Effective July 1, 2012 certain contractors to the City of Philadelphia will be required to provide paid sick days to their employees.  Employees will earn one hour of sick pay for each 40 hours worked. If you have fewer than 11 employees, the cap is 4 days per year.  For "larger" businesses, the cap is 7 days per year.

The scope of covered employers is not entirely clear but "covered employers" appears to include (but is not limited to):

  1. City subcontractors with 25 or more employees.
  2. For-profit Service Contractors, which receive or are subcontractors on contract(s) for $10,000 or more from the City in a twelve-month period, with annual gross receipts of more than $1,000,000.   
  3. Non-profit Service Contractors which receive or are subcontractors on contract(s) from the City of more than $100,000 in a twelve-month period.

Employers who are covered and who offer flexible paid time off policies may need to modify them.  For example, assume a covered employer provides an employee with 10 PTO days per year and an employee uses all 10 for personal reasons unrelated to sickness.  Does the employer now have to provide 4 or 7 additional days for sickness if the employee becomes ill?  Answer should be NO. I fear it will be YES.

More guidance to follow .

THIS BLOG SHOULD NOT BE CONSTRUED AS LEGAL ADVICE, AS ESTABLISHING AN ATTORNEY CLIENT RELATIONSHIP OR AS APPLYING TO SPECIFIC FACTUAL SITUATIONS