PHILADELPHIA AND PAID SICK LEAVE

On February 12, 2015, the Philadelphia City Council passed legislation mandating paid sick leave in Philadelphia.  Mayor Michael Nutter signed the legislation into law later that day.    The law, effective 90 days after signing, requires businesses with 10 or more employees to guarantee at least one hour of paid sick leave for every 40 hours worked.  Franchised businesses within Philadelphia, particularly those in the restaurant industry, lobbied against the bill saying that it will discourage businesses from moving to the city and deter current companies from expanding.  Efforts to increase the threshold number of employees from 10 to 15 or 50 ultimately failed.  However, the new law in Philadelphia may be short lived as Pennsylvania considers paid leave preemption in House Bills 1807 and 1796 filed earlier this year.  Both bills would ensure local municipalities cannot pass piecemeal paid leave requirements on businesses in Pennsylvania.  Twelve other states have already passed similar preemption bills.

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Filed under Franchise Basics, Franchise Insight, Franchise Law, In The News, Restaurant & Hospitality Law, The Franchise Legislation Monitor

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