December 16, 2024

Is Your PTO Policy Ready for 2025?

Karina Sargsian

by Karina Sargsian

If your company uses a single PTO bucket for vacation and sick leave, you may already be out of compliance with state laws. With significant updates to sick leave laws taking effect in 2025, now is the time to ensure your policies are up to date.

States with New or Updated Sick Leave Laws in 2025

  • Alaska: Beginning July 2025, employees will accrue one hour of paid sick leave for every 30 hours worked.
  • California: Expanded reasons for using sick leave, including time off for family members impacted by domestic violence, sexual assault, or stalking.
  • Connecticut: Paid sick leave now applies to all employees, with the employer size threshold reduced from 50 to 25 employees.
  • Missouri: New requirements for up to 7 paid sick days annually (effective May 2025, pending legal challenges).
  • Nebraska: Starting October 2025, employers must offer paid sick leave, with employees accruing one hour for every 30 hours worked.
  • Washington: Broader definitions of “family member” and expanded qualifying reasons for leave, including closures due to public health emergencies.

States That Already Require Paid Sick Leave

  • Arizona
  • California
  • Colorado
  • Connecticut
  • Maryland
  • Massachusetts
  • Michigan
  • Minnesota
  • New Jersey
  • New Mexico
  • New York
  • Oregon
  • Rhode Island
  • Vermont
  • Washington
  • Washington, D.C.

Questions to Ask Yourself About Your PTO Policy

  1. Does your PTO policy distinguish between sick leave and vacation time to meet state-specific requirements?
  2. Are you accurately tracking sick leave accruals and usage for employees across different states?
  3. Do your policies comply with the most employee-friendly sick leave laws in jurisdictions where you operate?
  4. Are part-time, temporary, and other non-traditional employees covered appropriately?
  5. Have you conducted a recent review of your PTO policies to ensure compliance with updated state laws?

How Holland & Hart Can Help

Holland & Hart’s Labor and Employment team has deep expertise in navigating state-specific sick leave laws and PTO policies. We stay at the forefront of these evolving requirements and are here to assist your business in proactively reviewing and updating policies to ensure compliance. The volume of year-end compliance tasks creates burdens for human resources an in-house legal teams alike. To ensure your organization is prioritizing the right issues and implementing efficient solutions, it is prudent to consult with outside employment counsel.