Worcester Business Journal

www.wbjournal.com June 22, 2015 • Worcester Business Journal 9 B rendan O'Connor, the owner of O'Connors Restaurant in Worcester, isn't upset that the state will make his business offer paid sick days to all employees starting July 1. It will mean higher costs that he'll have to pass on to customers, he said, but he doesn't take issue with the idea. "We voted for this as a state, we voted this in," he said. "I think if people get genuinely sick and they need coverage, I don't think there's a person in the world who would deny them." What bothers O'Connor, though, is that, just days before the new law takes effect, the state still hadn't issued final regulations defining exactly what it will require. The public comment period for the proposed regulations didn't expire until June 10, leaving a tiny window to get them released and let employers and their lawyers and payroll firms deter- mine how to deal with them. (Editor's note: Final regulations, which were sched- uled to be released last week, were not released as of press deadline.) "That's disturbing that they didn't plan it a little better," O'Connor said. The law, passed by voters last fall, calls for employers such as O'Connor's, with more than 10 employees, to let workers earn one hour of paid sick time for every 30 hours they work, up to 40 hours per calendar year. For the smallest compa- nies, the same guaranteed sick time is required, but it can be unpaid. Roy Nascimento, president and CEO of the North Central Massachusetts Chamber of Commerce, which is offer- ing workshops to help members adjust to the new law, said many small busi- nesses are frustrated at the lack of clarity about the final rules. "Employers want to do the right thing, obviously, and comply with the law, but they're having a hard time understand- ing how," he said. For small firms without a human resources director, it can be particularly difficult to adjust to new rules, Nascimento said. The law means adding new bookkeeping requirements in the middle of the year and, for some, adjust- ing existing paid-time-off policies that address vacation, personal and sick time but that may not meet all requirements. "It's a new mandate," he said. "It basi- cally means more red tape for the employer." Nascimento said some restaurants and retail establishments that tradition- ally encourage workers to trade shifts when necessary could see workers mis- using the law. Melissa Fetterhoff, president and CEO of the Nashoba Valley Chamber of Commerce, said she's hearing similar concerns from her members. At least one local business plans to get rid of paid holidays to avoid taking a loss on the new rules, she said. Vanessa H. Costa, a principal with Advantage Benefits in Worcester, said it's not unusual among the smaller busi- nesses the firm works with to find some that haven't provided paid sick days. "They're going to get hit hard with a law like this," she said. "It can be a big new expense for employers." Costa said the fact that there's been a lot of buzz around the new law makes it especially important for employers to implement it right. She said they should work with payroll firms, if they use them, to track how workers accrue time. Regardless of the difficulty in getting all questions answered in a timely fash- ion, companies need to make a good- faith effort to have a compliant policy in place by July 1, according to Mary G. Duncan of Worcester CPA firm Shepherd & Goldstein LLP. She said some of the things they should think about are whether they can apply a "safe harbor" provision to paid leave rules they already have in place, how they'll track sick leave use, and how they'll maintain records for three years and make them available to employees. Despite all the headaches involved in creating new policies, O'Connor said he doesn't see a reason to panic. He draws a parallel to the mandate that employers offer health insurance to their workers. "People thought the world would end when it came in, but guess what? We're still here," he said. n Will new sick-time law cause headaches? BY LIVIA GERSHON Special to the Worcester Business Journal WORCESTER ART MUSEUM THANK YOU BUSINESS PARTNERS D O N O R S $2,500+ J.J. Bafaro, Inc. Herbert E. Berg Florist, Inc. CCR Wealth Management, LLC Christie's Commerce Bank Country Bank Foley Incorporated Highland-March Office Business Centers Revelation Productions, Inc. Spectrum Health Systems, Inc. Waters Corporation Webster Five Worcester Magazine M E M B E R S $1,000+ AAFCPAs Avidia Bank Bartholomew & Company, Inc. Bay State Savings Bank BenefitsLab - Health Insurance Solutions Central One Federal Credit Union Columbia Tech Data Source, Inc. Davis Publications, Inc. Fiduciary Investment Advisors Floral Elegance Greenberg, Rosenblatt, Kull & Bitsoli, P.C. Mercier Electric Company, Inc. Merrill Lynch / The O'Brien Group Miles Press, Inc. Russell Morin Fine Catering J.S. Mortimer, Inc. New England Disposal Technologies, Inc. Mirick O'Connell Penta Communications, Inc. Pepper's Fine Catering Perfect Focus Eyecare Carol Seager Associates, Inc. Seder and Chandler, LLP Spencer Bank Sullivan Benefits Thomas J. Woods Insurance Agency, Inc. Worcester County Memorial Park F R I E N D S $500+ The Berry Group of Wells Fargo Advisors Burr Insurance Butler-Dearden Charlton Manor Rest Home Checkerboard Ltd. Coghlin Electrical Contractors Cryogenic Institute of New England, Inc. Cutler Capital Management George's Coney Island Leadership Transitions F.W. Madigan Company, Inc. Marr Oil Heat Co., Inc. Marsh Law, LLC MSW Financial Partners Northwood Insurance Agency, Inc. The Protector Group, a Marsh & McLennan Agency Company Quaker Special Risk Joffrey Smith Financial Group Sotheby's Struck Catering Sullivan, Garrity & Donnelly Insurance Agency, Inc. Sunshine Sign Company, Inc. Wings Over Worcester As of June 12, 2015 Together we make a difference for Worcester. Join us! Contact Karmen Bogdesic: 508.793.4326 / karmenbogdesic@worcesterart.org / worcesterart.org/business-partners WORCESTER ART MUSEUM / 55 Salisbury Street / Worcester, MA 01609 / 508.799.4406 $20,000+ Unum $10,000+ Fallon Health People's United Bank Saint-Gobain The TJX Foundation, Inc. United Bank Foundation Massachusetts S P O N S O R S $15,000+ Skinner Auctioneers $5,000+ Bowditch and Dewey, LLP Fletcher Tilton P.C. FLEXcon Company, Inc. Harvard Pilgrim Health Care Imperial Distributors, Inc. Interstate Specialty Products, Inc. National Grid Reliant Medical Group Tufts Health Plan Medicare Preferred UniBank Worcester Business Journal Employers await final regs before measure takes effect July 1 Mass. sick-time law Key provisions of the voter-approved referendum that will take effect July 1: n Those who work for employers with at least 11 employees can earn and use up to 40 hours of paid sick time per calendar year. n Those who work for smaller employers can earn and use up to 40 hours of unpaid sick time per calendar year. n Employees will earn one hour of sick time for every 30 hours worked, and would begin accruing them on the date of hire or July 1, whichever is later. n Employees can begin to use earned sick time 90 days after they're hired. Source: Mass. Secretary of State's office

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