Three States Enact Paid Sick Leave Laws Set to Take Effect in 2025

In 2025, paid sick leave laws will expand as Alaska, Missouri, and Nebraska join the growing list of states with similar policies in place. Following the November 5, 2024 election, voter approval has prompted these three states to introduce new policies that reflect a broader shift toward providing workers with paid time off for health-related issues.

Understanding the key provisions of these mandates is crucial for companies and HR professionals as they navigate the evolving landscape of paid sick leave across the country. This post will provide an overview of the key provisions in each of these three states’ new mandates. Some related considerations—such as record-keeping and documentation procedures—are not covered here but also important for companies to recognize.

Alaska’s Paid Sick Leave Mandate

Reasons for Use: Paid sick leave can be used for (1) a worker’s own mental or physical illness, injury, health conditions including diagnosis of such; (2) care or assistance to a family member relating to their health; and (3) absence necessary due to domestic violence, stalking, or sexual assault.

Accrual rate: In Alaska, eligible workers will receive a minimum of one hour of paid sick leave for every 30 hours worked. There is an annual accrual cap of 40 hours for workers working for a company with less than 15 workers. Companies in the state with 15 or more workers have an accrual cap of 56 hours of paid sick leave.

Carryover rules: Any unused hours will be carried over to the next year. Companies are not required to allow a worker to exceed the applicable usage cap.

Frontloading: Alaska’s paid sick leave law does not address frontloading, so Companies should utilize the accrual method to provide the paid sick leave.

Effective date: Alaska’s paid sick leave requirements are set to go into effect on July 1, 2025.

Missouri’s Paid Sick Leave Mandate

Reasons for use: Paid sick leave can be used for (1) a worker’s own mental or physical illness, injury, health conditions including diagnosis of such; (2) care or assistance to a family member relating to their health; (3) closure of a worker’s place of business due to a public health emergency, need to care for a child whose place of care has been closed due to a public health emergency, or need to care for oneself or a family member when health authorities determine exposure to the individual is a health concern to the community; and (4) absence necessary due to domestic violence, stalking, or sexual assault.

Accrual rate: In Missouri, companies now must supply at least one hour of sick paid leave for every 30 hours an eligible worker works. Companies with fewer than 15 workers may limit a worker’s use of paid sick leave to 40 hours per year. Companies with 15 or more workers may limit a worker’s use of paid sick leave to 56 hours per year. There is no limit on how many hours a worker may accrue outside of these usage and carryover requirements.

Carryover rules: A maximum of 80 unused sick leave hours will carry over into the next year. Companies are not required to allow a worker to exceed the applicable usage cap.

Frontloading: Companies may provide the paid sick leave hours each worker is expected to earn over a year at the beginning of the year rather than allowing them to accrue overtime. If companies frontload paid sick leave, they must pay out unused hours at the end of the year instead of allowing them to carryover.

Effective date: Missouri’s paid sick leave requirements are set to go into effect on May 1, 2025.

Nebraska’s Paid Sick Leave Mandate

Reasons for use: Paid sick leave can be used for (1) a worker’s own mental or physical illness, injury, health conditions including diagnosis of such; (2) care or assistance to a family member relating to their health; (3) closure of a worker’s place of business due to a public health emergency, need to care for a child whose place of care has been closed due to a public health emergency, or need to care for oneself or a family member when health authorities determine exposure to the individual is a health concern to the community.

Accrual rate: In Nebraska, eligible workers must accrue at least one hour of earned paid sick leave for every 30 hours worked. Companies with less than 20 workers during a given week can cap annual accrual at 40 hours while larger companies can cap annual accrual at 56 hours.

Carryover rules: Any unused hours will be carried over to the next year without any designated carryover limitation.

Frontloading: Companies may provide the paid sick leave hours each worker is expected to earn over a year at the beginning of the year, though it is unclear whether doing so would permit avoiding accrual and carryover obligations at the end of the year.

Effective date: Nebraska’s paid sick leave requirements are set to go into effect on October 1, 2025.