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Sick leave

Policy allowing paid time off from work for health needs

  • 15 min read
  • 4 chapters

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Through Employment, Health and Family

In most nations, some or all employers are required to pay their employees for some time away from work when they are ill. Most European, many Latin American, a few African, and a few Asian countries have legal requirements for paid sick leave for employees. In nations without laws mandating paid sick leave, some employers offer it voluntarily or as the result of a collective bargaining agreement. However, in countries with poorer labor laws such as South Korea, employees are usually forced to use paid vacation time for sick leaves, and the sick leaves exceeding the remaining vacation time are unpaid. Even where sick leave is normally required for all employees, the business owner may not be considered an employee or have access to paid sick leave, especially in a microbusiness that is operated by the owners.

The labor movement has historically and to the present fought for paid sick leave as a fundamental workers' rights. Private employers may often provide paid sick leave, even when not required to, in order to attract and retain qualified or scarce labor. The economic rationale for paid sick leave is that it reduces negative externalities, such as contagious people making others in the workplace sick, whereas the downside to paid sick leave is that it may encourage excessive absenteeism. Paid sick leave can reduce employee turnover, increase productivity, and reduce the spread of disease in the workplace and in the community.

Impact

Studies show that workers are less likely to take time off for injury or illness when they do not have paid sick leave. Workers without paid sick leave are also less likely to obtain preventive medical care, such as cancer screenings and flu shots. Workers with paid sick leave are less likely to experience workplace injuries. Paid sick leave can reduce the overall frequency of time off work, as workers are less likely to spread disease to co-workers and the surrounding community. Parents who have access to paid sick leave are more likely to take time away from work to care for their sick children. Working parents without paid sick days may feel compelled to send their sick children to school, where the children spread infections to other students and school staff, and additionally experience negative short- and long-term health outcomes themselves.

Workers without paid sick leave will go to work while sick, spreading the infections to other workers. Nearly seven in ten U.S. workers (68 percent) report they have gone to work with the stomach flu or other contagious disease. Nearly half reported that they went to work sick because they could not afford to lose the pay. Thirty percent of workers report they contracted the flu from a colleague. According to a 2020 study, requiring paid sick leave in Washington state led to a reduction in the number of workers who reported working while sick.

In 2010, a non-random survey of some New York City employers by the Partnership for New York City estimated that introducing a new paid sick leave mandate, in which employees of small businesses would get a minimum of five days paid sick leave per year and employees of large businesses would get a minimum of nine days paid sick leave per year, would increase total payroll expenses in the city by 0.3%, with the burden largely falling on the fraction of businesses that did not already pay for any sick leave, or that offered sick leave only to long-time employees. The total cost of providing paid sick leave in that high-cost market was estimated to be around 40 or 50 cents per hour worked.

Presenteeism costs the U.S. economy $180 billion annually in lost productivity. For employers, this costs an average of $255 per employee per year and exceeds the cost of absenteeism and medical and disability benefits. For workers in the foodservice industry, one analysis found that foodborne illness outbreak for a chain restaurant – including negative public opinion, which affects other operations in a metropolitan area – can be up to $7 million.

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