Steptoe & Johnson

The proposed Ohio Healthy Families Act (OHFA) would require employers with 25 or more employees to provide 7 days of paid sick leave to full time employees and a pro-rata share to part time employees. This proposal is being presented to Ohio voters as a result of a petition backed in large part by the Service Employees International Union (SEIU). According to the latest polls, the bill has strong popular support. The proposal will be on the ballot in Ohio this November. The concept has been considered in West Virginia as well.

The language of the bill is controversial and ambiguous. For example:

• It applies to all employers with 25 or more employees, but it is silent as to whether those employees must work at the same facility or must even be located within the state of Ohio.

• The bill requires employers to provide paid sick time; however it is unclear how it impacts employers who offer paid time off "banks" and do not distinguish between vacation and sick time.

The bill also has some very onerous language. For example:

• Sick leave is to be granted in the smallest time keeping increment used by the employer. Thus, if you pay your hourly employees by the tenth of an hour, then sick leave is to be used and recorded in tenths of an hour.

• Employers are entitled to little or no notice of sick leave under this bill, and are unable to verify that the time off is in fact being used for sick leave. No documentation or certification shall be requested unless and until the employee has used three consecutive sick days. Lastly, sick leave time under this act cannot be counted under a no fault attendance policy or otherwise negatively impact an employee.

What is of particular concern to many employers and their counsel is a provision in the bill that prohibits employers from reducing or otherwise negatively changing other leave policies to compensate for the required sick leave once the OHFA goes into effect. Employers who want to change any existing leave policies must do so before the law goes into effect.

Ohioans will vote on this ballot initiative on November 4, 2008. If it passes, because of unique language contained in the initiative, you may not be able to modify your current leave policies to better accommodate this expansive leave proposal. Accordingly, it is strongly recommended that you review and modify your leave policies now so that you are prepared in November.

Obviously, the OHFA could reach far beyond just a revision of handbook policies and affect corporate budgets and the manner in which employees are scheduled for work. Therefore, it is important that plans and policies be reviewed now, and possible solutions identified, in anticipation of this significant change. Steptoe & Johnson will continue to monitor this important issue as it progresses. In the meantime, should you have any questions or concerns, please contact:

Tracy L. Turner at 614-458-9793 or Tracy.Turner@steptoe-johnson.com
Bradley K. Shafer at 304-231-0444 or Bradley.Shafer@steptoe-johnson.com