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As of July 1, 2016, the federal government mandates that employers must provide at least four days of paid sick leave per year, accruing at one hour for every 30 hours worked. This requirement necessitates changes in payroll and accounting to manage this new liability, which is not recorded on the balance sheet, complicating tracking efforts. Additionally, if an employer has a paid time off (PTO) policy that exceeds the minimum sick leave, they are compliant, but PTO must be paid out when an employee leaves. This creates potential financial challenges and operational complexities for employers.