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Effective July 1, 2016, changes to sick leave laws require employers to provide at least four days of sick time off per year to employees, accruing one day for every 30 hours worked. This necessitates changes in payroll and accounting systems to manage this new liability, which does not appear on the balance sheet. Employers with a vacation policy can meet this requirement if it is structured as a paid time off (PTO) policy that exceeds the four-day minimum. However, a challenge arises since PTO must be paid out when an employee leaves, complicating financial management. The overall implementation presents significant administrative challenges for businesses.