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Articles from The Insider’s Report archives go back over several years. Some articles may include date-sensitive information or other information that has changed over time.
Please consult with your advisor or Kallas Company for updated information or if you have any questions.
  • The law took effect on March 29, 2019.
  • The law applies to any employer with 50 or more employees regardless of full or part-time status. Although this definition is still ambiguous, the best guess is that the state will refer to your quarterly Unemployment Form 1028 to determine if you have 50 employees.
  • You also may be liable if you are part of a common control group of restaurants totaling 50 or more employees. As of this writing, there has been no definitive rules promulgated but experts believe the state will use the definition under the Federal Family Leave Act which counts all affiliated companies if there is common administration, shared employees, common or centralized purchasing, advertising, banking, accounting, employee rules and/or ownership decisions.
  • If you have 50 or more employees, you are required to accrue 1 hour of paid medical leave for every 35 hours worked by any employee. Employees who work under 25 hours per week on average are excluded.
  • The accrual of hours starts March 29, 2019, and an employee would be eligible for the maximum 40 hours of paid leave after 1400 hours of work.
  • Employees who work less than 25 hours per week on average and managers who are exempt from the overtime provisions are not eligible for paid medical leave benefits.
  • There is a list of what type of medical problems are eligible for paid medical leave. The list can be obtained from Kallas.
  • Paid medical leave must also be paid for an employee to take care of family members in certain situations. The list of family members can be obtained from Kallas.
  • The amount you have to reimburse the employee for paid medical leave does not include tips.
  • There is a safe harbor that requires no recordkeeping if an employer provides at least 40 hours per year to an eligible employee.
  • The act allows an employer to formulate his own rules on notice, procedures, and documentation requirements. This rule allows you a lot of flexibility if properly constructed. Contact Kallas for sample employer Paid Medical Leave Rules.
  • The fine for non-compliance is $1,000 per incident (not defined as yet) and $100 for not posting the new law.

For more information, contact Julie at x103 to discuss your options and how to comply at the lowest cost possible.

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