Philadelphia Paid Sick Leave Rules: Chapter 9-4100 Accrual & Employer Tiers
A comprehensive compliance guide to Philadelphia’s paid and unpaid sick leave law: 1:40 accrual ratios, employer size thresholds (10+ employees & chain establishments), 90-day waiting periods, and bank carryover limits.
Direct Answer Summary
In the City of Philadelphia, employees who work at least 40 hours in the city in a calendar year accrue 1 hour of sick time for every 40 hours worked, capped at 40 hours per year. Employers with 10 or more employees (or chain establishments with 15+ locations nationally) must provide paid sick leave; smaller employers provide unpaid sick leave. Usage begins on the 90th calendar day of employment. Unused sick time is not cashed out upon separation.
Calculate Your Philadelphia Sick Leave Balance
Audit accrued hours, check your 90-day usage eligibility date, and verify employer tier requirements.
1. The Ordinance: Philadelphia Code Chapter 9-4100
In 2015, Philadelphia enacted the Promoting Healthy Families and Workplaces Ordinance, codified in Philadelphia Code §§ 9-4101 through 9-4116. The ordinance is enforced by the City of Philadelphia Department of Labor, Office of Worker Protections.
Under Phila. Code § 9-4102(3), an employee is covered if they perform work within the geographic boundaries of the City of Philadelphia for at least 40 hours in a calendar year. Only hours physically worked inside Philadelphia count toward accrual; telework performed outside city limits does not accrue Philadelphia sick leave.
2. Paid vs. Unpaid Sick Leave: The 10-Employee & Chain Rule
Under Phila. Code § 9-4103, the employer’s obligation depends upon total staffing count:
Employers with 10 or more employees, or chain establishments operating 15 or more locations nationally, must provide paid sick leave compensated at the employee’s regular hourly rate.
Employers with fewer than 10 employees (and not part of a 15+ location chain) must provide unpaid sick leave. Employees accrue time under the same formula and receive full statutory job protection.
Note: When counting employees, the employer must count all individuals employed across all working locations (inside or outside Philadelphia) for at least 40 weeks in the preceding 12 months.
3. Accrual Formula, Annual Caps & Frontloading
Under Phila. Code § 9-4103(1):
Accrued Sick Hours = min(40, Hours Worked in Philadelphia ÷ 40)
- 160 Hours Worked: Accrues 4.0 hours of sick time.
- 1,600 Hours Worked: Accrues 40.0 hours of sick time (reaches standard statutory annual cap).
- 2,000 Hours Worked: Accrual remains capped at 40.0 hours, unless the employer has an established policy providing a more generous annual limit.
- Frontload Option: Employers may satisfy the ordinance by frontloading at least 40 hours of sick time at the beginning of each calendar year, eliminating the need to track fractional hour accruals.
4. The 90-Calendar-Day Usage Waiting Period
Under Phila. Code § 9-4104(1), employees begin accruing sick time on their very first day of employment. However, employees are entitled to begin using accrued sick leave only on the 90th calendar day of employment.
• Day 89: Accrued sick time is credited to the bank, but the statutory waiting period remains active. The employer is not legally obligated to approve sick time under the ordinance.
• Day 90: The waiting period is satisfied, and all accrued, available sick time becomes legally usable for statutory purposes.
• Dates Omitted / Unverified: If employment records do not establish the hire date, the calculator certifies accrued hours but marks usage status as Usage Unverified rather than falsely assuming full usage eligibility.
5. Carryover, Anti-Retaliation & No Separation Cashout
- Annual Carryover: Up to 40 hours of unused accrued sick time must be carried over to the following benefit year under the accrual method, though an employer may limit total usage in any single year to 40 hours.
- No Cashout Mandate (§ 9-4103(6)): Unused sick time is not required to be paid out upon employee resignation, discharge, or layoff.
- Anti-Retaliation (§ 9-4106): Employers cannot penalize, discipline, reduce hours, or discharge an employee for requesting or taking statutory sick leave.