Things to Consider with the Section 1 - Subdivision 8(a) Exemption:
An employee handbook would qualify as a policy or agreement so long as there is
language in the handbook about the paid leave policy and paid leave is provided that
meets or exceeds the requirements of SB 312.
Existing Notice Requirements, Call-Out-Policies, and/or Request for Leave
policies/provisions, etc., that are set forth in the contract, policy, handbook, collective
bargaining agreement, or agreement are still valid and can be enforced by the employer.
However, it is recommended that employers not adopt new policies, handbooks,
contracts, agreements, or collective bargaining agreements prior to January 1, 2020, that
would discourage and/or prevent the use of paid leave based on the intent of SB 312.
The employee should sign and acknowledge the policy, handbook, agreement, contract,
or other document specifying and outlining the paid leave policy, including those
provisions set forth in a collective bargaining agreement.
Existing contracts, policies, handbooks, collective bargaining agreements, or other
agreements that match or exceed the paid leave requirements of SB 312 but have a
waiting period to utilize the leave would still be exempt under Section 1 - Subdivision
8(a). However, it is recommended that employers recognize the intent of SB 312 to
have paid leave available after 90 days of employment.
Many employers already offer sick leave or other types of paid leave before 90 days of
employment or after 90 days of employment that match or exceed the requirements of
SB 312, and this would satisfy the intent of the exemption in Section 1 - Subdivision
8(a).
A “Benefit Year” means a 365-day period used by an employer when calculating the
accrual of paid leave,” and should be considered to start the day the employee starts
employment.
Leave can be “front-loaded” at the beginning of the Benefit Year or accrue over a Benefit
Year pursuant to a policy, handbook, agreement, contract, or collective bargaining
agreement, and does not have to be paid out unless that is part of the policy, handbook,
agreement, contract, or collective bargaining agreement.
Leave may be rolled over but can be limited to 40 hours per Benefit Year.
If leave is “paid out” pursuant to a policy, handbook, agreement, contract, or collective
bargaining agreement, it does not have to be reinstated.
Higher amounts of leave can always be offered to hourly employees, exempt, or salary
employees pursuant to a contract, handbook, policy, agreement, or collective bargaining
agreement.
The notice requirements for leave under the Family Medical and Leave Act (FMLA) and
the other requirements of FMLA would still be applicable to FMLA leave.
Collective Bargaining Agreements (CBA’s), mainly those involving trade, construction,
and labor organizations, that have been negotiated or are being negotiated that have
current and/or existing language that offer, or previously offered leave that matches or
exceeds the requirements of SB 312, but have been modified to provide for a vacation
bank/fund, savings plan, vacation plan/vacation savings plan, or other leave plan, or that
instead offer the leave to be paid as part of the collective bargaining agreement are
exempt from the new requirements of SB 312 based on the exemption in Section 1 –
Subdivision 8(a).
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