Are you required to provide Paid Sick Leave (PSL) to your retail employees? The answer is “depends on where you’re located and how big you are.” This isn’t an easy answer because labor laws differ by state/ city/ size. Let’s get into the the details:
No Federal Requirements of Paid Sick Leave
There are no federal laws requiring your retail store to offer paid sick leave. If your state has no regulations on paid sick leave, then it defaults to the federal level, which is none. That doesn’t mean you can’t offer it; it means you will not be forced to offer this benefit to your employees. However, 20+ states do mandate PSL of some kind or other. These laws apply to you if your retail company has a location in one of those states, cities, or counties. These laws also apply to you if you have a remote employee working in one of these areas.
(CAUTION: Some State and Local laws may have changed since the publishing of this article. As always, we encourage you to research the topic yourself and to seek the advice of a labor law lawyer if needed. This article is meant as general information only.)
States that Require Paid Sick Leave from all Retail Employers
Eight states, plus the District of Columbia, have mandatory paid sick leave, no matter your organization’s size. Those states are Arizona, California, Illinois, Minnesota, New Jersey, New Mexico, Vermont, and Washington.
The amount of sick days differs per state, as does the rate of sick time is earned. Most states that have required PSL, have a mandate of 40 hours maximum of sick leave per year, but other locations have a maximum PSL of 48 hours or 52. One location has no maximum on how much PSL can be earned.
The rate that PSL is earned can also differ. Some places, employees earn 1 hour per every 30 hours worked, but in other locations the employees earn at a rate of 1 hour per every 52 hours worked.
States that Require Paid Sick Leave from Retail Employers of a Certain Size Only
Another nine states require PSL when you reach a certain size. In these states, once you hit that limit, you have to offer PSL to all of your staff: Colorado (16+ employees), Connecticut (50+), Maine (10+), Maryland (15+), Massachusetts (12+), Michigan (50+), New York (5+), Oregon (10+), and Rhode Island (18+).
If you are located in any of these states, you’ll want to give careful thought when your employee count comes close to one of these thresholds. Once you cross over, then all your employees become eligible for paid sick leave, so take the time to study your state law and see how they define an employee unit. (Part-time Equivalent, Full-Time Equivalent, and so on.)
States where Certain Cities or Counties Require Paid Sick Leave
Another eight states had additional PSL laws for particular localities only. These might be the only ones in that state or they might be more stringent than state requirements. These laws apply to employees who work in these locations, not necessarily where they live or even where your store is located. If you have a remote employee working in one of these counties or cities, you could be liable to these laws even if your actual facilities are in a different city or county. Take the time to know how the law applies your ministry.
These locations are as follows: California (Berkeley, Emeryville, Los Angeles, Oakland, San Diego, and San Francisco); Illinois (Chicago, Cook County); Maryland (Montgomery County); Minnesota (Duluth, Minneapolis, St. Paul); New Mexico (Bernalillo County); New York (New York City, Westchester County); Pennsylvania (Allegheny, Philadelphia, Pittsburgh); and Washington (Seattle, Tacoma).
Quick Reference Table for Paid Sick Leave
(As of 9/9/24- this information is subject to change as state and local laws are implemented and/or revised. Please verify this information before using for your employees.)
| STATE | MINIMUM # OF EMPLOYEES BEFORE LAW APPLIES | MAXIMUM HOURS OF PSL PER YEAR | PSL EARNED PER HOURS WORKED** |
| AZ | all | 40 | 1/30 |
| CA* | all | 40 | 1/30 |
| CO | all | 48 | 1/30 |
| CT(#) | 50+(#) | 40 | 1/40 |
| DC | all | differs | differs |
| IL* | all | 40 | 1/40 |
| MA | 12+ | 40 | 1/30 |
| MD* | 15+ | 64 | 1/30 |
| ME | 10+ | 40 | 1/40 |
| MI | 50+ | 40 | 1/35 |
| MN* | all | – | 1/30 |
| NJ | all | 40 | 1/30 |
| NM* | all | 64 | 1/30 |
| NV | 50+ | 40 | 0.0193/1 |
| NY* | 5+ | 40-56 | 1/30 |
| OR* | 10+ | 40 | 1/30 |
| PA*(%) | see locality | see locality | see locality |
| RI | 18+ | 40 | 1/35 |
| VT | all | 40 | 1/52 |
| WA* | all | – | 1/40 |
*= States with additional PSL regulations in particular cities or counties.
**= States may change the rate that PSL is earned and it can differ depending on the size of your organization. Please verify the rate in your area before applying.
#= Connecticut (at time of publishing) requires PSL from companies of 50+ staff and only for “service workers”, but that term is widely defined, so please verify if any of your employees fall under that category. Law is expanding each year, adding in more categories of employees and lowering the amount of employees needed before PSL is mandated. Please check current law requirements.
%= Pennsylvania currently has NO state PSL requirements, but various cities/counties in PA do. Please check your local area.
Get Help with Your Employee Paid Sick Leave Policies
At New Wind, we design customized Retail Employee Handbooks that cover essential policies and procedures like paid sick leave, overtime rules, and employee classifications.
Learn More: Retail Employee Handbooks.
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