UNOFFICIAL COPY 25 RS BR 1077 Page 1 of 7 XXXX 1/4/2025 5:51 PM Jacketed AN ACT relating to earned paid sick leave. 1 Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2 SECTION 1. A NEW SECTION OF KRS CHAPTER 337 IS CREATED TO 3 READ AS FOLLOWS: 4 (1) As used in this section: 5 (a) "Child" means a biological, adopted, or foster child, stepchild, or legal 6 ward of an employee if the child is less than eighteen (18) years old, or is 7 over eighteen (18) years old but incapable of self-care due to a mental or 8 physical disability; 9 (b) "Earned paid sick leave" means the time off from work that is provided by 10 an employer to an employee as computed under this section that can be used 11 for purposes set forth in this section and is compensated at the same hourly 12 rate as the employee earns from his or her employment at the time the 13 employee uses the paid sick leave; however, the hourly rate shall not be less 14 than the minimum hourly wage under KRS 337.275; 15 (c) "Employee" has the same meaning as in KRS 337.010(1)(e); 16 (d) "Employer" has the same meaning as in KRS 337.010(1)(d); 17 (e) "Health care provider" means any person licensed under federal or state 18 law to provide health care services, or any other person authorized to 19 provide health care by a licensed health care professional, including but not 20 limited to physicians, osteopaths, nurses, advanced practice registered 21 nurses, physician assistants, and psychologists; 22 (f) "Parent" means a biological, adoptive, or foster parent of an employee or 23 an employee's spouse, or other person who assumed the responsibilities of 24 parenthood when the employee or the employee's spouse was a child; and 25 (g) "Spouse" means the person to whom an employee is married. 26 (2) Each employer shall provide earned paid sick leave to each employee working for 27 UNOFFICIAL COPY 25 RS BR 1077 Page 2 of 7 XXXX 1/4/2025 5:51 PM Jacketed the employer in the state. An employee shall begin accruing earned paid sick 1 leave beginning on his or her date of hire or on the effective date of this Act, 2 whichever is later, but employees shall not be entitled to use accrued earned sick 3 leave until the ninetieth calendar day following commencement of employment. 4 For every thirty (30) hours worked, the employee shall accrue one (1) hour of 5 earned paid sick leave. An employee exempt from overtime requirements under 6 state or federal law shall be assumed to work forty (40) hours each week unless 7 his or her normal work week is less than forty (40) hours, in which case earned 8 paid sick leave shall accrue based on that normal work week. 9 (3) The employer shall not be required to permit the employee to accrue at any one 10 (1) time, or carry forward from one (1) year to the next, more than forty (40) 11 hours of earned paid sick leave if the employer has less than ten (10) employees 12 or more than seventy-two (72) hours of earned paid sick leave if the employer has 13 ten (10) or more employees. 14 (4) An employer is considered to be in compliance with this section if the employer 15 offers any other fully paid leave that may be used for the purposes set forth in this 16 section in the manner provided for in this section and is accrued at a rate equal to 17 or greater than the rate described in this section. Nothing in this section shall be 18 construed to discourage or prohibit any employer from allowing the accrual of 19 earned paid sick leave at a faster rate, or the use of earned paid sick leave at an 20 earlier date, than this section requires. 21 (5) An employer shall permit an employee to use accrued earned paid sick leave 22 pursuant to this section for any of the following: 23 (a) Time needed for the diagnosis, care, or medical treatment of, or recovery 24 from, an employee's mental or physical illness, injury, or other health 25 condition; 26 (b) Time needed for the diagnosis, care, or medical treatment of, or recovery 27 UNOFFICIAL COPY 25 RS BR 1077 Page 3 of 7 XXXX 1/4/2025 5:51 PM Jacketed from, a mental or physical illness, injury, or other health condition of the 1 employee's child, parent, or spouse; and 2 (c) Time needed due to circumstances resulting from the employee or the 3 employee's child, parent, or spouse being a victim of domestic violence, so 4 long as the leave is to allow the victim to: 5 1. Obtain medical attention needed to recover from physical or mental 6 injury or disability caused by the domestic violence; 7 2. Obtain services from a victim services organization; 8 3. Relocate due to domestic violence or sexual assault; 9 4. Obtain a restraining or protective order; or 10 5. Participate in any civil or criminal proceedings related to the domestic 11 violence. 12 (6) If the employee's need to use earned paid sick leave is foreseeable, the employer 13 may require advance notice, not to exceed seven (7) days prior to the date such 14 leave is to begin, of the intention to use earned paid sick leave and the expected 15 duration of the leave. The employee shall make a reasonable effort to schedule 16 the use of earned paid sick leave in a manner that does not unduly disrupt the 17 operations of the employer. 18 (7) If the employee's need to use earned paid sick leave is not foreseeable, an 19 employer may require an employee to give notice of the intention to use earned 20 paid sick leave as soon as practicable. For earned paid sick leave of more than 21 three (3) days, an employer may require reasonable documentation that the leave 22 is being used for a purpose permitted under this section. If the leave is used 23 pursuant to subsection (5)(a) or (b) of this section, documentation signed by a 24 health care provider who is treating the employee or the employee's child, parent, 25 or spouse indicating the need for the leave and the anticipated necessary number 26 of days of leave shall be considered reasonable documentation. If the leave is 27 UNOFFICIAL COPY 25 RS BR 1077 Page 4 of 7 XXXX 1/4/2025 5:51 PM Jacketed used pursuant to subsection (5)(c) of this section, a court record, a law 1 enforcement report, or documentation signed by an attorney, police officer, 2 counselor, or representative of a victim services organization shall be considered 3 reasonable documentation. 4 (8) Unless an employee policy or collective bargaining agreement provides for the 5 payment of unused accrued earned paid sick leave benefits upon termination, an 6 employee shall not be entitled to payment of unused accrued earned paid sick 7 leave benefits upon termination of employment. 8 (9) Nothing in this section shall be deemed to require any employer to provide earned 9 paid sick leave for an employee's leave for any purpose other than those 10 described in this section. 11 (10) An employer shall not: 12 (a) Retaliate against an employee because the employee requests or uses earned 13 paid sick leave in accordance with this section or the employer's own earned 14 paid sick leave policy, or files a complaint alleging the employer's violation 15 of this section; or 16 (b) Count earned paid sick leave as an absence that may result in disciplinary 17 action against the employee. 18 (11) Each employer subject to this section shall, at the time of hiring, provide notice to 19 each employee of the entitlement to earned paid sick leave, the amount of earned 20 paid sick leave provided, and the terms under which earned paid sick leave may 21 be used. 22 (12) Nothing in this section shall be construed to prohibit an employer from: 23 (a) Taking disciplinary action against an employee who used earned paid sick 24 leave for purposes other than those described in this section; or 25 (b) Adopting a policy whereby an employee may donate unused accrued earned 26 paid sick leave to another employee. 27 UNOFFICIAL COPY 25 RS BR 1077 Page 5 of 7 XXXX 1/4/2025 5:51 PM Jacketed (13) (a) An employee shall not be required to use earned paid sick leave for any 1 absence during a period of time in which, by mutual consent of the 2 employee and the employer, the employee works an equivalent number of 3 additional hours during the same or the next pay period as the hours not 4 worked due to reasons permitted in this section. 5 (b) An employer shall not require an employee to work additional hours to 6 make up hours in which the employee was absent or require the employee to 7 find a replacement employee to cover hours during which the employee is 8 using earned paid sick leave. 9 Section 2. KRS 337.990 is amended to read as follows: 10 The following civil penalties shall be imposed by the Education and Labor Cabinet, in 11 accordance with the provisions in KRS 336.985, for violations of the provisions of this 12 chapter: 13 (1) Any firm, individual, partnership, or corporation that violates KRS 337.020 shall be 14 assessed a civil penalty of not less than one hundred dollars ($100) nor more than 15 one thousand dollars ($1,000) for each offense. Each failure to pay an employee the 16 wages when due him or her under KRS 337.020 shall constitute a separate 17 offense;[.] 18 (2) Any employer who violates KRS 337.050 shall be assessed a civil penalty of not 19 less than one hundred dollars ($100) nor more than one thousand dollars 20 ($1,000);[.] 21 (3) Any employer who violates KRS 337.055 shall be assessed a civil penalty of not 22 less than one hundred dollars ($100) nor more than one thousand dollars ($1,000) 23 for each offense and shall make full payment to the employee by reason of the 24 violation. Each failure to pay an employee the wages as required by KRS 337.055 25 shall constitute a separate offense;[.] 26 (4) Any employer who violates KRS 337.060 shall be assessed a civil penalty of not 27 UNOFFICIAL COPY 25 RS BR 1077 Page 6 of 7 XXXX 1/4/2025 5:51 PM Jacketed less than one hundred dollars ($100) nor more than one thousand dollars ($1,000) 1 and shall also be liable to the affected employee for the amount withheld, plus 2 interest at the rate of ten percent (10%) per annum;[.] 3 (5) Any employer who violates the provisions of KRS 337.065 shall be assessed a civil 4 penalty of not less than one hundred dollars ($100) nor more than one thousand 5 dollars ($1,000) for each offense and shall make full payment to the employee by 6 reason of the violation;[.] 7 (6) Any person who fails to comply with KRS 337.070 shall be assessed a civil penalty 8 of not less than one hundred dollars ($100) nor more than one thousand dollars 9 ($1,000) for each offense and each day that the failure continues shall be deemed a 10 separate offense;[.] 11 (7) Any employer who violates any provision of KRS 337.275 to 337.325, KRS 12 337.345, and KRS 337.385 to 337.405, or willfully hinders or delays the 13 commissioner or the commissioner's authorized representative in the performance 14 of his or her duties under KRS 337.295, or fails to keep and preserve any records as 15 required under KRS 337.320 and 337.325, or falsifies any record, or refuses to 16 make any record or transcription thereof accessible to the commissioner or the 17 commissioner's authorized representative shall be assessed a civil penalty of not 18 less than one hundred dollars ($100) nor more than one thousand dollars ($1,000). 19 A civil penalty of not less than one thousand dollars ($1,000) shall be assessed for 20 any subsequent violation of KRS 337.285(4) to (9) and each day the employer 21 violates KRS 337.285(4) to (9) shall constitute a separate offense and penalty;[.] 22 (8) Any employer who pays or agrees to pay wages at a rate less than the rate 23 applicable under KRS 337.275 and 337.285, or any wage order issued pursuant 24 thereto shall be assessed a civil penalty of not less than one hundred dollars ($100) 25 nor more than one thousand dollars ($1,000);[.] 26 (9) Any employer who discharges or in any other manner discriminates against any 27 UNOFFICIAL COPY 25 RS BR 1077 Page 7 of 7 XXXX 1/4/2025 5:51 PM Jacketed employee because the employee has made any complaint to his or her employer, to 1 the commissioner, or to the commissioner's authorized representative that he or she 2 has not been paid wages in accordance with KRS 337.275 and 337.285 or 3 regulations issued thereunder, or because the employee has caused to be instituted 4 or is about to cause to be instituted any proceeding under or related to KRS 5 337.385, or because the employee has testified or is about to testify in any such 6 proceeding, shall be deemed in violation of KRS 337.275 to 337.325, KRS 337.345, 7 and KRS 337.385 to 337.405 and shall be assessed a civil penalty of not less than 8 one hundred dollars ($100) nor more than one thousand dollars ($1,000);[.] 9 (10) Any employer who violates KRS 337.365 shall be assessed a civil penalty of not 10 less than one hundred dollars ($100) nor more than one thousand dollars 11 ($1,000);[.] 12 (11) A person shall be assessed a civil penalty of not less than one hundred dollars 13 ($100) nor more than one thousand dollars ($1,000) when that person discharges or 14 in any other manner discriminates against an employee because the employee has: 15 (a) Made any complaint to his or her employer, the commissioner, or any other 16 person; or 17 (b) Instituted, or caused to be instituted, any proceeding under or related to KRS 18 337.420 to 337.433; or 19 (c) Testified, or is about to testify, in any such proceedings; and 20 (12) Any employer who violates Section 1 of this Act shall be assessed a civil penalty 21 of not less than five hundred dollars ($500) for each offense. Each day of 22 violation shall constitute a separate offense, and the violation as it affects each 23 individual employee shall constitute a separate offense. The Attorney General, or 24 any person authorized to act on his or her behalf, shall initiate enforcement of 25 this penalty. 26