Have employees in multiple states? Avoid a PTO quagmire by planning ahead.
Summary
Catherine Strauss (partner, Ice Miller) warns that the surge in state and local paid time off (PTO) and sick-leave laws, combined with more staff working from different states, has created a compliance maze for employers. The piece uses a simple hypothetical — an Ohio company with remote employees in Illinois and California — to illustrate the difficult choices: adopt a single generous policy, maintain multiple rules by location, or try something in between. Strauss outlines practical steps employers can take: map where employees live, chart applicable city/county/state rules, weigh frontloading versus accrual, consider carryover and payout requirements, and factor in administrative capacity and employee morale.
Key Points
- Track employee locations — city, county and state rules can all apply and often differ.
- Create a legal chart showing which jurisdiction’s rules are most employee-friendly and whether frontloading or accrual is required or permitted.
- Frontloading can simplify administration and allow limits on carryover; accrual adds recordkeeping complexity.
- Review carryover rules, annual caps, and whether unused accrued time must be paid at separation.
- Balance legal compliance with business needs and employee engagement — harmonising policies reduces confusion but can raise costs.
Content summary
The article explains why multistate PTO compliance has grown more complex: many jurisdictions now mandate leave rules while remote work means employees frequently live outside the employer’s home state. Using the ABC Company example, Strauss highlights common questions employers face (one policy vs multiple, accrual vs frontloading, administrative burden). She recommends starting with an inventory of employee locations, then mapping each location’s legal requirements with counsel. Practical considerations include the business’s peak periods, managerial capacity, the proportion of employees in regulated jurisdictions, and cost vs compliance risk. The author stresses fairness and non-discrimination when applying differing benefits across locations.
Context and relevance
With remote and hybrid working here to stay, more employers will have people subject to differing local leave laws. This matters for HR, payroll and legal teams because missteps can lead to fines, back pay obligations and employee dissatisfaction. The article sits at the intersection of compliance and people strategy — it’s about minimising legal risk while keeping the workforce treated fairly and the business operationally effective.
Why should I read this?
Look — if you’ve got staff scattered across states, this is the sort of quick, practical read that will stop you making an expensive mistake. It flags the obvious (track where people are), the less obvious (city rules can beat state rules) and gives a straightforward way to start (build a jurisdiction chart and talk to counsel). Saves you time and potential headaches — worth five minutes now to avoid months of back-pay nightmares later.