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Transcript of Paid Sick Leave Task Force Report
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Mayors Task Force on Paid Sick Leave
Recommendations on Paid Sick
Leave Policies in PhiladelphiaFinal Report
Presented to Mayor Michael A. Nutter and City Council
December 2014
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Natalie Levkovich (co-chair), Executive Director, Health Federation of Philadelphia
Dan Calista (co-chair), Founder and CEO, Vynamic
Chioma Azi, Esquire, African Cultural Alliance of North America
Marianne Bellesorte, Vice President of Policy, Strategy & Communications, Pathways PA
Peter Cappelli, George W. Taylor Professor of Management and Director, Center for Human Resources at
the Wharton School of the University of Pennsylvania
Pete Ellis, Owner, El Fuego
Dewetta Logan, Director and Owner,Smart Beginnings Early Learning Center
Dr. Scott McNeal, Chief Medical Officer, North Philadelphia Health System and Delaware Valley
Community Health
Luis Mora, Founder and CEO,FINTANA
Teofilo Reyes, National Research Director, Restaurant Opportunities Center United
Elliot Rosario,Manager,Wash Cycle Laundry
Narasimha Shenoy, Executive Director, Asian American Chamber of Commerce of Greater Philadelphia
Ellen Somekawa,Executive Director,Asian Americans United
Joanne Zeas, Director of Human Resources,Temple University
Staff support provided by: Jackie Dunn, Noelle Marconi, James Startare, and Gregory Waldman
Mayors Task Force on Paid Sick Leave
Task Force Members
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ContentsLetter to the Mayor from the Co-Chairs ....................................................................................................... 5
Executive Summary ....................................................................................................................................... 6
Introduction .................................................................................................................................................. 8
Previous Efforts Paved the Way ............................................................................................................ 8
Our Work ............................................................................................................................................... 8
Time to Re-examine Paid Sick Leave ..................................................................................................... 9
Philadelphia Business Landscape ................................................................................................................ 10
Employer Overview ............................................................................................................................. 10
Gradual Recovery from the Great Recession ...................................................................................... 11
Gradual Employment Gains ................................................................................................................ 11
Unemployment Rate Remains Elevated ............................................................................................. 12
Persistent Poverty Challenges ............................................................................................................. 13
High Tax Burden .................................................................................................................................. 14
Efforts to Improve Business Climate ................................................................................................... 15
Paid Sick Leave Policies in Philadelphia & Beyond .............................................................................. 15
Considerations Regarding Paid Sick Leave .......................................................................................... 16
Importance of Paid Sick Leave .................................................................................................................... 17
Population in Need ............................................................................................................................. 17
Public Health Concerns ....................................................................................................................... 17
Productivity Concerns ......................................................................................................................... 18
Paid Sick Leave in Comparable Jurisdictions ............................................................................................... 19
Evaluation of Paid Sick Leave Impacts ................................................................................................ 19
Recommendations ...................................................................................................................................... 22
Employer Threshold ............................................................................................................................ 22
Exemptions.......................................................................................................................................... 22
Accrual Rate ........................................................................................................................................ 23
Maximum Accrual Amounts ................................................................................................................ 23
Wait Period for Accrual & Use ............................................................................................................ 23
Existing Employer Policies ................................................................................................................... 23
Family and Relationships Covered under the Bill ............................................................................... 24
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Domestic Violence .............................................................................................................................. 24
Collective Bargaining Agreements ...................................................................................................... 24
No Pay for Unused Hours .................................................................................................................... 24
Record Keeping Requirements ........................................................................................................... 24
Compliance ......................................................................................................................................... 25
Abuse of Leave .................................................................................................................................... 26
Monitoring and Review of Ordinance ................................................................................................. 26
Conclusions ................................................................................................................................................. 27
Acknowledgements ..................................................................................................................................... 28
Appendices .................................................................................................................................................. 30
Appendix A: County Business Pattern Data (2012) ............................................................................. 30
Appendix B: Bureau of Labor Statistics Employee Benefits Survey (March 2014) ............................. 31
Appendix C: Comparisons of Paid Sick Leave Legislation in other Jurisdictions ................................. 33
Appendix D: Additional Resources ...................................................................................................... 39
Endnotes ..................................................................................................................................................... 41
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Recommendations (continued):
Wait Period for Use and Accrual: Employees begin earning sick leave hours for any work
completed upon the commencement of their employment. Employees may use earned leave 90
days after the commencement of employment. Earned leave may be used in the smaller of hourly
increments or the smallest increment permitted by an employers payroll system. Restaurants mayrequire employees to take earned leave in 4-hour increments or the smallest payroll increment
permitted within their existing system.
Existing Employer Policies: Employers will not be required to change existing policies or provide
additional leave if the existing policy satisfies or exceeds the accrual requirements and can be used
under the same conditions.
Domestic Violence:Employees are able to use earned sick time as safe days to seek treatment,
legal services, or relocation.
Collective Bargaining Agreements: Paid sick leave subject to collective bargaining agreements is
excluded from the paid sick mandate.
No Pay for Unused Hours:No compensation is provided for any earned and unused time at
separation from employment.
Record Keeping Requirements: Employers are required to keep records documenting hours
worked, earned time accrued, and sick time taken by employees (whose tenure exceeds 90 days)
for a period of 2 years.
Compliance: Enforcement of the ordinance should be complaint driven. The City should determine
the appropriate office to evaluate claims and arbitrate any disputes. Employers must cooperate
with complaint investigations and be given a reasonable grace period (60 days) to correct the
violation before any fines are levied. Education and awareness campaigns will be key to
compliance efforts.
Abuse: Employers may require reasonable documentation for sick leave use. The employee must
provide notice as soon as practicable and must generally comply with the employers reasonable,
normal notification policies and/or call-in procedures, provided that such requirements do not
interfere with the purposes for which leave is needed.
Monitoring and Review of Ordinance:The City should complete a periodic review of the paid sick
leave ordinance to assess compliance, number of employers included, and impact on employers
every 2 years for the first 4 years following enactment. If the Commonwealth of Pennsylvania
passes statewide paid sick leave policy, Philadelphia should evaluate its local impact.
Mayors Task Force on Paid Sick Leave December 2014 Page 7
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IntroductionFormed by Executive Order in May 2014, the Mayors Task Force on Paid Sick Leave was asked to
address long standing concerns regarding access to paid sick leave in Philadelphia and the potential
impacts of a paid sick leave mandate on employees, employers and Philadelphias economic
competitiveness.
Previous Efforts Paved the Way
While City Council passed Paid Sick Leave legislation in both 2011 and 2013, Mayor Nutter vetoed the
legislation due to concerns regarding the slow progress of economic recovery following the Great
Recession and the potentially negative impact that such legislation could have on the health of localbusinesses and on job creation.
Over the past few years, the Citys local economy has continued to improve and shows signs of growth.
But this recovery has left some of the poorest citizens behind. While incremental progress in reducing
poverty rates has been seen, Philadelphia continues to have the unfortunate distinction of being the
poorest big city in America with more than one in four of our citizens living in poverty and, of those, half
are stuck in deep poverty, living with incomes less than 50% of the federal poverty level.
Therefore, a Task Force was formed to re-examine paid sick leave.
Our WorkThe Task Force began its work in June. Since its formation, Task Force members have met as a full group
or in subcommittees more than 20 times. Over the course of our work, we have heard from over 28
organizations and individuals regarding the potential impacts of a paid sick leave mandate.
In addition, the Task Force held two public hearings August 6, 2014 and November 19, 2014 to
receive public feedback. Community residents, business representatives, academics, and other
Purpose of the Task Force
With respect to employers, the review shall include the economic effect on businesses, as well
as the likely impacts on operating costs, hiring, and workforce management.
With respect to employees, the review shall include the effect on covered employees and their
families, and the benefits of having a paid sick leave policy in Philadelphia.
The review shall also consider City-wide effects on the business climateand public health.
The review shall evaluate and analyze (i) the current array of paid sick leave policies in
Philadelphia and their application, including the types of leave provided across various
characteristics, such as by industry, business size, and employee wages; and (ii) the impact of
the implementation of paid sick leave in jurisdictions comparable to Philadelphia.
The review shall further consider what, if any,possible approaches to mandating paid sick
leavewould afford a meaningful benefitto employees while preserving or enhancing the
business climate to create more jobs in Philadelphia.
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interested individuals attended the initial hearing and provided testimony regarding their thoughts on
the current status of paid sick leave in Philadelphia and the potential impacts of mandating paid sick
leave in the city.
We began our work by reviewing the prior 2011 and 2013 paid sick leave bills passed by City Council as
well as available research on paid sick leave legislation implemented in other cities and states. Wecreated three working groups: 1) to determine the impact of paid sick leave on employees and the
public health, 2) to determine the impact of a paid leave mandate on the business climate and area
employers, and 3) to evaluate the experiences in other jurisdictions with paid sick leave. As a part of this
effort, groups reviewed public health literature, academic studies and surveys, public testimony, and
human resource publications. Evaluating local economic and employment data helped to build a richer
understanding of how Philadelphia compares within the region and among peer cities.
One of the strengths of this Task Force is our diverse membership, including business and community
leaders, human resource and public health professionals, academics, and research professionals. While
these recommendations represent the strong consensus of the Task Force, not all of the
recommendations were unanimously agreed upon. Members diverse backgrounds helped inform the
debate on complex issues relating to paid sick leave impacts on employees and employers.
While there is no single, perfect set of recommendations, the Task Force has formally adopted this
report as expressing our collective opinion on how best to move the issue of paid sick leave forward.
Time to Re-examine Paid Sick Leave
Since paid sick leave legislation was originally introduced, evidence points to signs of gradual economic
recovery.
However, our overall recovery has left some segments of our populations woefully behind. Individualsand families living in poverty are less able to maintain health and achieve economic stability, and are
most likely to rely on public services, an economic cost borne by all tax payers, individuals and
businesses alike.
Enacting legislation to guarantee paid sick leave for Philadelphia workers would be in line with current
City initiatives to address the challenge of persistent poverty. Such initiatives include Shared Prosperity
Philadelphia, which was launched in 2013 to expand access to public benefits; increase access to food;
create or encourage programs of literacy education for adults and increased access to quality early
childhood education; reduce consumer debt through free financial counseling; expand job creation and
job training opportunities; and increase housing security and affordability. In 2012, Mayor Nutter signed
an Executive Order requiring City contractors to provide a minimum living wage for employees. These
strategies, designed to help low income citizens, received further support when Philadelphia became
one of three cities to receive the federal Promise Zone designation, a place based strategy to revitalize
distressed communities by partnering with local businesses and organizations to create jobs, expand
educational opportunities, and improve public safety. Paid sick leave for the working poor will enhance
these efforts by providing a measure of job security and income stability.
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These conditions, considering the interests of employers, employees, and the public health and well-
being, makes this the right time to re-examine the question of a local paid sick leave policy.
Philadelphia Business Landscape
Employer OverviewPhiladelphia has 26,662 employers and 594,636 paid employees according to the most recent County
Business Patterns data from the Census Bureau data. More than half of Philadelphia employers (52.8%
or 14,083) have between 1 to 4 employees1(Appendix A).
Employer Breakdown by Establishment Size (2012)
Among employers with the greatest number of employees, the top ten establishments include
government, institutions of higher education, and hospital systems:2
Rank Employer Rank Employer
1 Federal Government 6 Temple University
2 City of Philadelphia 7 Thomas Jefferson University Hospital
3 University of Pennsylvania 8 US Airways Inc.
4 School District of Philadelphia 9 SEPTA
5The Children's Hospital of
Philadelphia10 Temple University Hospital
1-4 EEs
14,083
5-9 Employees
4,926
10-19 EEs3,413
20-49 EEs
2,503
50-99EEs
901
100-249 EEs
563
250-499 EEs
161500-999 EEs
62
1,000+ EEs
50
Establishment SizeEstablishment
Count
% of
Total
1 to 4 employees 14,083 52.8%
5 to 9 employees 4,926 18.5%
10 to 19 employees 3,413 12.8%20 to 49 employees 2,503 9.4%
50 to 99 employees 901 3.4%
100 to 249 employees 563 2.1%
250 to 499 employees 161 0.6%
500 to 999 employees 62 0.2%
1,000+ employees 50 0.2%
All Philadelphia Employers 26,662 100.0%
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Gradual Recovery from the Great Recession
Philadelphia endured the recent recessions fiscal impacts and has started on a course of economic
recovery. The city population grew modestly for the 7 th consecutive year and total employment
surpassed pre-recession levels in 2013.3 The number of building permits issued for new residential
construction, which had slumped during the recession, has reached the highest levels since 2004. 4But
despite these signs of progress, several persistent economic challenges remain with implications for city
employers, workers, and residents.
Gradual Employment Gains
In 2013, the city surpassed its 2008 employment levels, the last year before the impacts of the Great
Recession hit with full force.5However, this total remains below employment totals earlier in the
decade. In prior decades, the city was unable to add back more jobs in periods of economic growth than
it lost in corresponding downturns.6This trend seems to have moderated in the current decade but
remains a concern for policy makers.
695.9
688.2
683.5
671.4
657.9660.3
662.5 662.7 663.3
652.6
657.1660.0
662.3
666.1
630
640
650
660
670
680
690
700
Emp
loyment(Thousands)
Philadelphia Employment
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Unemployment Rate Remains Elevated
Philadelphia has a higher unemployment rate than other surrounding counties. In September 2014,
Philadelphias unemployment rate was 7.1% compared to 4.9% for the state and 5.9% for the nation.
While the citys unemployment rate is down from its peak of 11.6% in July 2012, this rate is still higher
than those in corresponding suburban counties.7
Unemployment Rate (%) 2005 2006 2007 2008 2009 2010 2011 2012 2013 Sep-14
Chester County 3.6% 3.3% 3.1% 4.0% 6.2% 6.5% 6.2% 6.2% 5.8% 3.9%
Montgomery County 3.9% 3.5% 3.4% 4.4% 6.7% 7.1% 6.8% 6.8% 6.3% 4.3%
Bucks County 4.1% 3.8% 3.8% 4.8% 7.2% 7.6% 7.4% 7.4% 6.9% 4.5%
Pennsylvania 5.0% 4.5% 4.4% 5.3% 7.9% 8.5% 8.0% 7.9% 7.4% 4.9%
Delaware County 4.6% 4.2% 4.0% 5.0% 7.5% 8.3% 8.1% 8.1% 7.5% 6.1%
United States 5.5% 5.1% 4.6% 5.8% 9.3% 9.6% 8.9% 8.1% 7.4% 5.9%
Philadelphia County 6.7% 6.2% 6.0% 7.1% 9.6% 10.8% 10.9% 10.8% 10.0% 7.1%
0%
2%
4%
6%
8%
10%
12%
Unemployment Rate (%)
Chester County Montgomery County Bucks County
Pennsylvania Delaware County Philadelphia County
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Persistent Poverty Challenges
Philadelphia has one of the highest poverty rates
among large cities in the country. At 26.3%, the
city has the third highest poverty rate among the
countrys twenty most populous cities. The 2013
poverty line was set by the U.S. Department of
Health and Human Services at $23,550 for a
family of four.
While the percentage of individuals living in
poverty dropped from 28.4% in 2011 to 26.3% in
2013, Philadelphias poverty rate is still more
than double the rates of many surrounding
areas.
13.8%
15.8%
17.0%
17.3%
17.8%
18.9%
19.6%
20.1%
20.9%
20.9%
21.6%
21.6%
22.4%
22.7%
23.0%
23.0%
23.3%
23.6%
24.4%
26.3%
27.7%
40.7%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
San Francisco
San Diego
Charlotte
Jacksonville
Austin
Washington DC
San Antonio
Fort Worth
New York City
El Paso
Boston
Indianapolis
Houston
Columbus
Chicago
Los Angeles
Baltimore
Phoenix
Dallas
Philadelphia
Memphis
Detroit
National Poverty Rate Comparisons (%)
Top 20 US Cities
6.1%
6.8%
7.0%
10.8%
13.7%
15.8%
26.3%
0% 5% 10% 15% 20% 25% 30%
Bucks County
Montgomery County
Chester County
Delaware County
PA
United States
Philadelphia
Regional Poverty Rate Comparisons (%)
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High Tax Burden
The citys tax and regulatory environment also remains a concern for area employers. Philadelphia has
made progress in recent years by reducing taxes, streamlining licensing processes, and implementing
programs that support small businesses and start-up entrepreneurs. Nevertheless, many businesses still
consider the citys tax and regulatory climate to impede business creation and expansion. Employers,
particularly small businesses, also experience general difficulty navigating various business specific
rules.8
Tax burdens on businesses are difficult to compare as taxes impact establishments of various sizes and
industries differently and each jurisdiction offers different exemptions and credits. However,
Philadelphia is one of the few cities that taxes both gross receipts and net income of businesses. These
taxes, in addition to the wage tax on employee earnings, have given the city a reputation as a historically
high tax environment for businesses.9Previous Philadelphia task forces on tax policy noted that the city
has more and higher business and individual taxes compared to other large cities.10Philadelphia is
also one of a few cities with personal income, sales, and business taxes levied at the state and local
level.
Types of Taxes Imposed by Selected State and Local Governments
Local Taxes State Taxes
Personal
IncomeSales Business
Personal
IncomeSales Business
Philadelphia Y YNet Income &
Gross ReceiptsY Y Net Income
Boston Y Y Net Income
Baltimore Y Y Y Net Income
Cleveland Y Y Net Income Y Y Gross ReceiptsNew York Y Y Net Income Y Y Net Income
Phoenix Y Y Y Net Income
San Francisco Y Y Gross Receipts11
Y Y Net Income
Washington D.C. Y Y Net Income12
-- -- --
For households, Philadelphia ranks in the top ten in overall tax burden at all income levels among the
largest city in each of the 50 states and Washington, DC according to an annual study prepared by the
Chief Financial Officer in the District of Columbia. 13 A family of three in Philadelphia earning $25,000
pays 15.2% of income toward taxes ranking second nationally among large cities compared to thenational average of 12.7%. A family of three earning $150,000 in Philadelphia would pay 16.9% of
personal income toward taxes as opposed to an average of 10.9% of personal income in other large
cities.
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With businesses in Philadelphia carrying a heavier tax
burden in comparison to businesses in neighboring
counties and to the national average, imposing a paid sick
leave mandate on businesses needs to be carefully
considered and structured in order to avoid unintended
consequences. In recognizing the dilemma for employees
who lack paid sick leave, we caution City leaders to
balance the benefit to employees against the effects of
mandating paid sick leave on the ability of local businesses
to create and retain jobs and to attract and retain
businesses.
Efforts to Improve Business Climate
The City has taken steps over the past several years to restructure its tax policy and position itself for
business and residential growth. In an effort to foster an improved business climate, the City has:
Reduced net profits tax and wage tax in FY2013 and FY2014 with additional reductions
scheduled through FY2019 to lower the cost of living and working in Philadelphia
Established the Office of Business Services, Startup PHL, and the Goldman Sachs 10,000 Small
Business program all designed to increase support and resources for small businesses and
startups
Streamlined process for business permitting
Encouraged business growth by exempting small businesses from Business Income and Receipts
Tax for their first two years of operations if they meet predetermined job creation targets
Paid Sick Leave Policies in Philadelphia & Beyond
Philadelphia employers are not required by law to provide paid sick leave benefits for their employees,
but many establishments offer paid sick or paid time off as a part of their benefit package. Access to
paid sick leave varies by employer size and industry. Paid sick leave data for private employers in
Philadelphia is not available at the local level. However, national level data provides insight into broader
trends (Appendix B):14
65% of civilian employees public and private sectors - have access to paid sick leave in 2014.15
Private industry workers are less likely to have access to paid sick leave compared to state and
local government employees (61% to 89%, respectively).
In the private sector, management employees are most likely to receive paid sick leave (88%)
while those in service industry are least likely (40%).
Across both private and government sectors, few part-time employees receive paid sick days
(24% private, 41% government).
30% of low wage workers (the lowest 25% wage percentile) receive paid sick leave.
Small private employers are also less likely to provide paid sick leave: 52% of all employers with
between 1-99 employees provide paid sick while 65% of moderate (100-499 employees) and
81% of large private employers (500+ employees) provide access to paid sick leave.
15.2%16.9%
12.7%10.9%
0%
5%
10%
15%
20%
Family of Three ($25,000) Family of Three
($150,000)
Percent of Personal Income Spent on
Taxes (2012)
Philadelphia Large City Average
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Nationally, the percentage of all private sector workers with access to paid sick leave has increased over
the last twenty years. In 2012, 61% of all private sector workers had access to paid sick leave, up from
50% in 1992. Despite trends toward increasing access, part-time workers and those at establishments
with fewer than 99 employees were still less likely to have access to a paid sick leave benefit compared
to full-time employees or those working at larger establishments. 16
Access to Paid Sick Leave
All WorkersFull-Time
Workers
Part-Time
Workers
1-99
Employees
100+
Employees
1992-1993 50% 58% 16% 44% 59%
2012 61% 75% 23% 52% 73%
Considerations Regarding Paid Sick Leave
The largest employers in Philadelphia Federal government, City of Philadelphia, School District of
Philadelphia, and SEPTA - provide paid sick leave policies for employees but the benefit varies across
employee groups. The City also requires employers who enter into contracts with the city or receive city
subsidies to provide full-time workers with a minimum amount of paid sick leave.
17
Small Business:Approximately 53% of all Philadelphia employers have between 1-4 employees. Small
business sick leave offerings varied from employer to employer. While some offer formal leave, others
have informal policies permitting time off or do not offer any paid time off for sick leave. The cost of
providing a new benefit, expanding, or formalizing existing policies is a major concern.
If mandated to provide paid sick leave, businesses may either delay work, hire replacement workers to
fill in for those taking sick time, or operate with a short staff. In providing paid sick leave, businesses
must pay an employee not to come in while sick and either suffer a temporary loss in productivity or pay
a replacement worker to do the permanent employees job.
Aside from benefit offerings, many small employers lack the administrative systems to comply with
potential record keeping requirements which will pose an additional cost. Providing notice for non-
English speaking staff in appropriate languages is an additional compliance challenge.
Regulated industries: Employers required by federal, state or local legislation to maintain a certain
staffing ratio may be concerned about the additional costs and potential increased use of sick leave. For
instance, the Pennsylvania Department of Public Welfare requires child care centers to maintain a
certain child to teacher ratio.18 This scenario is not unique to Philadelphia as similar standards are in
place across the country but it is an important consideration for policy makers.
Education and health sectors: The City is home to large educational institutions and hospitals. While
full- and some part-time employees receive paid sick leave, interns, per diem employees and certain
adjunct employees (those employed on a per-class basis) do not. These cohorts would pose an
administrative challenge under a potential paid sick leave bill.
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National and regional employers:Employers with multiple locations in and outside of the City have
to track employee hours, especially for those individuals who move between stores, where
legislation across municipal and state lines differs.
Importance of Paid Sick Leave
Population in Need
An estimated that 35% to 40% of workers in Philadelphia, or approximately 200,000 individuals, lack
access to paid sick leave, a figure that is consistent with national estimates.19It must be noted, however,
that paid sick leave is not evenly distributed across the population. The majority of professionals and
more highly compensated workers have access to paid time off or the flexibility to work from home,
make up time or otherwise accommodate the life/work balance, a privilege not usually available to low
income, hourly or lower skilled workers (Appendix B). Low income workers, especially women and
minorities, carry the heaviest burden and are least likely to have paid time off to care for their own or
their dependents health. It is important to note that among families with children that are headed by
woman and among African Americans and Latinos, the current poverty rate is much higher than for our
population as a whole.20
For a worker without paid sick leave, the choice is often between going to work ill and forgoing care or
taking unpaid time and facing increased economic hardship. For a family without paid time off, on
average, 3.1 days of pay lost due to illness is equivalent to an entire months health care budget and 3.5
days is equivalent to its entire monthly grocery budget.21Workers without paid sick leave are five times
more likely to report using the emergency room,22adding to avoidable healthcare costs. Women
without paid sick leave are significantly less likely to obtain preventive breast exams.23Delayed or
avoided preventive, early detection, primary and chronic care often results in lost productivity,
increased morbidity, higher healthcare costs and higher rates of mortality.
Public Health Concerns
Employees who come to work sick present both a public health and economic risk to their employers
and to the public. Workers with direct and intimate public contact, such as personal care, food service,
hospitality, healthcare support, retail workers and others are least likely to have paid sick leave benefits.
Sanitary conditions are regulated and standards of hygiene for restaurants, sterilization of instruments
in barber shops and nursing homes, safety of play equipment in day care centers are mandated and
enforced. Philadelphia food safety regulations require food employees to report illnesses to their
managers and for food service managers to exclude sick employees from the establishment. However,
employees may make economic decisions rather than seek treatment. When these workers come towork sick because they lack paid sick time, they are not only neglecting their own health, they are
increasing the likelihood of spreading illness to their coworkers and members of the public.
Centers for Disease Control and Prevention(CDC) guidelines recommend that children be kept at
home for at least 24 hours after a fever and that people experiencing the flu avoid public
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contact (called social distancing) for 5 days since these are the periods of greatest risk for
contagion and spread of infectious illness to co-workers and the public.
The Food and Drug Administration requires food service workers with norovirus-related illnesses
to work on a restricted basis until 24 hours after symptoms subside.24Since the great majority of
food service employers dont offer paid sick time, workers are forced either to work, potentially
infecting customers, or take unpaid leave, risking the financial needs of their families. One
example of the consequences of working while contagious occurred in Kent, OH where a worker
at a chain restaurant came to work sick with a norovirus (vomiting and diarrhea) and 500 people
became ill costing the Kent community between $130,233 and $305,337. 25Similar examples can
be cited for nursing homes and other high contact workplaces.
The H1N1 (swine flu) pandemic further underscored the need for paid sick leave. Between
September and November 2009, 8 million workers went to work sick and may have infected 7
million of their co-workers, or 15% of the 44 million infected.26
Productivity Concerns
In addition to the risk for spreading illness, workers who come to work sick are less productive and morelikely to experience workplace injury. According to the CDC, workers with paid sick leave are 28% less
likely to sustain non-life threatening workplace injuries.27Presenteeism or coming to work while sick is
estimated to cost employers twice as much as absenteeism due to illness. 28
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Paid Sick Leave in Comparable JurisdictionsAs of November 2014, 16 cities and 3 states have passed paid sick leave laws. A detailed comparison of
paid sick leave bills is available in Appendix C.
Key elements across paid sick leave ordinances include:
Employer Size:The majority of bills divide employers into two
tiers based on number of employees. Seattle was the only city
examined that created a three tier system. There was a
significant difference in definition of small and large employers
across the laws examined. Small employer criteria range from
1-5 employees (Portland, New York City) to a maximum of 49
employees (Connecticut). Large employer criteria ranged from
6 or more (Portland) to 250 or more (Seattle). The State of
California and cities of San Diego, Eugene, and San Francisco do
not establish tiers and require all employers to provide paid sickleave.
Waiting Period for Eligibility and Use: The majority of paid sick
laws permit employees to begin accruing hours at the
commencement of employment. However, many laws require
employees to work for a set number of days before they can use
accrued sick leave hours. The most common waiting period was
90 days, however some laws required as many as 180 days
before employees could use accrued leave.
Accrual rate: The rate at which employees accrue hours also
varied by business size. The majority of laws provided 1 hour ofleave for every 30 to 40 hours worked.
Maximum accrual: 40 hours was the most common accrual amount for both large and small
business. The range for large business went from 40 to 72 hours maximum accrual each year,
and the small business range was from 24 to 40 hours.29
Carry-over provisions: All laws permitted employees to carry over unused sick leave hours from
one year to the next, permitted they were not at the maximum allotment. 40 hours was the
most common carry-over amount, but values ranged from 24 hours (3 days) to 72 hours.
Maryland and New Jersey both have paid sick leave advocate campaigns under way that would require
paid sick leave at the State level. Conversely, 10 states have passed laws prohibiting local governmentsfrom enacting paid sick leave requirements: Arizona, Florida, Georgia, Indiana, Kansas, Louisiana,
Mississippi, North Carolina, Tennessee, and Wisconsin.
Evaluation of Paid Sick Leave Impacts
Due to the complexity of the issue and relatively recent adoption of state and local ordinances, there are
very few comprehensive academic studies on the effects of paid sick leave on employees, employers,
and the local economy. The majority of available research is based on surveys of employers or
Paid Sick Leave Timeline
San Francisco (CA) Nov-06
Washington, DC Mar-08
Connecticut Jul-11
Seattle (WA) Sep-11
Portland (OR) Mar-13
Jersey City (NJ) Oct-13
Newark (NJ) Jan-14
New York City (NY) Mar-14
San Diego (CA) Jul-14Eugene (OR) Jul-14
California Aug-14
East Orange (NJ) Sep-14
Irvington (NJ) Sep-14
Passaic (NJ) Sep-14
Paterson (NJ) Sep-14
Massachusetts Nov-14
Montclair (NJ) Nov-14
Trenton (NJ) Nov-14
Oakland (CA) Nov-14
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employees. While surveys are valuable tools, the validity and reliability of survey results are contingent
upon survey design, sampling methodology, and response bias. The Task Force sought to focus on
common findings across all studies and look to academic sources such as the Bureau of Labor Statistics
for reliable indicators of economic impact as a result of paid sick leave. Key findings from available
research include:
Workers do not report using all sick days available.The National Health Interview survey indicates that
workers used between 2.2 days to 3.1 days per year (varied based on firm size).30Employer surveys in
San Francisco and Connecticut found that employees did not use all the sick days afforded to them
under the new paid sick leave ordinances. The San Francisco paid leave ordinance provided workers with
5 to 9 days based on employer size, but the median leave reported was 3 days (including those
employees using no days). Of workers using leave, the median usage was 4 days out of the 5 to 9 days
offered.31In Connecticut, employers reported usage at 4 days on average of the 7.7 days afforded to
employees.32
Paid sick leave increased access to leave for employees who report the greatest need. As BLS data
indicates, low wage workers are less likely to have access to paid sick leave than other employee cohorts
and immediately benefited from coverage under recent state and local paid sick ordinances. Workers
with chronic health conditions reported an increased ability to manage health issues in San Francisco.33
Public health benefits from access to paid sick leave. Many studies document the impact of paid sick
leave on access to and use of preventative care, reduced recovery times34, and effectiveness in reducing
the spread of infectious disease.35However, surveys of employers and employees found mixed results
on how likely employees were to stay home when sick after recently acquiring paid leave. In Seattle,
workers with high levels of public contact were less likely to report staying home when sick compared to
their peers.36In two studies, San Francisco employers reported little change in perceived rates of
presenteeism after paid sick leave passed.37 This finding suggests public awareness and employer
engagement are key to recognizing the full benefits of a paid sick leave policy.
The majority of employers were already compliant with paid sick leave mandates. Surveys found that
many employers in San Francisco, Seattle, and Connecticut already offered paid leave benefits that
complied with paid sick leave mandates.National data paid sick leave reinforces this finding, 61% of all
private sector employees have access to paid sick leave. Employers most impacted were those in the
retail, hospitality, and service industries or those with a large percentage of part-time employees. 38
Compliance issues arose from lack of awareness by employers and employees. In Seattle, a survey of
employers found that 40% of eligible employers were not aware of the law immediately after passage.
Awareness rates were lowest in larger employers with regional or national offices. In San Francisco, 27%
of employees covered by law self-reported not having access which indicated that they were not aware
of the laws provisions.
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Minimal compliance issues were documented relative to the number of employees impacted. In San
Francisco, employee self-reports indicated very low rates of wage docking, leave denial, or having to find
replacement.39The Seattle Office of Civil Rights averaged 15 employee inquiries or complaints per
month. The Office provided technical assistance to between 65-80 employers per month to help
implement the new policy or advice on the new sick leave law. 40In DC, 91% of employers examined in
an audit complied with posting requirements, but the audit did not examine if leave was granted. 41
The cost of providing and administering paid sick leave benefit has been a concern for employers. To
the extent that paid sick benefits are valuable to employees, it is difficult to assess the costs of leave
policies. The Bureau of Labor Statistics measures the cost to employers for providing wages, salaries,
and selected employee benefits. As of June 2014, the average cost for sick leave per employee hour
worked in the private sector was $0.26 or 0.8% of their total compensation.42The total cost varies from
a low of $0.07 per hour for service occupations to a high or $0.60 per hour worked for management and
professional employees. As a percentage, the estimates ranged from 0.5% to 1.1% of total
compensation. While these are national estimates, they provide a helpful metric for understanding
potential costs.Paid Sick Leave Costs to Employers for Private Industry Workers, June 2014
Cost Per Hour
Worked Per
Employee
Percent of Total
Compensation (%)
All Workers $0.26 0.8%
Management, Professional, Related $0.60 1.1%
Sales and Office $0.18 0.8%
Service $0.07 0.5%
Construction & Maintenance $0.17 0.5%
Production, Transportation & Material Moving $0.17 0.6%
Employer costs per hour worked for sick leave increased from $0.14 per hour to $0.25 per hour from
1992 and 2012. However, sick leave costs as a percentage of total compensation remained unchanged
across establishment categories at approximately 0.9%. 43Total compensation costs include wages,
salaries, benefits, and retirement offerings including defined benefit and defined contribution packages.
Paid Sick Leave Costs to Employers for Private Industry Workers, 1992 and 2012
EstablishmentCost Per Hour Worked
Per Employee
Percent of Total
Compensation (%)
All workers
1992 $0.14 0.9%
2012 $0.25 0.9%Establishments with fewer than 100 workers
1992 $0.10 0.7%
2012 $0.16 0.7%
Establishments with 100 or more workers
1992 $0.17 1.0%
2012 $0.35 1.0%
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Recommendations
To provide the Mayor and City Council with specific recommendations to shape the policy discussion,
the Task Force focused our discussion around several guiding principles:
Provide a meaningful benefit for employees in Philadelphia
Understand the needs of employers in Philadelphia
Provide streamlined recommendations that both employees and employers can understand
The following recommendations define a minimum benefit for all qualifying employees. Employers may
provide additional benefits beyond what is recommended at their discretion.
Employer Threshold
Recommendations:Employers with 15 or more employees are required to provide paid sick leave for
employees. This threshold is consistent with requirements under federal regulations for the Equal
Employment Opportunity Commission (EEOC) created by Title VII of the Civil Rights Act of 1964. We
estimate that this threshold would benefit approximately 120,000 of the 200,000 workers currentlylacking sick leave benefits.
Employers with fewer than 15 employees should provide earned, unpaid sick time of up to the same 40
hour maximum accrual and for the same purposes. This option would prevent employers from
terminating an employee for taking accrued unpaid sick leave.
Rational: The Task Force recommends eliminating multiple employer tiers to streamline regulations.
After significant deliberation, the Task Force created a compromise rather than a consensus. The
compromise reflects a balance between covering a significant number of employees and aligning with
other business thresholds defined by the federal government.
Exemptions
Recommendations: The Task Force recommends exempting the following employees from paid sick
requirements:
Federal and state employees
Employees covered under a collective bargaining agreement
Temporary workers (
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Accrual Rate
Recommendation: Employees earn1 hour per 40 hours worked.
Rationale: The Task Forcerecommends employees earn one hour of paid sick leave for every 40 hours
worked to align with common work schedules.
Maximum Accrual Amounts
Recommendation: Employees may accrue up to 40 hours per rolling 12 month period of employment.
Accrued time may be taken in the smaller of hourly increments or the smallest increment that an
employers payroll system permits to account for absences or other uses of time. Restaurants may
require employees to take leave in 4-hour increments or the smallest increment permitted by the
employers payroll system.
Rationale: Employees may carry over hours from the prior year up to the 40 hour cap. Employers are
not required to provide paid leave beyond the 40 hours cap. To streamline requirements, the Task Force
recommends the 40 hour cap apply regardless of business size.
The Task Force believes this provision will provide a reasonable amount of time for covered employees
without creating a significant potential cost for employers. Studies on paid leave use indicate that
employees, on average, do not use all of the paid sick leave provided. Taking time in defined increments
enables employers to manage the time taken more effectively with work schedules. Due to the unique
staffing challenges, it is recommended that restaurant employees take accrued time in the smaller of
four-hour increments or the smallest increment that the employers payroll system permits for absences
or other uses of time. Employers may choose to provide additional leave independent of the mandate,
but the 40 hour cap enables employers to quantify the potential liability.
Wait Period for Accrual & Use
Recommendation: Employees begin earning sick leave hours for any work completed upon the
commencement of their employment. Employees many use earned leave 90 days after the
commencement of their employment.
Rationale: Consistent with paid sick leave ordinances across the country, the Task Force recommends
that covered employees earn time at the start of employment and must work for 90 days prior to using
any earned sick leave benefits.
Existing Employer Policies
Recommendation: Employers will not be required to change existing policies or provide additional paid
leave if the employers existing policy satisfies or exceeds the bills accrual requirements and can be
used under the same conditions.
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Rationale: The Task Force reinforces the condition that no change of practice is required of employers
who currently provide paid sick leave or any form of paid time off that can be used for similar purpose
that meets or exceed the accrual requirements laid out by the Task Force.
Family and Relationships Covered under the Bill
Recommendation: Employees are able to use earned leave to care for injury, medical care, and healthconditions for the following individuals:
Self, child, spouse/domestic partner
Foster, step, in-law relationships
Parent, grandparent, grandchild
Siblings
Rationale: The Task Force recognizes that the definition of care giver and family are ever evolving.
However, to streamline the requirements for all parties, the Task Force proposes common care giving
relationships.
Domestic Violence
Recommendation: Employees are able to use earned leave to care for themselves and seek treatment,
relocation, or legal services to address domestic violence, sexual assault, and stalking incidents.
Rationale: The Task Force recognizes the need to provide safe days for employees impacted by
domestic violence, sexual assault, and stalking.
Collective Bargaining Agreements
Recommendation: Paid sick leave subject to collective bargaining agreements is excluded from the paid
sick mandate.
No Pay for Unused HoursRecommendation: No compensation is provided for any paid sick days earned and unused at the time of
separation from employment.
Record Keeping Requirements
Recommendation: Employers are required to keep records documenting hours worked, earned time
accrued, and sick time taken by employees (whose tenure exceeds 90 days) for a period of 2 years.
Employers would not be required to keep records on employees who do not work for a period of 90
days. Employers shall permit the designated City agency access to such records to monitor compliance if
an employee complaint is filed.
Rationale: To reduce the administrative burden on businesses, the Task Force recommends limiting the
record keeping requirement to a period of 2 years. The Task Force recommends that employers keep
records documenting basic data relating to the use and accrual of paid sick leave. Such records will
protect employers and employees in disputes over compliance with the mandate and encourage timely
filing of complaints.
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Compliance
Recommendation:To minimize administrative burdens for employers and the City, enforcement of this
ordinance should be complaint driven with the following provisions to ensure understanding of the
requirements by both employers and employees:
City Council previously identified the Office of Labor Standards (OLS) within the CommerceDepartment as the compliance and enforcement body for the paid sick leave bill. OLS is a 6
person office that enforces the prevailing wage ordinance for contractors doing business with
the City by reviewing payroll records and monitoring contract terms. Determining eligibility and
potentially arbitrating disputes for a larger universe of employers would prove difficult for this
office as currently organized. The Task Force recommends that policy makers determine the
appropriate office, and that this office (Office) be provided with legal and business expertise
to enforce recommendations and evaluate complaints.
The Office should establish clear policies for employees and employers to follow once a
complaint has been filed, describing the type of documentation (payroll, employer size, etc.)
that must be provided in order to respond to or arbitrate a complaint. The Office should develop and distribute guidelines and regulations for implementation of the
ordinance.
Notice of the rights and regulations required by the ordinance should be posted at the worksite
in English and any primary language spoken by 5% of workers and included in human resource
policies and procedures that are distributed to employees
Employees or other interested parties have the right to report any violations of the policy to
Office without incurring risk of termination of employment or other retaliatory actions on the
part of the employer.
Employer must cooperate with the Office in any investigation of a complaint by making records
available.
Penalties for substantiated violations by the employer should result in substantial fines;
however, the employer should be granted a reasonable grace period (60 days) to correct the
violation before the fine is levied. Penalties should include restitution of wages lost as a result of
the violation. Policy makers should also incorporate an administrative exhaustion requirement,
which would require the complaint to first be settled administratively and outside of court, in
order to reduce the potential amount of litigation.
The City should take steps to widely publicize passage of the ordinance and the rights and
responsibilities that it guarantees to ensure broad awareness and understanding of sick leave
policy by the general public.
The City should also undertake or support a public education campaign to inform the public
about the negative impact on personal and public health of going to work or school while sick.
Rationale:Experiences in other jurisdictions with new paid sick leave laws indicate that awareness was
the most common reason for non-compliance. The above efforts will help raise awareness and provide
non-compliant employers with an opportunity to rectify issues prior to incurring penalties.
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Abuse of Leave
Recommendation: Employers may require reasonable documentation for sick leave use. The employee
must provide notice as soon as practicable and must generally comply with the employers reasonable
normal notification policies and/or call-in procedures, provided that such requirements do not interfere
with the purposes for which the leave is needed, such as emergency treatment.
Monitoring and Review of Ordinance
Recommendation: The Task Force recommends the City complete a periodic review of the paid sick
leave ordinance to assess compliance, number of employers included, and impact on employers. The
City could designate an internal Task Force or contract with an outside entity to evaluate the ordinance
every 2 years for the first 4 years following enactment.
If the Commonwealth of Pennsylvania passes statewide paid sick leave policy, Philadelphia should
evaluate its local impact.
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Acknowledgements
We begin by thanking Mayor Nutter for the opportunity to address the issue of paid sick leave in
Philadelphia. We hope this report and our recommendations meet the needs of the Mayor and City
Council.
We appreciate the time and expertise from Councilman William Greenlee and his staff. The report and
its recommendations are stronger as a result of your dedication, input, and previous research on paid
sick leave.
We want to acknowledge and thank the many individuals and organizations that took the time to
present testimony at the two public hearings of the Task Force, which were held in August and
November, 2014, and those who shared their thoughts and insights with the Task Force in meetings or
via email: Dr. Eileen Appelbaum, Center for Economic Policy and Research; Ellen Bravo, PA Families @
Work; Dr. Esther Chernak, Center for Public Health Readiness and Communication; Brent Cossrow,
Fisher & Phillips LLP; Andre Butler, Unemployment Project; Daisy Cruz, 32BJ SEIU; Delaware Valley
Health Corporation of HAP; John Doulgeris, Pennsylvania Restaurant & Lodging Association; Don Fox,
Firehouse Subs; John Grady, Philadelphia Industrial Development Corporation; Ed Grose, Greater
Philadelphia Hotel Association; Jonathan Heller, Human Impact Partners; Gary Jastrzab, Philadelphia City
Planning Commission; Martha Johnston, Philadelphia Law Department; Cara Leheny, Philadelphia Law
Department; Sherry Leiwant, A Better Balance; Shymara Jones, fast food employee; John Longstreet,
Pennsylvania Restaurant & Lodging Association; Dave Magrogan, Dave Magrogan Group; James
Meadows, Action United; Jason McCartney, restaurant employee; Onetha McKnight, 32BJ SEIU; Sara
Merriman, Philadelphia Department of Commerce; Dr. Jessica Milli, Institute for Womens Policy
Research; John Mondlak, City of Philadelphia Commerce Department; Angela Owens, United Home Care
Worker; Dr. James Plumb, Jefferson Hospital; Catherine T. Pulos, Wawa; Jeff Rousset, Media
Mobilization Project; Marvin Robinson, Action United; Carol Rogers, Healthy PA; Hannah Sassaman,
Media Mobilizing Project; Gosia Siestrzewitowska, restaurant employee and student; Kati Sipp,
Pennsylvania Working Families; Zsanell Smith, Action United; Al Taubenberger, Greater Northeast
Philadelphia, Chamber of Commerce; Geovanni Theodore, food service employee; Carol Tracy, Womens
Law Project; Dr. Walter Tsou, past president of the American Public Health Association and former
health commissioner of Philadelphia; Dawn Walton, Action United; Garth Weldon, The Prime Rib; Robert
Zuritsky, Philadelphia Parking Association.
The Task Force also thanks Lisa Crutchfield from the Greater Philadelphia Chamber of Commerce for her
involvement in early Task Force proceedings.
We are also grateful to Larry Liu, a Research Assistant at the Wharton School, for the research and
analytical expertise he provided to Task Force staff members.
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Finally, the Task Force members, their organizations, and staff were essential to the success of the
group. Although the Task Force had a limited amount of time to develop this report, everyone
demonstrated a commitment to maximizing the time it had. We thank them greatly.
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Appendices
Appendix A: County Business Pattern Data (2012)
Number of Establishments by Employment-size class
NAICSTotal
Establishment1-4 EE 5-9 EE 10-19 EE 20-49 EE 50-99 EE 100-249 EE 250-499 EE 500-999 EE 1,000
11
Agriculture, forestry, fishing and
hunting3 3 0 0 0 0 0 0 0 0
22 Utilities 13 3 3 1 0 3 2 0 1 0
23 Construction 1,127 802 153 85 56 16 10 4 1 0
31 Manufacturing 764 291 161 120 96 47 37 7 5 0
42 Wholesale trade 1,106 495 236 172 128 47 19 6 2 1
44 Retail trade 4,524 2,534 914 529 381 87 64 14 1 0
48 Transportation and warehousing 471 261 58 53 49 15 21 8 2 4
51 Information 477 226 82 56 50 28 28 3 3 1
52 Finance and insurance 1,332 635 330 174 97 38 41 10 4 3
53 Real estate and rental and leasing 1,054 652 200 110 65 18 8 0 1 0
54
Professional, scientific, and
technical services2,795 1,651 453 318 209 86 50 19 7 2
55
Management of companies and
enterprises172 50 14 25 29 24 15 7 6 2
56
Administrative and support and
waste management and
remediation services
977 520 126 124 105 46 37 14 4 1
61 Educational services 528 158 81 70 90 81 23 9 5 1
62 Health care and social assistance 3,903 1,548 890 706 436 137 103 43 18 2
71
Arts, entertainment, and
recreation373 162 62 57 50 22 12 4 1 3
72 Accommodation and food services 3,682 1,974 532 469 465 155 78 8 1 0
81
Other services (except public
administration)3,354 2,111 631 344 197 51 15 5 0 0
99 Industries not classified 7 7 0 0 0 0 0 0 0 0
------ Total for All Sectors 26,662 14,083 4,926 3,413 2,503 901 563 161 62 5
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Appendix B: Bureau of Labor Statistics Employee Benefits Survey (March 2014)
Paid Sick Leave Benefit Access (%) Civilian (1) Private
Industry
State and Local
Government
All workers.............. 65 61 89
Worker characteristics
Management, professional, and related 84 82 90
Management, business, and financial 89 88
Professional and related 82 78 90
Teachers 85 89
Primary, secondary, special education teachers 96 96
Registered nurses 81
Service 46 40 85
Protective service 71 46 90
Sales and office 66 63 89
Sales and related 51 51 Office and administrative support 74 71 90
Natural resources, construction, maintenance 58 54 95
Construction, extraction, farming, fishing, and forestry 44 38
Installation, maintenance, and repair 70 67
Production, transportation, and material moving 57 56 88
Production 59 58
Transportation and material moving 55 53
Full time 78 74 98
Part time 25 24 41
Union 83 70 97
Nonunion 62 60 82
Average wage within the following categories:
Lowest 25 percent...... 34 30 74
Lowest 10 percent.... 21 20 61
Second 25 percent...... 68 64 93
Third 25 percent....... 78 73 93
Highest 25 percent.... 87 84 97
Highest 10 percent... 90 87 98
(1) Includes workers in the private nonfarm economy except those in private households, and workers in
the public sector, except the federal government.
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Bureau of Labor Statistics Employee Benefits Survey (March 2014, continued)
Paid Sick Leave Benefit Access (%) Civilian (1) Private
Industry
State and Local
Government
1 to 99 workers.......... 53 52 79
1 to 49 workers........ 51 50 7050 to 99 workers....... 58 56 90
100 workers or more...... 76 72 91
100 to 499 workers..... 68 65 88
500 workers or more.... 85 81 92
Geographic areas
Northeast................ 69 65 89
New England............ 67 63 88
Middle Atlantic........ 69 66 90
South.................... 66 61 90South Atlantic......... 67 62 92
East South Central..... 63 57 90
West South Central..... 66 62 88
Midwest.................. 61 57 87
East North Central..... 61 57 86
West North Central..... 63 58 90
West..................... 64 60 89
Mountain............... 61 57 83
Pacific................ 66 61 91
(1) Includes workers in the private nonfarm economy except those in private households, and workers in
the public sector, except the federal government.
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Appendix C: Comparisons of Paid Sick Leave Legislation in other Jurisdictions
Location &
Law/Bill Number
Philadelphia PhiladelphiaSan Francisco (CA) District of Columbia Connecticut Seattle (WA) Portland (OR) New York City (NY)
Bill 080474 Bill 130004 S.F. Admin. Code
Ch. 12W (2006)
DC Code 32-131.01 et
seq. (2008, amended
2014)
Public Act 11-52
(2011) (effective
9/2012)
Ordinance 123698
(2011) (effective
9/2012)
Ordinance 185926
(2013) (effective
1/2014)
Int. 0097-2010 (2013), Int.
0001-201 (2014) (effective
4/2014)
Exemptions: e.g.
Employer size;
Types of workers;
Tenure of workers
ERs with 5 or fewworkers;
ERs with 5 or fewworkers;
Independentcontractors; studentsemployed by theirhigher educationinstitutions for less than25 hours a week;healthcare workersparticipating inpremium pay programs
EEs not employed inone of the 68enumerated serviceoccupations or by ERSwith fewer than 50 EEs;salaried or exemptworkers; temporaryworkers; certain stateEEs; manufacturingERs; nationally
chartered nonprofits
Federal, state or localgovernment ERs otherthan the City of Seattle;Tier 1 and Tier 2 ERsin business for fewerthan 24 months areexempt
Federal, state or localgovernment ERs otherthan the City ofPortland; independentcontractors; work-studystudents; railroadworkers exemptedunder FRIA
Federal, state or city EEs;work-study students;independent contractors; orcertain physical, occupationaland speech therapists
Does not apply tofederal or state EEs;EEs covered undercollective bargainingagreement; independentcontractor; seasonalworkers; interns; poolworkers
Does not apply tofederal or state EEs;EEs covered undercollective bargainingagreement; temporaryworkers (less than 6months); independentcontractor; seasonal
workers; interns; poolworkers
Business Size
(Small = SB;
Large = LB)
SB: 6-11 EEs;
LB: 11 or more EEs;
A chain establishmentdoing business underthe same trade name asused by 15 or moreother establishments isnot considered a smallbusiness
SB: 6-20 EEs
LB: 21 or more EEs;
A chain establishmentdoing business underthe same trade name asused by 15 or moreother establishments isnot considered a smallbusiness
SB: 1-9 EEs
'LB: 10 or more EEs
SB: 24 or fewer EEs;
MB: 25-99 EEs;
LB: 100 or more EEs
LB: 50 or more EEs Tier 1 (SB): 5-49 FTEs
Tier 2 (Medium 50-249FTEs
Tier 3 (LB) 250 ormore FTEs
SB: 1-5 EEs
LB: 6 or more EEs
SB: 1- 5 EEs
LB:6 or more EEs
'For certain chainbusinesses/franchises, allworkers are counted together todetermine if considered SB
Accrual Rate and
Max Accrual or
Use Amount
1 hour for every 40worked
SB: Max accrual 32hours
LB: Max accrual 56hours;
1 hour for every 40worked
SB: Max accrual 32hours
LB: Max accrual 56hours;
SB: 1 hour for every30 worked, 40 max;
LB: 1 hour for every30 worked, 72 max
SB: 1 hour for every 87worked, max 3days/year; MB: 1 hourfor every 43 worked,max 5 days/yr; LB: 1hour for every 37worked, max 7 days/yr;Tipped restaurant andbar workers earn 1 hourfor every 43 worked,max 5 days/yr
1 hour for every 40worked, 40 max
SB: 1 hour of unpaidtime off for every 30worked, 40 max;
MB: 1 hour for every40 worked, 56 max;
LB: 1 hour for every30, 72 max. LB: withPTO policy: 1 hour forevery 30, 108 max
SB: 1 hour of unpaidtime off for every 40hours worked, 40 max;
LB: 1 hour of paid timeoff for every 30worked, 40 max
SB: 1 hour unpaid ti me off forevery 30 worked, 40 max:
LB: 1 hour for every 30worked, 40 max
Wait Period forAccrual Commencement ofemployment Commencement ofemployment 90 days aftercommencement ofemployment
Commencement ofemployment Commencement ofemployment Commencement ofemployment Commencement ofemployment Commencement ofemployment
Wait Period for
Use
90 days aftercommencement ofemployment
90 days aftercommencement ofemployment
90 days aftercommencement ofemployment
90 days aftercommencement ofemployment
680 hours aftercommencement ofemployment
180 days aftercommencement ofemployment
90 days aftercommencement ofemployment
120 days after commencementof employment
Employers
Existing Policy
No additional timerequired if ER providespaid leave that meetsthe bills accrualrequirements and canbe used for the samepurposes and under thesame conditions
No additional timerequired if ER providespaid leave that meetsthe bills accrualrequirements and canbe used for the samepurposes and under thesame conditions
No additional timerequired if ERprovides paid leavethat meets the billsaccrual requirementsand that can be usedfor the same purposes
No additional timerequired if ER providespaid leave that meetsActs accrualrequirements and thatcan be used for thesame purposes andunder the sameconditions
No additional timerequired if ER providespaid leave that meetsActs accrualrequirements and thatcan be used for thesame purposes andunder same conditions
No additional timerequired if ER providespaid leave that meetsActs accrualrequirements and thatcan be used for thesame purposes andunder same conditions
No additional timerequired if ER providespaid leave that meetsthe bills accrualrequirements and thatcan be used under thesame conditions as lawrequires. Existingpolicies presumedcompliant.
No additional time required ifER provides paid leave thatmeets the bills requirementsand that can be used for thesame purposes and under thesame conditions
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Location &
Law/Bill Number
Jersey City (NJ) Newark (NJ) Paterson (NJ) East Orange (NJ) Irvington (NJ) Passaic (NJ) San Diego (CA) Eugene (OR) Californ
N.J. Ordinance 13-
097 (2013) (effective
1/2014)
NJ Ordinance 13-
2010 (2014) (effective
5/2014)NJ Ordinance 21-
2014 (effective
1/2015)
MC3513-2014
Paid Sick Ordinance
2014 (effective
1/2015)
Ordinance 20390
(effective 4/1/2015)
Ordinance 20537
(effective 7/1/2015)
AB1522
(effective 7/2
Exemptions: e.g.
Employer size;
Types of
workers; Tenure
of workers
EEs of any
governmental entity;
Rutgers University
employees
Federal, state or city
EEs; construction EEs
covered by a CBA;
Rutgers University
employees
EEs of anygovernmental entityor NJ school districtor BOE, constructionunion with CBA,
employees who work< 80 hours per year inPaterson
EEs of anygovernmental entityor NJ school districtor BOE, constructionunion with CBA,
employees who work
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Location & Law/BillNumber
Massachusetts
Question 4 (effective 7/2015)
Montclair (NJ)
Public Question 1
Trenton (NJ) Oakland (CA)
(effective 3/2015)
Exemptions: e.g.Employer size; Types of
workers; Tenure ofworkers
EEs of any governmental entity
or NJ school district or BOE,
construction union with CBA,
employees who work < 80
hours per year in Montclair
EEs of any governmental entity
or NJ school district or BOE,
construction union with CBA,
employees who work < 80
hours per year in Trenton
Business Size
(Small = SB; Large =LB)
SB: 1-10 EEs
LB: 11 or more EEs
SB: 1-9 EEs
LB: 10 or more
Child care, home health and
food service workers counted as
LB for hour requirements
SB: 1-9 EEs
LB: 10 or more
Child care, home health and
food service workers counted as
LB for hour requirements
SB: 1-9 EEs
LB: 10+ EEs
Accrual Rate and Max
Accrual or Use Amount
LB: 1 hour for every 30
worked, max accrual 40
hours/year
SB: Provide equivalent in
unpaid time
1 hour for every 30 worked
SB: Max accrual 24 hours
LB: Max accrual 40 hours
1 hour for every 30 worked
SB: Max accrual 24 hours
LB: Max accrual 40 hours
1 hour for every 30 worked
SB: Max accrual 40 hours
LB: Max accrual 72 hours
Wait Period for Accrual Commencement of employment Commencement of employment Commencement of employment Commencement of employment
Wait Period for Use 90 days after commencement of
employment
90 days after commencement of
employment
90 days after commencement of
employment
90 days after commencement of
employment
Employers ExistingPolicy No additional time required ifER provides paid leave that
meets the bills accrual
requirements and can be used
for the same purposes and under
the same conditions
No additional time required ifER provides paid leave that
meets the bills accrual
requirements and that can be
used for the same purposes and
under the same conditions
No additional time required ifER provides paid leave that
meets the bills accrual
requirements and that can be
used for the same purposes and
under the same conditions
No additional time required ifER provides paid leave that
meets the bills accrual
requirements and that can be
used for the same purposes and
under the same conditions
Mayors Task Force on Paid Sick Leave December 2014 Page
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Location &
Law/Bill Number
Philadelphia Philadelphia
San Francisco
(CA)District of Columbia Connecticut Seattle (WA) Portland (OR) New York City (NY
Bill 080474 Bill 130004 S.F. Admin.
Code Ch. 12W
(2006)
D. C. Code 32-131.01 et
seq. (2008, amended
2014)
Public Act 11-52
(2011) (effective
9/2012)
Ordinance 123698 (2011)
(effective 9/2012)
Ordinance 185926
(2013) (effective 1/2014)
Int. 0097-2010 (2013),
0001-201 (2014) (effec
4/2014)
Family Members
Covered other
than Self, Child,
Spouse or Parent
Foster, stepparent oradoptive parent or legalguardian of EE or EEs
spouse; person legallymarried under PA laws;grandparent or spouse ofgrandparent; grandchild;biological, foster oradopted sibling or spouseof a biological, foster oradopted sibling; lifepartner; any other individ.related by blood foraffinity whose close assoc.
with EE is the equiv. offamily relationship
Foster, stepparent oradoptive parent or legalguardian of EE or EEs
spouse; person legallymarried under PA laws;grandparent or spouse ofgrandparent; grandchild;biological, foster oradopted sibling or spouseof a biological, foster oradopted sibling; lifepartner; any other individ.related by blood foraffinity whose close assoc.
with EE is the equiv. offamily relationship
Domestic partner;sibling;grandchild; child
of domesticpartner; all step-relationships;designatedperson
Domestic partner; parentof spouse; spouse ofchild; sibling; siblings
spouse; live-in partner(living together at least12 months); child livingwith EE for whom EEcares for permanently
Child and Spouseonly
Grandparent; parent-in-law;domestic partner
Domestic partner;grandparent; grandchild;parent-in-law; person with
whom EE was or is in arelationship in locoparentis
Domestic partner; child oparent of spouse or domepartner; grandparent;
grandchild; siblings
Domestic Violence
Coverage and/or
Coverage for
Public Health
Emergency
DV: Coverage for DV,sexual assault, stalking
DV: For EE or familymember
DV: For EE only DV: Coverage for EEs orfamily members DV sexualassault or stalking
DV: Coverage for DV,harassment, sexual assaultor stalking of EE orminor/child/dependent
PHE: Coverage for closuplace of business or childschool or place of care
PHE: Coverage for closureof place of business orchilds school or place ofcare
PHE: Coverage forclosure of place ofbusiness or childs schoolor place of care
Collective
Bargaining
Agreements
Paid leave subjected to acollective bargainingagreement are excluded
Paid leave subjected to acollective bargainingagreement are excluded
Waiver of any andall requirementsin a CBA in clearand unambiguousterms is permitted
A CBA cannot waive thepaid leave requirementsof the Act unless theCBA provides at least 3days of paid leave
Does not preemptor override theterms of any CBAsin effect onlegislationseffective date
Does not diminishobligations under CBAs thatprovide greater benefits; doesnot apply if CBA e xpresslywaives requirements in clearand unambiguous terms;waiver not be permitted byunilateral terms andconditions of employment(e.g., order to continueworking after CBA expires)
Does not diminish ERobligations under CBAsthat provide greaterbenefits
For EEs in construction ogrocery industry, does noapply if CBA expressly wrequirements. For other Edoes not apply if CBAexpressly waives requiremand provides a comparabbenefit.
Carry Over of
Unused Hours
Yes, For LB up to 56
hours of accrued time
SB up to 32 hours ofaccrued time
ER does not have to payfor unused hours
Yes, For LB up to 56
hours of accrued time
SB up to 32 hours ofaccrued time
ER does not have to payfor unused hours
Yes, SB 40 hours,
LB 72 hours
Yes, SB: 1 hour for every
87 worked, max3days/year
MB: 1 hour for every 43worked, max 5 days/year
LB: 1 hour for every 37,max 7 days/year
Carry up to max of
40 unused accruedhours and ERs do
not have to pay forunused hours
Yes, and ERs do not have to
pay for unused hours
Carry up to max of 40
hours of unused accruedhours
Carry up to 40 hours of u
accrued hours.
Pay for Unused
Hours
No No No No No No No ER must pay EE for unussick time at end of the calyear (excludes retire, sep.
Record Retention Period of 5 years as
required by PA law
Period of 5 years as
required by PA law
Period of 4 years Period of 2 years Period of 3 years Period of 2 years Period of 2 years Period of 3 years
Local Enforcement
Agency
Mayor's Office of LaborStandards or officedesignated my ManagingDirector
Mayor's Office of LaborStandards or officedesignated my ManagingDirector
Office of LaborStandardsEnforcement
Dept of EmploymentServices
CT Dept of Labor Office for Civil Rights City may contract withOregon Bureau of Laborand Industries
Dept. of ConsumerAffairs
Mayors Task Force on Paid Sick Leave December 2014 Page
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Location &
Law/Bill Number
Jersey City (NJ) Newark (NJ) Paterson (NJ)East Orange
(NJ)Irvington (NJ) Passaic (NJ) San Diego (CA) Eugene (OR) California
N.J. Ordinance 13-
097 (2013) (effective
1/2014)
NJ Ordinance 13-2010
(2014) (effective
5/2014)
(effective 1/2015) MC3513-2014
Paid Sick
Ordinance 2014
(effective 1/2015)
Ordinance 20390
(effective 4/1/2015)
Ordinance 20537
(effective 7/1/2015)
AB1522
(effective 7/20
Family Members
Covered other
than Self, Child,
Spouse or Parent
Domestic or civilunion partner; spouseunder the laws of any
state; child ofdomestic or civilunion partner; parentor grandparent ofspouse or domesticcivil union partner;grandparent;grandchild; sibling
Domestic or civil unionpartner; child ofdomestic or civil union
partner; parent of spouseor domestic or civilunion partner;grandparent;grandparents spouse ordomestic or civil unionpartner; grandparent;grandchild; sibling
Foster, stepchild, orlegal ward,domestic partner,grandchildren,grandparent, spouseor domestic/civilunionpartner of agrandparent,siblings
Foster, stepchild,or legal ward,domestic partner,grandchildren,grandparent,spouseor domestic/civilunionpartner of agrandparent,siblings
Foster, stepchild,or legal ward,domestic partner,grandchildren,grandparent,spouseor domestic/civilunionpartner of agrandparent,siblings
Domestic partner,grandchildren,grandparent, spouseor domestic/civilunionpartner of agrandparent, siblings
Domestic partner,grandchildren,grandparent, spouseor domestic/civilunionpartner of agrandparent, siblings
Domestic partner,grandchildren, grandparents, siblings, parentsof spouse/domesticpartner
Domestic partner,grandchildren,grandparent, siblings
Domestic ViolenceCoverage and/or
Coverage for
Public Health
Emergency PHE: Coverage forclosure of place ofbusiness or childsschool or place of care
PHE: Coverage forclosure of place orbusiness or childsschool or place of care
PHE: Coverage forclosure of place ofbusiness or childsschool or place ofcare
PHE: Coveragefor closure ofplace of businessor childs schoolor place of care
PHE: Coveragefor closure ofplace of business
or childs schoolor place of care
PHE: Coverage forclosure of place ofbusiness or childs
school or place ofcare
PHE: Coverage forclosure of place ofbusiness or childsschool or place ofcare
DV: DV, sexualassault, stalking
DV: Coverage for DV,sexual assault, stalking
DV: Coverage for Dassault, stalking
Collective
Bargaining
Agreements
Does not diminish ERobligations underCBAs that providegreater benefits. ForEEs covered by aCBA, ordinancebegins to apply upontermination ofagreement.
Does not diminishobligations under CBAsthat provide greaterbenefits; does not applyif CBA expressly waivesrequirements in clearand unambiguous terms;does not apply toexisting CBAs untilexpiration
Does not apply ifCBA expresslywaivesrequirements; doesnot diminish ERobligations underCBAs that providegreater benefits.
Does not apply ifCBA expresslywaivesrequirements;does not diminishER obligationsunder CBAs thatprovide greaterbenefits.
Does not apply ifCBA expresslywaivesrequirements; doesnot diminish ERobligations underCBAs that providegreater benefits.
Does not apply ifCBA expresslywaives requirements;does not diminish ERobligations underCBAs that providegreater benefits.
Paid leave subject tocollected bargainingagreement excluded
Paid leave subject tocollected bargainingagreement excluded
Paid leave subject to bargaining agreemenexcluded
Carry Over of
Unused Hours Yes, but no more than5 days annually
Carry up to 40 ho urs ofunused accrued hours
Carry up to 40hours of unused
accrued hours
Carry up to 40hours of unused
accrued hours
Carry up to 40hours of unused
accrued hours
Carry up to 40 hoursof unused accrued
hours
Carry up to 40 hoursof unused accrued