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As of July 1, 2016, new sick leave laws require employers to provide a minimum of four days per year of sick time off to employees, accruing at one day for every 30 hours worked. This change necessitates adjustments to payroll and accounting systems to track this new liability, which does not appear on the balance sheet. If an employer has a vacation policy, it can meet this requirement as long as it qualifies as a paid time off (PTO) policy and exceeds the minimum sick time provided. However, the challenge arises as PTO must be paid out when an employee leaves, complicating the overall management of employee leave benefits.