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Run: Sick Leave Policy

A standalone sick leave policy template for employers that keep sick leave separate from PTO. It covers accrual, permitted uses, notice, documentation, and c...

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Purpose

This policy establishes a standalone sick leave program for employees who are not covered by a combined PTO bank. It is intended to provide paid time off for qualifying health-related absences, support workplace attendance management, and ensure compliance with applicable federal, state, and local laws, including paid sick leave statutes and the Family and Medical Leave Act (FMLA). Where a law provides greater rights than this policy, the law controls.

Scope

This policy applies to all eligible employees in the United States, subject to any state or local paid sick leave requirements and any collective bargaining agreement that provides different terms. Applicable jurisdictions may include, without limitation, California, New York, New Jersey, Massachusetts, Oregon, and Washington. This policy does not replace FMLA, ADA reasonable accommodation obligations, or any other legally protected leave entitlement.

Definitions

**Sick leave:** Paid time off used for qualifying medical or safety-related reasons under this policy. **Policy holder:** The company or employing entity that administers this policy. **Interactive process:** The good-faith, individualized process used to evaluate a request for reasonable accommodation under the ADA. **Essential function:** A fundamental job duty of the position, as determined under applicable law. **FMLA leave:** Job-protected unpaid leave for qualifying medical and family reasons under the Family and Medical Leave Act. **Good-faith:** Honest, timely, and accurate participation in reporting, requesting, and documenting leave use. **Documented warning:** A written notice describing a policy violation, expected correction, and potential consequences. **PIP:** A performance improvement plan used to address attendance or performance concerns when appropriate and lawful.

Eligibility and Accrual

Eligible employees accrue sick leave in accordance with applicable law and company payroll practices. Accrual rates, frontloading, annual caps, carryover limits, and usage limits will be administered at least to the minimum standard required by the employee's work location. **California employees:** Sick leave must comply with California Labor Code section 246 and any applicable local ordinance. **New York employees:** Sick leave must comply with New York Labor Law section 196-b and any applicable local ordinance. **New Jersey employees:** Sick leave must comply with the New Jersey Earned Sick Leave Law, N.J.S.A. 34:11D-1 et seq. **Massachusetts employees:** Sick leave must comply with Massachusetts Earned Sick Time Law, M.G.L. c. 149, § 148C. **Oregon employees:** Sick leave must comply with Oregon sick time law, ORS 653.601 to 653.661. **Washington employees:** Sick leave must comply with Washington paid sick leave law, RCW 49.46.200 to 49.46.210. Employees will be informed of their applicable accrual method, balance, and any state-specific rules through payroll or HR systems.

Permitted Uses

Employees may use sick leave for reasons permitted by applicable law and company policy, including: - The employee's own physical or mental illness, injury, or health condition; - Diagnosis, care, treatment, or preventive care for the employee; - Care for a qualifying family member with a health condition; - Absences related to domestic violence, sexual assault, stalking, or other safety-related reasons where required by law; - Closure of the employee's workplace or a child's school or place of care due to a public health emergency, where required by law; - Any other use required by applicable state or local paid sick leave law. Sick leave may also run concurrently with FMLA leave when the leave reason qualifies under both this policy and FMLA.

Requesting Leave and Notice

Employees should notify their manager or designated HR contact as soon as practicable when sick leave is needed. When the need for leave is foreseeable, employees should provide advance notice consistent with operational needs and applicable law. When the need is unforeseeable, employees should notify the company as soon as possible. The company may require employees to follow reasonable call-in procedures that do not interfere with the right to use protected sick leave. Employees must provide enough information to identify the leave as potentially protected, but they are not required to disclose detailed medical information to their manager. If the absence may qualify for FMLA or ADA accommodation, HR will evaluate the request and initiate the appropriate process.

Documentation and Verification

Documentation may be requested only when permitted by applicable law and only after the minimum threshold allowed by law or company practice. The company will not request documentation for every absence and will not require employees to disclose diagnosis details unless legally permitted and necessary. Any medical information collected will be handled confidentially and stored separately from personnel files, consistent with ADA, FMLA, and applicable privacy requirements. The company may require employees to provide reasonable verification for extended absences, pattern abuse concerns, or leave that may qualify under FMLA, provided the request is made in good faith and in compliance with applicable law.

Carryover, Caps, and Payout

Unused sick leave will be carried over or capped in accordance with applicable state and local law and company payroll administration rules. Where a jurisdiction requires carryover, the company will comply with the minimum required amount. Where frontloading is used, the company will ensure the method satisfies applicable legal requirements. Unused sick leave is generally not paid out at separation unless required by a written agreement, company practice, or a specific law applicable to a different leave bank. As of 2026, no state requires payout of unused sick leave upon separation; however, local ordinances or employer commitments may create different obligations.

Interaction with FMLA, ADA, and Other Leave

When a leave request may involve a serious health condition, HR will assess whether FMLA applies and provide the required notices. If an employee has a disability, the company will engage in the ADA interactive process to determine whether a reasonable accommodation is available, including leave as an accommodation when appropriate. Sick leave under this policy does not reduce an employee's rights under FMLA, ADA, workers' compensation, pregnancy-related protections, or any applicable state or local leave law. Where leave qualifies under multiple laws, the company may designate leave concurrently when permitted.

Roles and Responsibilities

**Employees** must accurately report absences, follow call-in procedures, use leave for permitted purposes, and provide required documentation when lawfully requested. **Managers** must route leave requests to HR, avoid discouraging protected leave, and maintain confidentiality. **HR** must administer accruals, track balances, evaluate FMLA/ADA overlap, maintain records, and apply jurisdiction-specific rules. **Policy holder** must ensure payroll and HR systems reflect the correct accrual, carryover, and notice requirements for each jurisdiction.

Compliance, Misuse, and Discipline

The company prohibits retaliation, interference, or discrimination for requesting or using protected sick leave, FMLA leave, or ADA accommodations. This policy will be administered consistently with NLRA Section 7 rights, EEOC guidance, FLSA wage-and-hour rules, and applicable state paid sick leave laws. Misuse of sick leave, falsification of records, failure to follow lawful call-in procedures, or abuse of leave may result in a documented warning, loss of leave eligibility to the extent permitted by law, a PIP where appropriate, or other discipline up to and including termination. Discipline will not be imposed for protected leave use or for exercising legally protected rights.

Review and Revision

This policy will be reviewed at least annually and whenever there is a material change in federal, state, or local leave law. Jurisdiction-specific addenda may be issued to address local paid sick leave ordinances or special state requirements. The policy holder is responsible for approving updates and communicating material changes to employees.

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