07/ 25/ 2007
How to set a family-leave policy that won't leave your business in a bind
Family leave has become a hot topic throughout the country as federal and state lawmakers push employers to provide mandatory leave benefits to their employees. In 2002, California became the first state to require employers to provide paid time off for employees who needed to care for a new child or sick family member. Other states are looking to follow California's lead. Whether you're obligated to provide time off or simply wish to provide it to your employees as a benefit, consider the following before implementing a time-off policy. Some of these considerations are legal requirements, while others just make good business sense.
Meeting legal obligations
Are there any local, state or federal regulations that govern the type of leave offered or requested? Be sure to check your state laws and any applicable federal regulations prior to implementing (or failing to implement) a leave policy. If a local, state or federal statute covers the type of leave requested, you're obligated to abide by the minimum requirements of that law. For example, the federal Family and Medical Leave Act, which applies to companies with 50 or more employees, requires employers to provide up to 12 weeks of unpaid time off to care for a serious medical condition.
Under federal law, employers aren't required to give paid time off for sick days or vacation days. But state law or local laws might require you to offer employees some paid time off. For instance, a new ordinance passed in San Francisco requires all city companies to provide up to 72 hours of paid time off for their employees. These types of regulations have specific rules regarding who qualifies for the leave and in what cases the leave may be taken.
Setting your policy
What type of policy should you implement? Some employers provide only medical leave, while others provide sick leave and vacation leave. Many employers are moving toward a paid time-off (PTO) policy. Such a policy combines sick and vacation leave into one policy. Once employees are eligible to take PTO, they may do so for whatever reason—medical, vacation or even just a personal day.
Who is eligible for the benefit? Depending on the type of employee, you may or may not want to provide time off. For example, many employers require that the employee work full-time prior to providing paid leave.
Putting leave into action
How will the leave policy work? First you must decide how the leave benefits will accrue, and whether the benefits will be renewable at the end of the year. In some states, employers may force employees to "use it or lose it," meaning that if employees don't take time off during the year, they are not able to carry it forward into the next year. Other states will not allow employers to implement this sort of policy. In these states, employees must be allowed to carry forward any unused time off into proceeding years.
Regardless of what kind of leave policy you institute, make sure you implement it in a fair and nondiscriminatory manner. Remember, a good leave policy can go a long way in helping you attract and retain top employees.
NFIB.com
For more guidance from the NFIB Small Business Legal Center on paid and unpaid family-leave policies as well as other legal issues integral to your business, download the Federal Employment Law Handbook, an exclusive member benefit available at www.NFIB.com/legal.
