Philadelphia Ordinance Requires Paid Sick Time to Employees of City Contractors

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Last week, Philadelphia’s City Council saw its 21st Century Minimum Wage and Benefits Ordinance (Bill No. 110557, the "Ordinance") become law without Philadelphia Mayor Michael Nutter's signature. This Ordinance, which was passed by City Council by a vote of 15-2, is a follow-up to a previous, more expansive version (Bill No. 080474-AA). The prior bill, which was vetoed by Mayor Nutter earlier this year, would have required most employers located in Philadelphia to provide paid sick leave for their employees. While narrowed from the prior version, the newly enacted Ordinance will require certain contractors operating in Philadelphia to provide their full-time, non-temporary, non-seasonal employees a certain amount of paid sick time each year. The new Ordinance is effective on July 1, 2012.

The Ordinance requires "covered employers" to provide employees at least one hour of paid sick time for each 40 hours worked in Philadelphia. For employers with at least five but less than 11 employees, the cap on required paid sick time for each employee is 32 hours per year; for employers with more than 11 employees, the cap on required paid sick time for each employee is 56 hours per year.

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