The Healthy Families and Workplace Act
New sick leave requirements for Colorado companies
As a small or new business owner, have you ever felt that you could not compete with other employers that offer paid sick leave? The decisions that employers can make regarding paid sick leave are now limited as Colorado sought to revamp its laws last year after many years of campaigns and activism. On July 14, 2020, Governor Jared Polis signed the Healthy Families and Workplace Act (HFWA) into law. This act implements new requirements for Colorado companies, including small businesses, and it is crucial for employers to understand how it may affect their policies regarding sick leave. This article will outline section 8-13.3-403 of the HFWA, and it will also provide additional details as to the reasons for which employers are required to pay their employees for “sick time.”
The HFWA mandates that employers must provide his or her employees with paid sick leave, but certain provisions did not immediately go into effect. Beginning January 1, 2021, only employers with 16 or more employees are required to provide their employees with paid sick leave, but on January 1, 2022, all employers, regardless of the size of their business, must pay their staff for using sick leave. Employers and employees alike should be aware of the following rules:
Accrual of paid sick leave begins when the employee starts his or her first day of work
Employees earn at least 1 hour of paid sick leave for every 30 hours worked
Paid sick leave may be used by the employee as it is accrued
Employees are not entitled to accumulate or use more than 48 hours of sick leave in a year, unless the employer chooses to allow a higher limit
Employers may provide employees with an amount of sick leave that meets or exceeds the requirements at the beginning of each year
An employee may carry over up to 48 hours of paid sick leave to the following year
Employers are not required to provide employees with his or her accrued paid sick leave hours if there is any separation from employment
If an employee leaves the company and is rehired by the same employer within 6 months, the employer is required to reinstate any sick leave that the employee did not use prior to the employee’s separation, unless the employer paid the employee for unused sick leave
An employer may advance future paid sick leave to employees
Employers should note that Colorado law requires that they provide paid sick leave for their employees for reasons other than immediate physical illness. Specifically, employees are entitled to paid sick leave if they seek preventative care, if they are responsible for a family member who is ill, and if they seek mental health counseling. However, employees can use paid sick leave for reasons other than their health, or the health of their family members. Employees may also use their accrued paid sick leave if the employee, or the employee’s family member, has been impacted by domestic abuse, sexual assault, or harassment.
The HFWA brought about many other changes, including laws governing sick leave during a public health emergency, how employers must maintain their records, and additional details as to how employees may use sick leave. Employers that do not comply with these new laws, whether intentionally or accidentally, may be subject to severe penalties. We encourage you to contact an attorney at Galvanize Law if you are unsure how to implement these changes within your business.