New leave laws in the United States are constantly taking effect, and the first nine months of 2024 have been no different. Many new laws have come into effect, meaning employers will need to evaluate whether they are meeting these new workforce compliance needs.
The evolving regulatory environment poses challenges and opportunities for employers to navigate these updates. Although this new legislation is rightly meant to protect workers, unfortunately, it also creates costly compliance concerns for employers. Businesses will need to quickly take steps to meet these new requirements or face the risks of compliance failure.
This article explores several pivotal changes to state laws that are shaping employer responsibilities for the foreseeable future. Here’s a summary of a few of the new U.S. leave laws:
Oregon Expands Leave Entitlements to Victims of Bias Crimes
Effective January 1, 2024, Oregon expanded three major employee leave entitlements to victims of bias crimes. A “bias crime” is defined as the commission, attempted commission, or alleged commission of an offense because of the other person’s race, color, religion, gender identity, sexual orientation, disability, or national origin.
The leave entitlements in Oregon expanded to include:
- Leave for victims of domestic violence, harassment, sexual assault, or stalking
- Paid Leave Oregon (a.k.a Oregon Paid Family Medical Leave)
- Leave taken as a reasonable safety accommodation
Oregon Family Leave Act (OFLA) and Paid Leave Oregon
On July 1, 2024, changes to OFLA and Paid Leave Oregon took effect to better align the two leave entitlements. Among other changes, OFLA leave no longer includes child bonding leave or serious health condition leave for an employee or their family member. Instead, bonding leave and serious health condition leave are now only covered under Paid Leave Oregon.
Chicago Paid Leave and Paid Sick and Safe Leave Ordinance
Chicago’s Paid Leave and Paid Sick and Safe Leave Ordinance took effect July 1, 2024. Under this law, employees earn one hour of Paid Leave and one hour of Paid Sick Leave for every 35 hours worked within the city of Chicago, up to 40 hours of paid leave per year.
Alternatively, employers can choose to frontload Paid Leave and Paid Sick Leave to workers within certain time limits after the beginning of their employment. Employees can use Paid Leave for any reason while Paid Sick Leave can only be used for specified purposes such as recovering from an illness or caring for an ill family member.
California Reproductive Loss Leave
Beginning January 1, 2024, California required employers with five or more employees (and all public employers) to grant workers employed at least 30 days with five days of leave for a reproductive loss event. A reproductive loss event includes a failed adoption, failed surrogacy, miscarriage, stillbirth, or unsuccessful assisted reproduction.
Reproductive loss leave must be completed within three months of the loss event but if an employee takes other leave under state or federal law before or immediately after the reproductive loss event, reproductive loss leave must be completed within three months of the other leave ending.
California Paid Sick Leave Expanded
As of January 1, 2024, California increased the Paid Sick Leave (PSL) entitlement employers must grant to employees under the state’s Healthy Workplaces, Healthy Families Act. Before 2024, qualified California employees had to be provided with at least three days or 24 hours of PSL per year, whichever was greater.
On January 1, that amount increased to at least five days or 40 hours of yearly leave. Standard accrual of PSL under the new law remains one hour for every 30 hours worked, but the annual cap on accruing PSL increased from six days (or 48 hours) to 10 days (or 80 hours).
Illinois Paid Leave for All Workers Act
The Illinois Paid Leave for All Workers Act took effect January 1, 2024. Under this law, Illinois employers are obligated to provide employees with up to 40 hours of paid leave per benefit year to be used for any reason. Employees accrue one hour of paid leave for every 40 hours worked, but rather than accruing leave, employers may frontload 40 hours of paid leave to employees on the first day of their employment or the first day of the benefit year.
Rhode Island Temporary Caregiver Leave Benefits Extended
In July 2024, Rhode Island amended its Temporary Caregiver Insurance law (TCI) by increasing the amount of leave benefits available to employees beginning January 1, 2025. Eligible employees in Rhode Island can currently take six weeks of TCI leave to care for a newborn, or newly adopted child, or to care for a family member with a serious health condition. On January 1, 2025, this leave entitlement increases to seven weeks, and then increases to eight weeks on January 1, 2026.
Minnesota Earned Sick and Safe Leave
Minnesota’s Earned Sick and Safe Leave law became effective January 1, 2024. It requires employers to grant paid leave to employees anticipated to work at least 80 hours a year for an employer in Minnesota. Employers must provide each employee with one hour of ESST for every 30 hours worked, up to 48 hours per year.
Employees can use Earned Sick and Safe Time (ESST) leave for these reasons
- The employee’s mental or physical illness or care
- A family member’s mental or physical illness or care
- Absences due to domestic abuse, sexual assault or stalking of the employee or a family member
- The employee’s workplace or family member’s school or care facility closes due to weather or public emergency
- When a health authority or health professional considers the employee or a family member a communicable disease risk
- To make funeral arrangements, attend a funeral or memorial service or address financial or legal matters arising after a family member’s death.
Michigan Earned Sick Time Act
On July 31, 2024, the Michigan Supreme Court reinstated the state’s Earned Sick Time Act (ESTA) effective February 21, 2025. ESTA will require employers with 10 or more employees to allow its workers in Michigan to accrue one hour of paid sick leave for every 30 hours worked and to use up to 72 hours of leave per year. There are reduced paid sick leave obligations for businesses with fewer than 10 employees.
Keeping Your Organization Compliant with New Leave Laws
New employee leave laws and leave expansions will continue to frame employer compliance obligations in the United States, requiring employers to actively stay current with this landslide of new leave laws. Employers should seek legal advice if needed to stay compliant and must understand the effect new leave laws will have on their workplace environment and their bottom line.
It’s also important to consider how implementing workforce compliance software can help businesses efficiently manage regulatory changes, minimizing the risk of non-compliance and associated penalties. Worker rights are crucial in today’s employee-friendly environment, and staying abreast of new leave legislation ensures employers will be ready to address any leave of absence challenges they may face.
Follow the Compliance Navigator series to stay ahead of new workplace compliance changes and discover best practices for 2024 and beyond.
