Sick leave


Summary Definition: Time off work an employee takes to recover from a short-term illness, attend a medical appointment, or care for a sick family member.


Last updated: November 9, 2026

Key takeaways

  • Sick leave covers brief, everyday absences for illness or medical appointments, distinct from the longer-term absences covered by medical leave or FMLA. 
  • There's no federal paid sick leave law, so compliance depends on tracking the specific state and local requirements that apply to each work location. 
  • A clear sick leave policy supports absence management by giving employees a predictable way to take time off while giving employers a consistent framework for tracking usage. 

What is paid sick leave? 

Sick leave, also called employee illness leave, covers the everyday reality that employees get sick and need a day or two to recover without losing pay or facing discipline.  

Paid sick leave specifically refers to sick days that come with continued wages, whether earned through an accrual system, a lump-sum grant at the start of the year, or a state or local mandate that guarantees a minimum amount regardless of company policy. 

Paid vs. Unpaid sick leave 

Sick leave becomes unpaid in two common situations — when paid sick leave laws don't apply, or when an employee has exhausted their paid balance. 

Unpaid sick leave still protects the employee's job in the moment, but it doesn't replace lost wages the way paid leave does. For longer illnesses, many employers layer on additional support, such as PTO, short-term disability, or an unpaid leave of absence, once paid sick time runs out.

Common sick leave scenarios 

Sick leave is meant for brief, common medical conditions rather than the extended absences covered by medical leave or FMLA: 

  • Short-term illness: A cold, flu, or stomach bug that keeps an employee home for a day or two. 
  • Medical and dental appointments: Routine checkups, preventive care, or follow-up visits. 
  • Caring for a sick family member: Many paid sick leave laws let employees use sick days to care for a child, spouse, or parent, not just themselves. 
  • Mental health days: A growing number of policies explicitly recognize mental health as a valid reason to use sick time, supporting broader employee wellness. 

Sick leave compliance requirements 

Sick leave compliance varies significantly by location, since there's no federal law mandating paid sick leave.  

However, a growing number of states and cities require employers to provide a minimum amount of paid sick time, typically accrued at a set rate per hours worked, with rules covering carryover, use, and notice to employees. 

What is a sick leave policy? 

A sick leave policy details how much sick time employees earn, how it accrues, when it can be used, and what documentation, if any, is required for extended absences. A well-structured policy supports absence management by giving employees a clear, predictable way to take time off for illness while giving employers a consistent framework for tracking usage. 

A typical sick leave policy includes: 

  • Accrual method: How sick time builds up, such as a set amount per pay period, a lump sum at the start of the year, or a rate tied to hours worked. 
  • Eligibility: Which employees the policy covers, including any waiting period before newly hired employees can start using accrued time. 
  • Permitted uses: What qualifies as sick leave, such as personal illness, medical appointments, or caring for a sick family member. 
  • Carryover and payout rules: Whether unused sick time rolls over into the next year, is capped, or is forfeited, and whether it's paid out upon termination. 
  • Notice and documentation requirements: How far in advance employees must notify their employer of foreseeable absences, and when a doctor's note or other certification is required for extended use. 
  • Interaction with other leave types: How sick leave coordinates with FMLA, state paid sick leave laws, or a broader paid time off (PTO) policy when absences overlap.

Related glossary terms

 

011002000110a-taxservices-fullwidth

Get taxes done right, without the stress

We know there's a lot that goes into preparing and filing payroll tax forms. Save time and get support from our expert team. As a Registered Reporting Agent with the IRS, we can help prepare and file all the necessary forms you need to remain compliant - even in the face of changing legislation. Learn more here.

Payroll Tax Services