is rehired within a year of being fired, their unused and accrued paid leave will not be reinstated. This is not the case for construction workers who are rehired within a year.

Read more on Washington's website here.


This information is not intended to serve as legal or tax advice and is provided as a courtesy; it is subject to change. We try to keep the information in this article current, and new laws may go into effect.

Did this answer your question?