04 October 2019

Bernalillo County, New Mexico enacts paid sick leave ordinance that takes effect in 2020

Effective July 1, 2020, Bernalillo County, New Mexico employers of two or more employees required to apply for a county business registration must provide paid time off to most full-time, part-time, seasonal, and temporary basis employees that have worked a minimum of 56 hours in a year for the employer.

The ordinance covers business owners in the unincorporated areas of the county (the area outside the city limits of Albuquerque). Employers must allow employees to use accrued paid time off for any reason. (Ordinance No. 2019-17; news release.)

Beginning July 1, 2020, employers must allow employees to begin accruing paid time off at a rate of one hour for every 32 hours worked. The maximum number of hours employees may accrue is incrementally increased over a three-year period:

  • Effective July 1, 2020, employees must be allowed to accrue at least 24 hours of paid time off
  • Effective July 1, 2021, employees must be allowed to accrue at least 40 hours of paid time off
  • Effective July 1, 2022, employees must be allowed to accrue at least 56 hours of paid time off

New local businesses are exempt from the paid time-off requirement during the first 12 months of operation (as calculated from the date the new local business is issued its initial business registration permit with the county). College interns, family employees, per diem employees and certain other individuals are exempt from the ordinance.

Employers may require new employees to wait 90 days before beginning to accrue paid time off. Unused accrued paid time off must be carried over to the following year, but employees may not carry over more than the total annual amount available to accrue, unless the employer's policy provides otherwise. An employer that has a paid time-off policy that provides substantially the same protections and benefits as under the ordinance is exempt from the ordinance's requirements.

If an employee is transferred but remains employed by the same employer, a successor employer replaces the original employer, or an employee separates from employment but is rehired by the same employer within 12 months, the employer must reinstate all previously accrued and unused earned paid time off to the employee, up to a maximum of 56 hours, unless the employer chooses to provide more, or unless the successor employer chose to pay out the accrued paid time off upon transfer or separation.

Employers must, at the time of hiring, notify each employee:

  • Of the entitlement to earned paid time off, the amount of paid time off provided to employees and the terms under which earned paid time off may be used
  • How an employee may submit a request for, or notify an employer of the use of, paid time off, whether orally, in writing or electronically, and to whom
  • That retaliation by the employer against the employee for requesting or using paid time off for which the employee is eligible is prohibited
  • That the employee has a right to file a complaint with the county for any violation of the paid time-off ordinance

Employers may comply with the notice requirement by displaying a poster in a conspicuous place, accessible to employees, at the employer's place of business that contains the same information in both English and Spanish. The county will provide a model poster prior to the effective date of the ordinance and may adopt regulations to establish additional requirements concerning the ways employers should provide the employee notice.

Ernst & Young LLP insights

Bernalillo County joins other localities and states that are now requiring that employees be allowed to use their paid time off for any reason, not just personal sickness.

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Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Tax Services - Employment Tax Advisory Services
   • Kenneth Hausser (kenneth.hausser@ey.com)
   • Debera Salam (debera.salam@ey.com)
   • Kristie Lowery (kristie.lowery@ey.com)

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ATTACHMENT

EY Payroll News Flash

Document ID: 2019-1766