Austin Paid Sick Leave

1. Austin Paid Sick Leave Kenneth Besserman and Olivia Chriss

2. Austin Paid Sick Leave HOW DID WE GET HERE? • Organizers: Democratic Socialists of America/Austin; Work Strong Austin; Worker Defense Project; NELP – National Employment Law Project • Stakeholder meetings • Working Groups: Business and Trade Associations; Chamber of Commerce; Individual businesses • The council meeting: 300 angry advocates vs 25 businesses

3. Austin Paid Sick Leave WHO IS COVERED? The ordinance applies to any “person, company, corporation, firm partnership, labor organization, non-profit organization or association that pays an employee to perform work for an employer and exercises control over the employee’s wages, hours and working conditions.” Which Employees Are Covered By The Ordinance? The ordinance covers any “individual who performs at least 80 hours of work for pay within the City of Austin in a calendar year for an employer, including work performed through the services of a temporary or employment agency.”

4. Austin Paid Sick Leave WHO IS EXEMPT? The ordinance does not apply to independent contractors or unpaid interns. The ordinance does not apply to (1) the United States; (2) a corporation wholly owned by the government of the United States; (3) the state or a state agency; or (4) a political subdivision of the state, or other agency that cannot legally be regulated by municipal ordinance.

5. Austin Paid Sick Leave HOW MUCH TIME IS MANDATED? • One (1) hour of earned sick time for every 30 hours worked for the employer. Earned sick time is available to an employee as soon as it is accrued. • It accrues only in 1 hour increments. • It does not affect employer policies which allow an employee to donate unused accrued sick time to another employee.

6. Advocacy WHAT ARE THE LIMITS? Employees of employers with 15 or fewer employees (including family members) can accrue up to 48 hours (6 days) of earned time in a calendar year. Employers with more than 15 employees must allow employees to accrue up to 64 hours (8 days) of earned sick time in a year. Both size employers must allow employees to carry over the full earned hours.

7. Austin Paid Sick Leave WHAT ABSENCES ARE COVERED? • The “employee’s physical or mental illness or injury, preventative health care or health condition”. • The “employee’s need to care for a family member’s physical or mental illness, preventative medical or health care, injury, or health condition”. • The “employee’s need to seek medical attention, seek relocation, obtain services of a victim services organization”, or to participate in legal or court ordered action related to an incident of victimization from domestic abuse, sexual assault, or stalking involving the employee or the employee’s family member”.

8. Austin Paid Sick Leave DEFINE A FAMILY MEMBER The term “family member” is defined as an employee’s spouse, child, parent, or any other individual related by blood, or whose close association with the employee is the equivalent of a family relationship”.

9. Austin Paid Sick Leave HOW DO I VERIFY USE? An employer may adopt reasonable verification procedures to establish than an employee’s request for more than 3 consecutive days is for a qualifying absence.

10. Austin Paid Sick Leave HOW TO CALCULATE PAY The employer shall pay earned sick time in an amount equal to what the employee would have earned if the employee had worked the schedule work time, exclusive of any overtime premium, tips, or commissions, but not less than the state minimum wage.

11. Austin Paid Sick Leave EMPLOYER PROHIBITIONS EMPLOYERS MAY NOT: • Require “a employee to find a replacement to cover the hours of sick time as a condition of using earned sick time”. • Erase accrued paid sick time upon “an employee’s transfer to a different facility, location, division, or job position”. • “Transfer, demote, discharge, suspend, reduce hours, or directly threaten these actions against an employee for requesting or using earned sick time, or for reporting a violation or participating in an administrative proceeding under “ the ordinance.

12. Austin Paid Sick Leave EMPLOYER RESPONSIBILITIES RECORD MANDATES: • Monthly must provide electronically or in writing to each employee a statement showing the amount of the employee’s available earned sick time. • An employer that provides an employee handbook to its employees must include therein a notice of employee rights and remedies under the ordinance. • Each employer must display a sign in a conspicuous place or places where employee notices are customarily posted, once the city provides signage on their website.

13. Austin Paid Sick Leave WHEN DOES ORDINANCE#2018 0215-049TAKE EFFECT? • October 1, 2018 for all employers with six (6) or more employees. • October 1, 2020 for employers who have had five (5) or few employees in the preceding 12 months.

14. Austin Paid Sick Leave ENFORCEMENT • The ordinance is enforced by the City of Austin Equal Employment Opportunity and Fair Housing Office (EEO/FHO) • Civil penalties for substantiated violations may be assessed up to $500 per violation. • The EEO/FHO may choose to offer an employer up to 10 business days to voluntarily comply with the ordinance before collecting a civil penalty. • Civil penalties will not be assessed for substantive ordinance violations until after June 1, 2019.

15. Austin Paid Sick Leave THE DEVIL IN THE DETAILS • A complaint alleging a violation of this ordinance must be filed with the EEO/FHO by or on behalf of an aggrieved employee within two (2) years from the date of the violation. • The City may subpoena information relevant to the investigation. Failure to comply with subpoena is a Class C misdemeanor.

16. Austin Paid Sick Leave UNINTENDED CONSEQUENCES • Reduced wages • Shift of benefits • PTO vs sick leave & vacation • Decreased optional offerings • Increase price of goods and services • Overall increase in cost of living

17. Austin Paid Sick Leave WHAT’S NEXT? • 2019 Legislative Session • Lawsuits • Push-back by business • Supporters want to expand: • More days per year • Tighter restrictions