UKS Update on Connecticut Paid Sick Leave, Fair Labor Standards Act, and Pregnant Workers Fairness Act
Connecticut Paid Sick Leave
On April 16, 2024, the House of Representatives voted to pass House Bill 5005 modifying the current law on CT Paid Sick Leave to provide more expansive and inclusive protections for nearly all employees across the state. The new law will become effective on January 1, 2025.
Over the next three years, the new law’s coverage will expand to virtually all private sector employers regardless of their size, industry, or non-profit status. Starting January 1, 2025, the new law will apply to employers with at least 25 employees. Starting January 1, 2026, the law will apply to employers with at least 11 employees. Finally, starting January 1, 2027, the law will apply to all employers, including tax-exempt 501(c)(3) institutions. The only recognized exemptions are for (1) employers that participate in a multiemployer health plan that is maintained pursuant to a collective bargaining agreement between a construction related union and employer, and (2) self-employed individuals.
The new law extends coverage to all employees, including both day and temporary workers, rather than only specified “service workers.” The only employees who are not covered by the new law are “seasonal employees” who work 120 days or fewer during a year.
Under the new law, accrual of paid sick time begins upon hire and accrues at a rate of one hour per 30 hours worked, up to a maximum of 40 hours per year. Employees may use accrued sick time on and after 120 calendar days of employment. There is no change to the current law that employees are entitled to carry over up to 40 hours of sick time from the current year to the following year.
The new law expands the reasons an employee may use sick leave to include:
- the employee’s or the employee’s family member’s illness, injury, or health condition;
- The medical diagnosis, care, or treatment of the employee’s or family member’s mental or physical illness, injury, or health condition;
- Preventive medical care for the employee’s or family member’s mental or physical health;
- The employee’s mental health wellness day
- For certain circumstances where the employee or family member is a victim of family violence or sexual assault, provided that the employee is not the alleged perpetrator
- Closure by order of a public official, due to a public health emergency, of either (a) an employer’s place of business or (b) a family member’s school or place of care;
- A determination by a health authority, employer of the employee, employer of a family member, or a healthcare provider that an employee or employee’s family member poses a risk to the health of others due to an exposure to a communicable illness, whether or not the employee or family member contracted the communicable illness.
The new law also broadens the definitions of several key terms. “Family members” for whom employees may use sick leave to care for, now includes “a spouse, sibling, child, grandparent, grandchild or parent of an employee or an individual related to the employee by blood or affinity whose close association to the employee shows to be equivalent to those family relationships.” Similarly, the definition of “spouse” is expanded to include “someone who is legally married to an employee under the laws of any state, or an employee’s domestic partner.”
Employers will be prohibited from requiring employees to look for or find a replacement to cover their hours while they take sick leave. The new law also prohibits employers from requiring documentation showing the specific reason for taking sick leave.
If an employer already offers at least 40 hours of paid time off per year in the form of vacation, personal days, or other leave, the employer is considered to be in compliance with the law and not required to offer additional leave.
Federal Labor Standards Act
On April 23, 2024, the Department of Labor (“DOL”) released a final rule that raises the salary thresholds for certain overtime exemptions under the federal Fair Labor Standards Act (“FLSA”), with an effective date of July 1, 2024. FLSA requires that most employees be paid a federal minimum wage and overtime at a rate of one and one-half times their regular pay for all time worked in excess of 40 hours in a workweek.
The final rule updates and revises the regulations issued under FLSA implementing the exemption from minimum wage and overtime pay requirements for executive, administrative, and professional (“EAP”) employees.[1] Revisions include increases to the standard salary level and the highly compensated employee total annual compensation threshold,[2] and a mechanism that updates the earnings thresholds to reflect current earnings data.
To fall within the EAP exemption, an employee generally must meet the following tests: (1) be paid a salary, meaning that they are paid a predetermined and fixed amount that is not subject to a reduction because of variations in the quality or quantity of work performed; (2) be paid at least a specified weekly salary level; and (3) primarily perform EAP duties.
The current threshold for EAP employees is $684 per week, which is equivalent to $35,568 per year. Beginning July 1, 2024, the threshold for EAP employees will increase to $844 per week, which annualizes to $43,888 per year. Starting on January 1, 2025, the threshold for EAP employees will be raised to $1,128 per week, which is approximately $58,656 per year. Beginning July 1, 2027, and every three years thereafter, the salary thresholds will automatically update, using the methodology in effect at the time of each update.
In response to the final rule, employers can either raise the salaries of affected employees to maintain the current exemption status or reclassify the positions to non-exempt, and pay their employees an hourly wage and overtime, as necessary.
Pregnant Workers Fairness Act
The Pregnant Workers Fairness Act (“PWFA”) went into effect on June 27, 2023. On April 15, 2024, the Equal Employment Opportunity Commission (“EEOC”) issued its final rule and interpretive guidance to carry out the law.[3] The final regulation will go into effect on June 18, 2024.
Under PWFA, covered employers are required to provide a “reasonable accommodation” to a qualified employee’s or applicant’s “known limitations”[4] related to, affected by, or arising out of pregnancy, childbirth, or related medical conditions,[5] unless the accommodation will cause an “undue hardship” on the operations of the employer.[6] Importantly, PWFA applies only to accommodations.[7]
PWFA applies to private employers and public sector employers (both state and local governments) that have at least 15 employees. The Act also applies to Congress and Federal agencies, and to employment agencies and labor organizations.
Under PWFA, a covered employer is prohibited from: (1) failing to make a reasonable accommodation for the known limitations of an employee or applicant, unless the accommodation would cause an undue hardship; (2) requiring an employee to accept an accommodation other than a reasonable accommodation arrived at through the interactive process; (3) denying employment opportunities to a qualified employee or applicant based on the person’s need for a reasonable accommodation; (4) requiring an employee to take leave if another effective reasonable accommodation exists; (5) taking adverse action against an employee or applicant for requesting or using a reasonable accommodation for a known limitation.
The final rule provides specific examples of reasonable accommodations under PWFA, including among other things: frequent breaks, schedule changes, part-time work, and paid/unpaid leave, and telework.
To request an accommodation under PWFA, the employee must first identify the limitation to their employer and then state that they need an adjustment or change at work due to their limitation. Once the employer is informed of the limitation, they should engage in the “interactive process” with the employee or applicant.[8] The employee does not need to use specific language when communicating to the employer[9] regarding the limitation and/or requesting a reasonable accommodation. This communication can be done at the same time and can be made to the same person.
PWFA does not limit the rights of individuals affected by pregnancy, childbirth, or related medical conditions under any Federal, State, or local law that provides greater or equal protection.
Christopher L. Brigham is a Shareholder at Updike, Kelly & Spellacy’s Hartford office and Chairman of the Employment Practices Group. He focuses his practice on representing and counseling businesses and educational institutions with respect to workplace employment and school law issues. He can be reached at cbrigham@uks.com or (203) 786-8310.
Valerie M. Ferdon is a Shareholder at the firm’s Hartford office and is a member of the Employment Practices Group and the Litigation Practice Group. She can be reached at vferdon@uks.com or (860) 548-2607.
Thank you to law clerk Gillian Wilson and summer associate Kira Burnham for their assistance with preparing this client alert.
[1] See 29 U.S.C. § 213(a)(1).
[2] Connecticut does not recognize a highly compensated employee exemption.
[3] See 42 U.S.C. 2000gg-3(a).
[4] “Limitations” include both physical and mental conditions.
[5] The EEOC gave the phrase “pregnancy, childbirth, or related medical conditions” the same meaning under the PWFA as under Title VII.
[6] “Undue hardship” is a term from the ADA, and the PWFA follows the definition in the ADA.
[7] Other laws that the EEOC enforces make it illegal to fire or otherwise discriminate against employees or applicants on the basis of pregnancy, childbirth, or related medical conditions. The U.S. Department of Labor also enforces certain laws such as FMLA and PUMP Act which provide additional pregnancy-related protections.
[8] The “interactive process” requires an employer and employee to communicate about the known limitation and the requested adjustment or change at work.
[9] This includes a supervisor, manager, or another appropriate official who has supervisory authority for the employee.