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On July 1, 2016, a change in sick leave law mandates that employers must provide employees with at least four days of sick time off annually, accruing at a rate of one day for every 30 hours worked. This change requires payroll and accounting adjustments to accommodate the new liability, which doesn't appear on the balance sheet, complicating tracking processes. Additionally, if an employer has a paid time off (PTO) policy instead of a vacation policy, it must offer greater than four days of PTO to comply. However, the challenge with PTO is that it must be paid out when an employee leaves the company.