© 2020 American Payroll Institute, Inc. June 15, 2020 Volume 22 Issue 12 Paid Sick Leave Requirements Related to Rehired Employees Arehiring s businesses begin to reopen, some companies are employees who were laid off at the beginning of the COVID-19 public health crisis. The rehiring of employees might trigger certain provisions in paid sick leave (PSL) laws, such as requirements to reinstate previously accrued, unused PSL or apply previously worked time toward probationary period requirements (i.e., waiting time prior to use). Reinstatement of previously accrued, unused PSL Length of separation threshold. Most PSL laws require employers to reinstate any previously accrued, unused PSL if the employee is rehired within a certain time frame. Time frames vary by jurisdiction, but range from four months to one year. Measurement units also vary (e.g., hours, days, weeks, a year). At least one jurisdiction Massachusetts provides different reinstatement requirements for multiple time frames. Additional limitations might apply. Be sure to check requirements closely because additional restrictions might apply. For example, Nevada only requires reinstatement if the separation was involuntary. Provision most generous to employee applies. In places where both state and local PSL requirements apply, the employer must follow the law that is most beneficial to the employee. If the local ordinance is silent on an issue, provisions from the state law might apply. Payout on termination. Although most jurisdictions do not require payout on termination, if the employer paid out the equivalent of the value of accrued PSL when the separation began, the employer is not required to reinstate previously accrued PSL upon rehire. Waiver of probationary period prior to use Waiver of waiting time requirements. If the rehired employee fulfilled the waiting time requirements during the previous period of employment, most jurisdictions waive the probationary period, allowing for immediate use of accrued PSL upon recommencement of employment. Similar to reinstatement requirements, some jurisdictions only waive the waiting period requirement if the employee is rehired within a certain time frame, which can range from 90 days to one year. If there is no reinstatement of previously earned PSL but the employee is immediately eligible to use PSL, he or she can use PSL as it is accrued. Length of separation threshold might differ from reinstatement threshold. Of the jurisdictions that provide a length of separation threshold for both reinstatement of PSL and waiver of probationary period, most but not all use the same threshold for both. Additional limitations. Similar to reinstatement requirements, additional restrictions on the waiver might apply. For example, in Vermont, if the separation from employment was involuntary, previous work time counts toward the waiting time requirement, but if the separation was voluntary, no waiver of probation is required. Credit toward fulfillment of probationar y requirement. Even if the rehired employee did not complete the probationary period during the previous period of employment, many jurisdictions credit the prior time worked toward the waiting period requirements. The chart that follows provides reinstatement requirements, including any length of separation limitations, and any probationary period waiver requirements for rehired employees (e.g., whether the probationary period is waived and the rehired employee can begin using accrued PSL immediately upon the recommencement of employment). State and Local Paid Sick Leave Rehire Requirements State Reinstatement Required When Rehired Within When Eligible to Use AZ 9 months Immediately CA 1 year, unless paid out at termination. Immediately CA Berkeley n/a State requirement applies: 1 year n/a State requirement applies: Immediately CA Emeryville n/a n/a CA Los Angeles 1 year, unless paid out at termination. If previously eligible, immediately. CA Oakland n/a n/a
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