Preparing for paid sick leave legislation with benefits administration

Paid sick leave legislation is currently in the spotlight, and human resources professionals should pay close attention.

Currently, according to NJ.com, several states require employers to offer paid sick time for employees. California, Connecticut and Massachusetts all have legislation in place regarding the subject. Now, New Jersey is on the nation's radar as a paid sick leave bill proposed in October 2014, and passed by the state Assembly in December 2014, may soon become state law.        

Paid sick leave today
It should be noted that almost 39 percent of workers in the U.S. do not have a single paid sick day available to them. The Chicago Tribune stated this means 43.5 million people could fall into financial trouble should they become ill or have to care for a sick family member. In addition, the wealthiest 10 percent of private sector workers are four times as likely to have paid sick leave than the bottom 10 percent of wage earners. The U.S. is also the only developed nation in the world that doesn't federally mandate, or in some cases provide, paid maternity leave to new mothers.

The New Jersey proposal
The bill, A2354, states that private- and public-sector businesses operating with 10 or more employees would be required to supply both part- and full-time workers with 72 hours of paid time off during illness or while caring for a sick family member. Workers would earn one hour of sick leave for every 30 hours worked. Any business with fewer than 10 employees would only have to give workers a minimum of 40 hours off for illness.

A federal point of view
Business and Legal Resources also reported President Barack Obama included the legislation topic in his State of the Union address earlier this year, asking Congress and states to pass similar bills. Obama announced the U.S. Department of Labor would use $1 million of its current funds to facilitate studies on the topic of paid sick leave and pushed for a minimum of seven paid sick days per year. In addition, he called for $2 billion in new funding to help states develop programs under the new law. Part of that $2 billion would go toward a Paid Leave Partnership Initiative meant to assist up to five separate states in establishing quality programs.

Recognizing advocates of paid sick leave
President Obama recently honored Analilia Mejia, the executive director of the New Jersey Working Families Alliance, for her advocacy of paid sick leave for the Garden State and its many municipalities. At the White House's "Champions of Change" ceremony this April, Mejia and others will be recognized by the president as leaders who focus heavily on generating support for working families across the nation.

What to do about it
While opponents may think offering paid sick leave will cost HR professionals time and resources and wreak havoc on a business's expenses, a study from the Journal of Occupational and Environmental Medicine found illness in the workplace costs U.S. companies roughly $160 billion every year. It seems to Labor Secretary Thomas E. Perez that legislation on paid sick leave will inevitably push through, and businesses should be prepared to ensure they comply with regulations. 

"I have absolutely no doubt that federal paid leave is a when question, not an if question," Perez told The New York Times.  

HR professionals would be wise to implement outsourced benefits administration sooner rather than later. A platform that provides HR reporting tools for compliance assistance can help companies, both large and small, private and public, avoid falling behind the trends or paying fines for failing to provide the correct amount of paid sick leave to employees.