Kimberly A. Brown
Norbert Dean, CPSM
Thomas W. Derry
Beverly Gaskin, CPSM
General Motors Company
Christopher J. Ledger
Palo Alto Networks
Chae-Ung Um, CPSM, C.P.M.
REVISITING SICK-LEAVE POLICIES
In the past several years, at least seven states and some municipalities have adopted
new laws regarding paid sick leave. Most of these laws — which differ by locale and,
in some cases, include part-time as well as full-time workers — address the accrual
of paid sick leave.
They also clarify what sick time can be used for.
For example, under the new Arizona rule, companies
with 15 or more employees must allow employees
to use or accrue 40 hours of paid sick leave per
year (the figure is 24 hours for firms with fewer than
15 employees). The Arizona law, which went into
effect on July 1, also states that accrued sick time
can’t be forfeited if not used by a certain date.
The new laws are causing companies to rewrite
policies on employees’ use of sick time. These laws
affect how organizations:
Bank time off. Companies that have one bank
of paid time off (PTO) will now need to create a
separate bank for paid sick-time accrual.
Operate financially. The new laws could result
in additional cost burdens on supply management
organizations and their companies by:
• Affecting staffing levels
• Leading to new or additional expenditures
relating to paid sick time (for example, paid sick
time for part-time employees previously wasn’t
an issue for most companies)
• Increasing the cost of goods.
Operate organization-wide. These new rules
create challenges for companies that operate in
numerous affected locations. Instead of drafting
one sick-leave policy relevant to all employees,
companies may have to draft several policies.
A reason for emerging state and municipal laws is
the absence of a federal law regarding paid sick
time. The Family and Medical Leave Act provides
certain qualifying employees up to 12 weeks of
unpaid, job-protected leave per year but does not
address paid sick time.
Supply management organizations, and their
companies, must be prepared to change their
policies to adhere to these new rules — and realize
that adoption of sick-leave regulations will only
become more prevalent across the country. ISM
BY TRINA DEWITT
Trina De Witt
Director of Human Resources
Institute for Supply Management®