In recent years, a growing number of U.S. states have implemented mandatory paid sick leave laws, requiring employers to offer time off for employees to recover from illness, attend medical appointments, or care for a sick family member. These laws are not just a nod to public health — they’re also a legal safeguard for workers and a reflection of evolving expectations around work-life balance and employee well-being.

Yet despite these mandates, some employers continue to penalize or subtly discourage employees from using their earned sick leave — through points-based attendance policies, negative performance reviews, or missed promotion opportunities. These actions are not only counterproductive but may also violate the law.

Understanding State-Mandated Sick Pay

As of 2025, more than a dozen states, including California, New York, Illinois, and New Jersey, have laws requiring paid sick leave. While the specifics vary, the core requirements generally include:

• Accrual based on hours worked (e.g., 1 hour of sick leave per 30 hours worked)
• Protected reasons for use, including personal or family illness, preventive care, or recovery from domestic violence
• Job protection while on leave
• Prohibition on retaliation for using sick time

States like Illinois recently updated their laws to expand coverage under the Paid Leave for All Workers Act, requiring nearly all employers to provide at least 40 hours of paid leave annually for any reason, not just illness.

The Problem: Punitive Attendance Policies

Despite these legal protections, many employers still operate under points-based or “no-fault” attendance systems where all absences are treated equally — regardless of whether the time off is protected by law. This leads to troubling consequences, such as:

• Employees receiving attendance “points” for using sick leave, which can lead to disciplinary action
• Workers feeling pressured to “tough it out” and come to work sick
• Unequal treatment of employees, especially those with chronic conditions or caregiving responsibilities

This approach not only undermines the intent of sick leave laws but may also open companies to legal risk. In states with explicit anti-retaliation clauses, penalizing employees for protected sick leave use can result in fines, lawsuits, or other enforcement actions.

Why It Matters: Legal, Ethical, and Operational Risks

Penalizing employees for using sick leave isn’t just unlawful in many jurisdictions — it’s also bad business. Here’s why:

• Legal compliance: Ignoring state and local sick leave laws exposes employers to legal action, government audits, and costly settlements.
• Employee morale: When workers are punished for taking care of themselves or their families, engagement and trust decline.
• Public health: Encouraging sick employees to report to work can increase the spread of illness and impact entire teams or customer bases.
• Turnover and retention: Employees who don’t feel respected or supported are more likely to leave — and replacing them is expensive.

Best Practices for Employers

To stay compliant and foster a healthy workplace culture, employers should:

• Review and revise attendance policies to ensure they do not penalize lawful sick leave use.
• Train supervisors on the legal rights of employees under state and local sick leave laws.
• Separate protected leave from unexcused absences when tracking attendance.
• Clearly communicate to employees that their right to use paid sick time is respected and protected.
• Encourage a culture of wellness where taking time to recover is viewed as a responsible action, not a liability.

Final Thoughts

State-mandated sick leave laws are designed to protect public health and promote humane workplace practices. Employers who fail to respect these protections — by penalizing workers for using earned time off — not only break the law but risk damaging the very foundation of trust that underpins a productive workforce.

As more jurisdictions expand their sick leave laws, it’s critical that businesses not only stay compliant but also lead with empathy. Because at the end of the day, honoring sick leave is about more than policy — it’s about people.