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On July 1, 2016, changes to sick leave laws require employers to provide at least four days of sick time off per employee per year, accruing at one day for every 30 hours worked. This necessitates modifications to payroll and accounting systems to track this new liability, which isn't reflected on balance sheets. If a company has a paid time off (PTO) policy exceeding the minimum sick leave requirement, it may be compliant; however, PTO must be paid out when an employee leaves, adding complexity to management practices. Overall, these changes can create significant administrative challenges for employers.
