By StartBusinessByStatePublisher: Robert SmithResearch process
Original research · LegiScan + state DOL / statute cites · As of September 18, 2026 · Distinct from tip-credit by state and Florida minimum-wage business costs · Not legal advice
How many employees before which paid / earned sick leave rules apply? After the 2025–2026 wave, Michigan now splits annual use caps at 10 or fewer (40 hours) vs 11+ (72 hours); Missouri repealed its Prop A sick-leave mandate effective August 28, 2025; Connecticut, Nebraska, and Alaska added or expanded size-gated coverage; and Pennsylvania statewide bills remain pending. Local city overlays still exist in many places — this page tracks statewide employer-size thresholds.
Key findings
- Michigan HB 4002 (PA 2’25) — approved 2025-02-21, assigned PA on 2025-02-25. Amends the Earned Sick Time Act: small businesses (10 or fewer) may cap annual use at 40 hours; employers with 11+ may cap at 72 hours. Accrual remains 1 hour per 30 hours worked. Large-employer timing tracks the February 2025 effective window; small-business accrual/frontload tracking obligations were delayed until 2025-10-01 (MCL 408.963).
- Missouri HB 567 — signed 2025-07-10. Repealed Prop A earned paid sick-time sections (including RSMo § 290.600) effective 2025-08-28. Missouri DOL FAQ: employers are no longer required to provide earned paid sick time beginning Aug. 28, 2025 (voluntary policies OK). Treat enrolled law + DOL — not campaign copy — as controlling.
- Other 2025–2026 size moves — Alaska Ballot Measure 1 (~July 2025) and Nebraska Initiative 436 (Oct. 1, 2025) added size-tiered statewide PSL; Connecticut’s expansion reaches 11+ employees on 2026-01-01 (and 1+ on 2027-01-01).
- Pennsylvania — HB 899 (2025) introduced / referred to Labor & Industry; HB 2548 (2024) did not become law. Proposed ≠ law. Philly/Pittsburgh local leave rules may still apply.
- Service employers (cleaning, salon, daycare, landscaping, food truck): headcount definitions often count part-time, temporary, and staffing-agency workers — verify the statute before assuming your “8 W-2s” count.
Distinct from: our tip-credit / tipped cash-wage map (wage offsets, not leave) and Florida $15 minimum-wage payroll scenarios. For other labor legislation trackers, see workers’ comp who-must-carry bills and sales tax on services bills.
Where employer size changes the leave rule
Michigan worked example (illustrative)
For a Michigan daycare, add Michigan daycare insurance to the staffing budget alongside wages and paid leave. Our daycare staffing guide helps organize the roles, checks and training needed before opening.
Scenario (illustrative, not advice): A Michigan cleaning / salon / daycare operator comparing 8 W-2 employees vs 12 W-2 employees under the Earned Sick Time Act as amended by PA 2 of 2025.
- 8 employees — generally treated as a small business (10 or fewer) if the statutory counting rules are met → employer may limit annual use to 40 hours per employee; accrual still 1:30 (or frontload ≥40). Small-biz accrual/frontload tracking delay ran through 2025-10-01.
- 12 employees — 11+ tier → employer may limit annual use to 72 hours; same 1:30 accrual (or frontload ≥72). Large-employer obligations tracked the February 2025 effective window.
Counting traps: temps and staffing-agency workers often count; an employer that had more than 10 on payroll in 20+ weeks in the current or prior year is not a small business even if a given week shows ≤10. Confirm MCL 408.962 definitions and LEO/Wage & Hour guidance for your facts.
Statewide thresholds, caps, and accrual
Rows below are states (plus D.C.) with a statewide paid sick / earned leave statute in the CRS March 2026 compilation, plus Missouri (repealed) and Pennsylvania (pending watch). Gray-map states are omitted from the HTML table but appear as none in the CSV.
| State | Employer-size threshold(s) | Annual use cap (typical) | Accrual rate | Law type | 2025–2026 wave note | Cite |
|---|---|---|---|---|---|---|
| Alaska AK |
<15 vs 15+ | 40 (<15); 56 (15+) | 1 hour / 30 hours worked | paid sick | Ballot Measure 1 — statewide PSL eff. ~2025-07-01 | AS (Ballot Measure 1 / CRS Mar 2026) |
| Arizona AZ |
<15 vs 15+ | 24 (<15); 40 (15+) | 1 hour / 30 hours worked | paid sick | — | A.R.S. § 23-371 et seq. |
| Connecticut CT |
11+ (2026); expands to 1+ on 2027-01-01 | 40 | 1 hour / 30 hours worked | paid sick | PA 24-8 expansion: 25+ (2025) → 11+ (2026) → 1+ (2027) | CGS §§ 31-57r–31-57w; CT DOL PSL FAQ |
| District of Columbia DC |
<25 / 25–99 / 100+ | 3 / 5 / 7 days (tiered) | 1:87 / 1:43 / 1:37 (by size) | paid sick | — | D.C. Code § 32-531.01 et seq. |
| Maine ME |
10+ (below: no mandate) | 40 | 1 hour / 40 hours worked | earned paid leave any reason | — | 26 M.R.S. § 637 |
| Maryland MD |
15+ paid; <15 unpaid | 40 | 1 hour / 30 hours worked | paid sick | — | Md. Code, Lab. & Empl. § 3-1301 et seq. |
| Massachusetts MA |
11+ paid; <11 unpaid | 40 | 1 hour / 30 hours worked | paid sick | — | M.G.L. c. 149 § 148C |
| Michigan MI |
≤10 small-biz (40-hr use); 11+ (72-hr use) | 40 (≤10); 72 (11+) | 1 hour / 30 hours worked | paid sick | HB 4002 / PA 2'25 (approved 2025-02-21; assigned PA 2025-02-25). Large-employer timing ~2025-02-21; small-biz accrual obligations delayed until 2025-10-01. | MCL 408.962–408.963 (as amended by 2025 PA 2) |
| Nebraska NE |
11–19 vs 20+ (below 11: no mandate) | 40 (11–19); 56 (20+) | 1 hour / 30 hours worked | paid sick | Initiative 436 — eff. 2025-10-01 | Neb. Initiative 436 / CRS Mar 2026 |
| Nevada NV |
50+ (below: no mandate) | 40 | ~1 hour / 52 hours worked (0.01923/hr) | earned paid leave any reason | — | NRS 608.0197 |
| New York NY |
<5 (income-gated) / 5–99 / 100+ | 40 (<100); 56 (100+); unpaid possible if <5 & ≤$1M net income | 1 hour / 30 hours worked | paid sick | — | N.Y. Labor Law § 196-b |
| Oregon OR |
10+ paid (6+ if operating in city >500k pop.); smaller unpaid | 40 | 1 hour / 30 hours worked | paid sick | — | ORS 653.601 et seq. |
| Rhode Island RI |
18+ paid; <18 unpaid | 40 | 1 hour / 35 hours worked or paid | paid sick | — | R.I. Gen. Laws § 28-57-1 et seq. |
| California CA |
All employers (no small-employer unpaid tier) | ≥40 use (5 days); accrual bank up to 80 | 1 hour / 30 hours worked | paid sick | SB 616 (2023) expanded leave; still in force 2026 | Lab. Code § 246 et seq. |
| Colorado CO |
All employers | 48 | 1 hour / 30 hours worked | paid sick | — | C.R.S. § 8-13.3-401 et seq. |
| Illinois IL |
All employers | 40 | 1 hour / 40 hours worked | earned paid leave any reason | — | 820 ILCS 192/ |
| Minnesota MN |
All employers | 48 | 1 hour / 30 hours worked | paid sick | Statewide Earned Sick and Safe Time in force (2024+) | Minn. Stat. § 181.9445 et seq. |
| New Jersey NJ |
All employers | 40 | 1 hour / 30 hours worked | paid sick | — | N.J.S.A. 34:11D-1 et seq. |
| New Mexico NM |
All employers | 64 | 1 hour / 30 hours worked | paid sick | — | NMSA 1978 § 50-17-1 et seq. |
| Vermont VT |
All employers | 40 | 1 hour / 52 hours worked | paid sick | — | 21 V.S.A. § 481 et seq. |
| Washington WA |
All employers | No statutory annual use cap (carryover may be limited to 40) | 1 hour / 40 hours worked | paid sick | — | RCW 49.46.210 |
| Missouri MO |
n/a — repealed | n/a | n/a | repealed | Prop A created statewide PSL; HB 567 (signed 2025-07-10) repealed §§ 290.600 et seq. effective 2025-08-28. MO DOL: employers no longer required to provide earned paid sick time beginning Aug. 28, 2025 (may continue voluntarily). | RSMo § 290.600 (Repealed L. 2025 H.B. 567); MO DOL FAQ |
| Pennsylvania PA |
n/a | n/a | n/a | pending watch | HB 899 (2025) Introduced — referred Labor & Industry 2025-03-13 (LegiScan). HB 2548 (2024) laid on table — not enacted. Proposed ≠ law. Local Philly/Pittsburgh overlays exist. | LegiScan PA HB899 / HB2548 |
2025–2026 bill anchors (verified)
- MI HB 4002 — LegiScan status Passed (status_date 2025-02-25); PA 2’25 with immediate effect; bill_id 1909085. LegiScan · MCL 408.963
- MO HB 567 — LegiScan status Passed (status_date 2025-07-10); repeal of earned sick-time chapter effective 2025-08-28; bill_id 1896878. LegiScan · MO DOL FAQ · RSMo 290.600 repealed
- PA HB 899 — Introduced 2025-03-13; referred to Labor & Industry; not law. LegiScan
- PA HB 2548 (2024) — Laid on the table; not enacted.
Downloads
- CSV — all 50 states + D.C. (thresholds, caps, accrual, wave notes)
- Map (PNG)
- Size-tier caps chart (PNG)
Suggested citation: StartBusinessByState.com — Paid Sick Leave Employer-Size Thresholds by State (After the 2025–2026 Wave). https://startbusinessbystate.com/paid-sick-leave-employer-size-thresholds-by-state/. Please credit and link to this page when using our compilation or analysis, and retain the original-source credits and applicable reuse terms.
Methods, fences, and limits
- Not legal advice. Statutes, DOL FAQs, and local ordinances control. Headcount definitions (temps, staffing agencies, multi-state payroll) vary.
- Local city/county PSL overlays exist even where the state has no mandate — and can be stricter than the state floor where both apply.
- Proposed ≠ law. Engrossed/introduced Pennsylvania bills are watch-only.
- Missouri status matches enrolled HB 567 + Revisor repeal date + DOL FAQ (no longer required as of Aug. 28, 2025).
- Primary synthesis for non-MI/MO rows: CRS R48921 Table A-1 (March 2026), cross-checked to state DOL pages where noted (CT accrual uses CT DOL / PA 24-8 1:30, not the older 1:40 figure).
- Optional QCEW establishment-size context is not used as causation here — this magnet is statute thresholds only.
- Industry hubs for operators: hair salon, daycare, landscaping, food truck. Cash timing before commercial work: how much cash before a commercial contract.
- LegiScan data © LegiScan — used under CC BY 4.0 for bill status fields.
- As of September 18, 2026 (America/New_York).