Paid Sick Leave Laws Continue Their Popularity Through State Ballot Initiatives

Paid sick leave laws continue their expansion across the United States. The three most recent additions to the cadre of states with a paid sick leave law are Alaska, Missouri, and Nebraska. All three new state laws were passed through a ballot initiative process, bypassing the states’ legislatures. The continued trend of new state sick leave requirements continues to challenge multi-state employers who must monitor and comply with sick leave laws in 18 states and the District of Columbia, not to mention the various local ordinances requiring paid sick leave.

Below is a quick overview of the three new state sick leave laws, set for implementation in various times in 2025.

Alaska

Effective July 1, 2025, the new Alaska sick leave law, based on the passing of Ballot Measure 1, requires the accrual of one (1) sick leave hour for every 30 hours worked. The size of the employer will determine the amount at which the employer can cap accrual and use. Employers with fewer than 15 employees can cap annual accrual and usage at 40 hours per year, while employers with 15 or more employees may cap annual accrual and usage at 56 Hours. All unused sick leave must carry over from year to year — with no cap on the amount that carries over. Certain industries (including many nonprofits, fishing, agriculture, and domestic service) are exempt from the act. The sick leave requirement may be rolled into existing PTO policies, provided that the policy is sufficient to meet the requirements of the law. The ballot measure also included provisions for an increase in minimum wage and a prohibition on requiring employee attendance at meetings regarding the employer’s opinion on religious or political issues.

Missouri

In Missouri, voters passed Proposition A, which will take effect on May 1, 2025. Like Alaska’s new sick leave law, Missouri employees will accrue one (1) hour of paid sick leave for every 30 hours worked, with an annual usage cap of 40 hours for employers with fewer than 15 employees and 56 hours for those with over 15 employees. Alternatively, under the new Missouri law, employers can frontload the sick leave an employee is expected to accrue in one year. If an employer chooses to frontload the sick leave, it may also elect to pay out unused sick leave at the end of the year, rather than carry the unused leave over to the next year. Employers may roll the sick leave into a PTO policy so long as the PTO policy is sufficient to meet the accrual requirements of the sick leave law and the leave can be used for the same purposes and under the same conditions.

Nebraska

Nebraska’s new sick leave law is not set to take effect until October 1, 2025 — the latest implementation date of the three new sick leave laws. It, too, became law after Nebraska voters passed a ballot initiative, and it shares some similarities with the Alaska and Missouri laws. Employees will accrue sick leave at a rate of one (1) hour of sick leave for every 30 hours worked. There are differing requirements for small and large employers, but the employee threshold is 19 or fewer employees to limit accrual and use to 40 hours per year, while employers with 20 or more employees may limit accrual and use to 56 hours per year. All accrued paid sick time is carried over from year to year. Alternatively, employers may frontload sick leave. If they do so, they may also pay out unused sick time at the end of the year rather than carry it over. Like the other newly passed state laws, employers may roll this sick leave into an existing PTO policy so long as the policy is sufficient to cover the amount of leave and may be used for the same purposes and under the same conditions as the sick leave law.

While many things appear the same or similar between the three new laws, there are differences and details that employers in each of the three states must familiarize themselves with. In addition, because the implementation dates for the new laws are staggered throughout the year, the legislatures of these states may make changes prior to the new laws’ effective dates. As a result, employers with employees in any of these three states should review the requirements in detail and track whether any amendments are passed prior to implementation.

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