Mandated Sick Leave Laws: Philadelphia, New Jersey, and New York City

Paid sick leave laws are designed to protect employees who need time off to care for themselves or a loved one, without putting their jobs or income at risk. For employers, keeping up with these requirements can be confusing, especially since the rules vary by city and state.

If your business operates in or around the Mid-Atlantic region, here is what you need to know about mandated sick leave in Philadelphia, New Jersey, and New York City.

Philadelphia, PA: The Promoting Healthy Families and Workplaces Ordinance

Philadelphia’s Promoting Healthy Families and Workplaces Ordinance (PHFWO) has been in effect since 2015 and applies to all employers with 10 or more employees in the city.

Key requirements:

• Accrual rate: 1 hour of sick time for every 40 hours worked
  
  
• Annual cap: 40 hours per year
  
  
• Small employers (fewer than 10 employees): Must provide the same time, but it can be unpaid
  
  
• Eligibility: Begins after 90 days of employment
  
  
• Covered reasons:
  
  
  • Personal or family illness, injury, or preventive care
  • Closure of workplace or school due to a public health emergency
  • Absences related to domestic violence, sexual assault, or stalking (“safe time”)
    
    
• Carryover: Up to 40 hours may carry over each year unless hours are front-loaded
  
  
• Documentation: May be required for absences of three or more consecutive days
  
  

Because Pennsylvania has no statewide sick leave law, Philadelphia’s ordinance (and a similar rule in Allegheny County) sets the standard for local compliance. Employers must also post a notice of employee rights and include the policy in handbooks.

New Jersey: A Statewide Paid Sick Leave Standard

The New Jersey Paid Sick Leave Act, effective since 2018, covers nearly every employer in the state, making it one of the most comprehensive in the nation.

Key requirements:

• Accrual rate: 1 hour for every 30 hours worked
  
  
• Annual cap: 40 hours per year
  
  
• Frontloading: Employers can grant all 40 hours at the start of the benefit year
  
  
• Eligibility: After 120 days of employment
  
  
• Covered reasons:
  
  
  • Care for self or family member
  • Domestic or sexual violence recovery
  • School closures or public health emergencies
  • School conferences or meetings related to a child’s health or education
    
    
• Carryover: Up to 40 hours, though employers can cap usage at 40 annually
  
  
• Documentation: Permitted for absences of three or more consecutive days
  
  

The law preempts local ordinances, meaning all municipalities follow the same statewide standard. New Jersey’s definition of “family member” is broad and includes anyone whose close relationship is equivalent to family.

Employers must provide written notice of employee rights and keep records for at least five years. Violations can result in fines and penalties from the New Jersey Department of Labor and Workforce Development.

New York City: The Earned Safe and Sick Time Act (ESSTA)

New York City’s Earned Safe and Sick Time Act (ESSTA), first enacted in 2014 and amended in 2021, aligns with New York State law but maintains its own enforcement and notice requirements.

Key requirements:

• Accrual rate: 1 hour for every 30 hours worked
  
  
• Annual cap:
  
  
  • 0–4 employees, net income under $1 million: 40 hours unpaid
  • 0–4 employees, net income over $1 million: 40 hours paid
  • 5–99 employees: 40 hours paid
  • 100 or more employees: 56 hours paid
    
    
• Eligibility: After 120 days of employment
  
  
• Covered reasons:
  
  
  • Illness, injury, or preventive care for self or family
  • Public health emergency closures
  • Safe time related to domestic violence, sexual assault, stalking, or human trafficking
    
    
• Carryover: Unused hours roll over, but annual use may be capped at 40 or 56 hours
  
  
• Documentation: Allowed for absences of three or more consecutive days
  
  

Employers must distribute a written notice of rights at hire, post it in the workplace, and maintain records for at least three years. The law covers part-time and remote employees who work at least 80 hours per year in New York City.

Why This Matters for Multi-State Employers

If your business operates across Pennsylvania, New Jersey, and New York, you need to apply the most generous standard among your covered employees or implement location-specific sick leave policies that meet each jurisdiction’s requirements.

Even within the same metro area, the differences are significant:

• A New Jersey employee may earn sick leave faster (1 hour per 30 hours worked) than one in Philadelphia.
  
  
• A large employer in New York City must provide up to 56 hours of paid time off annually, more than other areas.
  
  
• Local enforcement agencies in Philadelphia and New York City can issue penalties for failing to post notices or track accruals correctly.
  
  

Understanding and maintaining compliance across jurisdictions helps you avoid costly administrative mistakes and potential penalties.

Simplify Compliance with Expert Payroll Support

Tracking sick leave accruals, eligibility, and posting requirements can become complicated, especially if you manage employees in multiple states.

Exact Payroll’s integrated HR and payroll solutions can help you:

• Automate sick leave accrual and carryover tracking
• Maintain compliance with local and state laws
• Generate reports for recordkeeping and audits
• Provide required notices and employee documentation
  
  

Contact our team to simplify compliance and ensure your business meets all local requirements, while also supporting your employees’ well-being.