This bill mandates that employers with 15 or more employees who offer paid earned time, such as vacation or paid time off, must pay their employees for any unused earned time. Employers are required to inform employees in writing about the policy regarding the accrual or use of earned time, process requests and approvals for earned time, and provide an accounting of used and remaining earned time. The bill specifies that "earned time," "vacation," or "paid time off" are considered compensation and thus constitute wages due, while "sick time" or "sick days" are not considered wages due.

The bill also outlines that employees who leave their job in good standing or are laid off must be paid for their unused earned time by the next regular pay period. In cases where a business changes ownership, the previous employer must either pay the employee for unused earned time or transfer it to the new employer. The fiscal note attached to the bill indicates that there is an indeterminate fiscal impact on state, county, and local expenditures, which could range up to $4.5 million for the state, depending on how much paid leave is utilized versus paid out. The bill is set to take effect 60 days after its passage. The fiscal impact is not expected to occur until FY 2024.

Statutes affected:
Introduced: 275:43