What You Should Know About Earned Sick Time

Last week at the polls, voters in Massachusetts approved the right for employees to earn and use up to forty hours of sick leave in the workplace each year. Listed below is what you should know about Earned Sick Time:

v  Beginning on July 1, 2015, this new legislation will allow employees who work for larger companies (11 + employees) to be paid for sick leave, as opposed to those who work for smaller companies (< 11 employees) whose sick leave will be unpaid.

v  This leave can be used in order to care for his/her self, spouse, children, parents or spouse’s parent in the event of a routine medical appointment, injury, physical illness or mental illness. An employee may also use the leave to deal with the effects of domestic violence.

v  An employee can only request sick leave after the first 90 days of employment with a company.

v  Employees are required to earn a minimum of 1 hour of sick time per every 30 hours that they work.

v  Although employees may not use more than 40 hours each year, they can carry over hours that are unused from previous years. These hours are not “paid out” when the employee resigns or is terminated.

v  Employers may request proof of illness if the hours used by an employee for an illness exceed 24 work hours in a row.

v  A notice/handout explaining Earned Sick Leave must be posted where employees can see it.

Further details regarding the administration of the law are still being worked out.  Ipswich Bay Advisors will provide updates as they are released.  If you have any questions regarding the recent legislation or would like our assistance in reviewing how the Earned Sick Time law coordinates with your current leave policies, please contact our office.

Thank you.

Health Plan Identifiers Upcoming Deadline

In an effort to make the healthcare system more streamlined across the United States, The Department of Health and Human Services is now requiring insurers and employers to obtain Health Plan Identifiers for any fully, or self-insured health plan. Health Plan Identifiers are distinct, ten-digit numbers used by HIPAA-governed entities during electronic transactions such as billing.

Employers and insurers are required to attain their distinctive HPID’s for each plan that they provide no later than November 5, 2014. The number of Health Plan Identifiers necessary for a company is reliant upon the number of plans that the company provides. However, smaller health plans (those with yearly proceeds of less than $5 million) are granted an extended deadline of November 5, 2015 to obtain their HPIDs.

For all fully insured health plans, the carriers will take the responsibility of registering the HPID’s.  Please check with your third party administrator for self-insured plans.  Health plan providers are able to register for their Health Plan Identifiers on the Center of Medicaid and Medicare Services website directly. If you need help acquiring your Health Plan Identifier/s or if you have questions, please feel free to contact Ipswich Bay Advisors at (978) 777-6554.