by Gary Karnedy Vermont’s new sick leave law takes effect January 2017 (January 2018 for those who employ five or fewer employees). Although you still have seven months to determine how this law applies to your business, it would be wise to start reviewing your current policies and planning for the remainder of 2016 now. This will ensure a smooth transition once the new, and somewhat complex, law goes into effect.
The question and answer series below highlights some of the more pressing issues surrounding Vermont’s new sick leave law.
- I want to hire five new employees next January. If they ask me for sick time off on their third day of work, do I have to pay them for it?
It depends. Determine whether you currently have a written paid sick leave policy that provides employees with immediate access to paid sick days. If you don’t have a more ‘generous’ written policy, the new Vermont law would govern. Under the new law, the employer may impose a one-year waiting period for new employees. These employees can accrue sick time during 2017, but they’re not permitted to use the time until completion of the one-year waiting period.
- I started a small microbrewery three years ago. I have four full-time employees. In the summer months, I brew more beer and increase my work force to ten employees for June, July, and August. If I bulk up again in the summer of 2017, can those six additional summer employees ask for paid sick time off?
They can always ask for paid time off, as well as free beer, but they may not receive either.Based on the requirements of the new Vermont law, employees working in a job that is scheduled to last 20 weeks or fewer, and in fact lasts 20 weeks or fewer, are not entitled to paid sick leave under the statute. But check to see if your company has an existing paid leave allowance, separate and apart from the new law
- I have a growing New Hampshire construction company based in West Lebanon. We have a big job in Norwich that is going to last three years. Five of my long-term New Hampshire employees will be crossing the river each day to work on the Vermont job. Do I have to pay these workers for sick leave?
Although the statute doesn’t clearly answer this question, it does broadly define employers covered by the law to include a company “doing business in or operating within the state”.
- Our current Human Resource employee manual provides our employees with 10 days of paid vacation, but no paid sick days. Does the new law require that I provide additional paid time off for sick days?
The Vermont law defines a paid-time-off policy broadly, to include any combination of vacation leave, personal leave, sick leave, or similar. To eliminate confusion for your employees, you should consult with your attorney to update the policy prior to 2017.
- One of my employees is a foster parent for a child with a disability and takes a fair amount of unpaid leave to take the child to medical appointments. Does the law require that we now pay her for this time off for each one-hour appointment?
Yes, the law allows employees to use earned sick time to take most family members, including foster children, to medical appointments. The increments of time off can be as small as your payroll system uses, but not less than an hour.
- I have two employees who want to swap shifts to avoid using their paid time off. Is that legal?
Yes, the Vermont law allows employees to trade hours as long as they are an equivalent number of hours, occur during the same pay period, and the employer agrees.
- We provide paid sick leave at my company, but have a “use it or lose it” policy for each calendar year. Does this policy comply with the new Vermont law?
The short answer - run this by your attorney because, quite frankly, the statute is a bit confusing. Generally speaking, employers are required by the new law to have unused time carry over into the next year, but there are different caps on the number of hours that can be used in a particular year. To further complicate matters, those caps will change during 2017 and 2018.
- I am a small employer, with only two employees. I’m not even incorporated. The law doesn’t apply to my company, right?
Wrong. The statute broadly defines ‘employer’ to include individuals. Employees are defined as anyone who is employed, on average, no less than 18 hours a week. Unlike some other employment laws, there is no carve-out for small employers.
Gary Karnedy is the Managing Partner and Chair of the Primmer Law firm, a forty-six lawyer full service firm with offices in Vermont, New Hampshire, Maine and the District of Columbia. He provides employment law advice to employers and defends employment claims both administratively and in court. Gary also serves as Chair of the Vermont Labor Relations Board.