As any savvy employer will tell you, the start of the new year comes with new employee leave obligations. Effective January 1, 2024, employers across the country must comply with various new employee paid leave laws and updates. Employers in all jurisdictions would be wise to review any new leave laws and amendments to existing leave laws for the jurisdictions in which they operate, and update their leave practices, employee handbooks, notices, and recordkeeping policies accordingly. This article provides a summary of some of the key employee paid leave laws, including paid sick leave and paid family leave laws, that went into effect at the start of 2024.

Minnesota

On January 1, 2024, Minnesota's new statewide earned sick and safe time law went into effect, requiring most Minnesota employers to provide paid sick and safe leave to their Minnesota employees. Employees who work at least 80 hours in Minnesota are entitled to earn one hour of paid sick time for every 30 hours worked, up to 48 hours per year. Temporary and part-time employees are covered by the law, but independent contractors are not. To comply with the law, employers must also list the total number of earned and used sick and safe time hours on earnings statements provided to employees at the end of each pay period, provide employees with a notice of the law at the start of employment, and include a notice of certain rights under the law in the employee handbook (if one exists). The law prohibits employers from retaliating against any employee for requesting or taking sick and safe leave, or for exercising their rights under the statute, and permits aggrieved employees to file complaints with the Minnesota Department of Labor and Industry or to file a civil action in Minnesota state court.

Illinois

The Paid Leave for All Workers Act ("the Act"), passed in March of 2023, finally went into effect on January 1, 2024 in Illinois. Beginning on January 1 or at the start of employment, virtually all employees working in Illinois^[1] are entitled to accrue one hour of paid leave for every 40 hours worked, up to 40 hours in a 12-month period. Exempt, salaried employees are deemed to work 40 hours in each workweek unless their workweek is typically less than 40 hours. Importantly, employees may use accrued leave for any reason of their choosing, not just the sick or safe leave purposes permitted under most other state paid leave laws. Employees are eligible to begin taking accrued leave on the later of 90 days after their employment begins or 90 days after January 1, 2024, in increments of no less than two hours. Employees must be permitted to carry over all accrued, unused hours into the next calendar year, unless employers opt to "frontload" all 40 hours at the start of the year. The Act prohibits employers from retaliating against any employee for exercising or attempting to exercise their rights under the Act, supporting another employee exercising their rights under the Act, or opposing practices that the employee believes to be in violation of the Act. As we have previously reported, the Act also requires employers to provide notice of the law to their employees, and to maintain certain wage- and leave-related records for at least three years.

Colorado

More than three years after passing the law that established Colorado's state-run Family and Medical Leave Insurance (FAMLI), the program went live on January 1, 2024. Compliance with the program is mandatory for most employers with one or more employees working in Colorado. While most Colorado employers and employees actually began paying into the program via state payroll taxes in 2023, the program began providing partial wage-replacement benefits to employees at the start of 2024. Under the program, eligible Colorado workers may apply to take up to 12 weeks of leave in a one-year period to: (1) care for a new child during the first year after their birth, adoption, or foster care placement; (2) care for a family member with a serious health condition; (3) care for an employee's own serious health condition; (4) arrange for a family member's military deployment; and/or (5) address the impacts of domestic violence. Individuals with serious health conditions caused by pregnancy or childbirth complications may apply for up to four additional weeks of FAMLI leave. All leave and wage-replacement benefits are administered by the Colorado Department of Labor & Employment, Division of Family and Medical Leave Insurance.

Employees may apply to take the leave continuously or intermittently, or can utilize a reduced schedule, and there is no minimum amount of time the employee must work with a company to be eligible for leave. Employers are required to reinstate the employee to their position or a similar position upon their return from the leave period if the employee has worked at the company for at least 180 days. Employees may also choose to use sick leave or other paid time off prior to accessing FAMLI benefits, but cannot be required to do so by their employer. An employer and an employee may agree in writing that the employee may use any accrued PTO or other employer-provided leave to supplement the FAMLI benefits.

California

Effective January 1, 2024, California's statewide paid sick leave law, the Healthy Workplaces, Healthy Families Act of 2014, has increased the minimum amount of paid sick leave that employers must provide to California employees to 40 hours of paid sick leave per year, up from 24 hours of leave per year as previously required. In addition, covered California employees must now be permitted to carry over a minimum of 40 hours of accrued, unused paid sick leave into the next year, and may limit the total number of hours that may ever accrue at no less than 80 hours at any given time. Alternatively, employers may frontload all 40 hours of paid sick leave to be available at the start of the year. To the extent that the requirements of the state paid sick leave law conflict with any local paid sick leave ordinances, employers should comply with the more generous law that is applicable to its operations.

New York

The 2024 premium rates and maximum employee contributions for New York's NY Paid Family Leave Law (NYPFL) went into effect on January 1, 2024, with increased maximum weekly benefits and reduced contributions made by employees. As most New York employers know, the NYPFL provides eligible employees with up to 12 weeks of partially paid leave in a 52-week period for covered reasons, which include care for a family member with a serious health condition; caring for a new child following birth, adoption, or placement; or reasons related to an employee's deployment on active military service.

Employees taking leave under the NYPFL receive 67% of their average weekly wage, up to a cap of 67% of the current New York State Average Weekly Wage (NYSAWW). In 2024, the maximum weekly benefit will be $1,151.16, which is $20.08 more than the maximum weekly benefit for 2023. Employees will be eligible for the new benefit rate for leaves that begin in 2024, while the 2023 benefit rate will still apply to leaves beginning in 2023 but extending into 2024. In 2024 employees will contribute 0.373% of their gross wages toward NYPFL benefits, up to a maximum annual contribution of $333.25, which is $66.18 less than in 2023.

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This client alert is intended to provide a high-level overview of some of the new leave laws and changes to existing leave laws that went into effect for 2024. We will continue to monitor developments in these areas. Employers are encouraged to stay apprised of all relevant state and local leave laws, and should consult with experienced employment counsel regarding the implementation of any new leave obligations. 

[1] The Act does not apply to, among others, independent contractors, temporary university or college student employees, and employees covered by a bona fide collective bargaining agreement entered into before January 1, 2024, unless otherwise provided within the collective bargaining agreement. After January 1, 2024, the Act will apply unless the CBA explicitly waives its requirements.