Sick Leave Policy: What Employers Need to Know in 2025

Sick leave isn't just a benefit, it's a competitive advantage in today’s workforce. From navigating state-mandated requirements to offering flexible, employee-friendly options, your sick leave policy can influence recruitment, retention, and even productivity. But staying compliant and practical in 2025 means employers need to think beyond the basics.

This guide covers what you need to know about sick leave laws, best practices for policy design, and how to make administration simple with the right technology.

Table of Contents

• What is Sick Leave & Why Does It Matter?
• Understanding Sick Leave Laws in 2025
• Key Elements of a Strong Sick Leave Policy
• Modern Sick Leave Policy Best Practices
• Tools to Streamline Sick Leave Management
• Supporting a Culture of Health

What is Sick Leave & Why Does It Matter?

Sick leave allows employees to take time off when they’re unwell, recovering from a medical issue, or caring for a sick family member. It can include everything from short-term flu recovery to mental health support or managing chronic conditions.

A thoughtful sick leave policy supports your team’s well-being and reduces the spread of illness at work. It also demonstrates a people-first culture, something that job seekers are actively looking for.

Understanding Sick Leave Laws in 2025

Paid sick leave requirements are not consistent across the U.S. Currently, 15 states and several cities mandate paid sick leave, including:

• California: Employees accrue 1 hour per 30 hours worked, with recent legislation increasing minimum requirements 

• New York: Employers with 5+ employees must provide paid sick leave.

• Massachusetts: Accrual and carryover limits are strictly enforced.

Some states also require:

• Family care allowances (sick time to care for spouses, children, or other relatives)

• Annual carryover minimums

• Frontloading of sick time at the start of the year

It's important to know whether your state has:

• A waiting period before sick leave can be used

• Special rules for small businesses

• Requirements around documentation and notification

Our HR Compliance Services can help you stay ahead of changing sick leave laws in your state and industry.

Key Elements of a Strong Sick Leave Policy

1. Accrual and Usage Rules

Decide whether your policy will follow an accrual model (e.g., 1 hour per 30 worked) or frontload hours at the start of the year. Be clear on:

• When employees can start using leave

• Whether unused sick leave rolls over

• If there are caps on accrual

2. Expanded Use Cases

While some companies stick to the basics, others go further to support employee wellness. Consider allowing sick leave for:

• Mental health days

• Preventive care

• Recovery from minor surgery

• Care for family members or household emergencies

You can also offer half-days, which help employees leave mid-shift without using a full day.

3. Remote Work During Illness

If an employee is mildly ill but still able to work remotely, your policy should outline those options. Remote flexibility can reduce disruption while supporting recovery.

4. Clear Communication

Outline:

• How to request sick leave

• Who to notify

• When documentation is required

Employees are more likely to use leave responsibly when the policy is easy to understand.

Modern Sick Leave Policy Best Practices

Be Flexible

Offer rollovers and allow leave to be used in small increments. Employees should feel comfortable using sick time when they need it, not hoarding it for emergencies.

Reduce Burnout

Offer extended sick leave or wellness days for long-tenured employees. Consider introducing sabbatical options as part of your benefits package.

Encourage Use

Remind employees to take time off when they’re sick, and ensure managers support this. Presenteeism (showing up sick) can lower morale and productivity across teams.

Automate Tracking

Manual sick leave tracking creates room for errors. A Time & Labor Management system can:

• Track accruals in real time

• Automate carryovers

• Integrate with payroll and scheduling

Tools to Streamline Sick Leave Management

With the right workforce management tools, you can take the guesswork out of sick leave policies. At Excelforce, our unified platform includes:

• Advanced Scheduler to cover shifts during absences

• HR Software for custom policies and documentation workflows

• Benefits administration to support wellness and healthcare needs

• Recruitment tools that highlight your employee-first culture

Supporting a Culture of Health

In 2025, businesses that want to lead on culture must treat health-related leave as essential. A good policy balances structure with compassion. When employees feel supported, they’re more likely to stay engaged, productive, and loyal.

If you're reworking your time-off policies, you might also like:

• How to Plan Employee Raises: A 2025 Guide for Employers

• How to Automate Payroll: The Ultimate Step-by-Step Guide

• How to Reduce Employee Turnover in Healthcare Organizations

Ready to simplify leave management? Learn how Excelforce can support your workforce with our user-friendly tools.

©2025 - Content on this blog is intended to provide helpful, general information. Because laws and regulations evolve, please consult an HR professional or legal expert for guidance specific to your situation.