New Jersey’s New PTO Mandate Attorney-client privileged / confidential / work product Presented by: Romana S. Syed, Esq. Attorney-Client Privileged/Confidential/Work Product.

About Frier Levitt, LLC Frier Levitt is a national boutique healthcare law firm located in Pine Brook, New Jersey. Our 30+ attorneys bring collective experience and backgrounds in pharmacy, hospital administration, professional licensing, Attorney General actions, clinical practice, and medical billing. Through our experience in representing thousands of pharmacies across the country, we have developed strong relationships with key decision-makers at each pharmacy benefits manager and have successfully fought on behalf of pharmacies and healthcare providers in conducting Medicare appeals. Frier Levitt provides directed and uniquely-tailored legal services to specialty pharmacies including network issues, State and Federal Any Willing Provider laws, regulations limiting specialty drug co- payments and limited distribution drug concerns. Moreover, Frier Levitt also provides comprehensive legal services to our healthcare clients, including corporate and transactional services, regulatory advice, and litigation support. Copyright © 2018. All rights reserved. Confidential and Proprietary. Not for distribution.

About Frier Levitt, LLC Romana S. Syed, Esq. Attorney Bio Romana S. Syed, Esq., is an associate in the Healthcare Department, focusing her practice in regulatory and transactional healthcare and pharmacy law. Romana provides counsel to various healthcare providers and pharmacies on regulatory matters including Anti-Kickback and Stark Laws, HIPAA and HITECH compliance, and develops compliance plans and policies and procedures for healthcare providers. She represents clients in a range of corporate matters, including business formation, licensing, employment matters and contract development and negotiations. Romana also provides counsel to pharmacies on a variety of regulatory matters, including the legality of marketing arrangements, as well as the use of marketing materials and preprinted prescription forms. She has extensive experience in representing clients with Medicare and Medicaid appeals, voluntary disclosures with the Office of the Inspector General, and in administrative matters before state Medical and Pharmacy Boards. Romana earned her Juris Doctorate from the South Texas College of Law in Houston, Texas, with an emphasis on Business and Healthcare law. Prior to joining Frier Levitt, Romana served as the in-house corporate counsel for the captive physician group of a major hospital medical center in northern New Jersey. Romana is fluent in Urdu and Hindi. Bar Admissions State of New Jersey State of New York State of Texas Romana S. Syed, Esq. Attorney Copyright © 2018. All rights reserved. Confidential and Proprietary. Not for distribution.

New Jersey PTO Mandate Overview On May 2nd, NJ enacted the New Jersey Paid Sick Leave Act Goes into effect on October 29, 2018 • Requires all “Covered Employers” to provide up to 40 hours of sick leave to their employees Copyright © 2018. All rights reserved. Confidential and Proprietary. Not for distribution.

New Jersey PTO Mandate Definitions • “Covered Employers” Applies to any business entity, irrespective of size, that employs employees in the state of New Jersey. Excludes: public employers required to provide their employees with sick leave. “Covered Employees” Applies to most employees working in the state "for compensation" Excludes: Employees in the construction industry, under a collective bargaining agreement, per diem healthcare employees, and public employees who already have sick leave benefits. Copyright © 2018. All rights reserved. Confidential and Proprietary. Not for distribution.

The Mandate Covered employers must have a sick leave policy under which an eligible employee earns at least 1 hour of paid sick leave for every 30 hours an employee works Copyright © 2018. All rights reserved. Confidential and Proprietary. Not for distribution.

Qualifying Reasons for Use of Leave • Diagnosis, care, treatment of (or recovery from) an employee's own mental or physical illness, including preventive medical care. • Aid or care for a covered family member during diagnosis, care, treatment of (or recovery from) the family member's mental or physical illness, including preventive medical care. • Circumstances related to an employee's or their family member's status as a victim of domestic or sexual violence • Closure of an employee's workplace or of a school/childcare of an employee's child because of a public official's order relating to a public health emergency. • Time to attend a meeting requested or required by school staff to discuss a child's health condition or disability. Copyright © 2018. All rights reserved. Confidential and Proprietary. Not for distribution.

How Employers Provide These Hours Frontloading Provide the full amount of earned sick leave that an employee would earn over the course of the year at the beginning of each benefit year. Accrual Employees accrue paid sick leave as it is earned. Copyright © 2018. All rights reserved. Confidential and Proprietary. Not for distribution.

Leave Accrual Accrual begins on October 29, 2018 for current employees. Accrual period: Employer must designate any period of 12 consecutive months as a "benefit year." Accrual limits: In each benefit year, an employee will accrue up to 40 hours of sick time at a rate of one hour for every 30 hours worked. Alternatively, an employer may "frontload" the full 40 hours at the beginning of the benefit year. Copyright © 2018. All rights reserved. Confidential and Proprietary. Not for distribution.

Use of Earned Sick Leave When Leave Can be Used Employees can use accrued sick time after the 120th day of the start of employment Increments of Use No requirement on the increment that you have to allow the employee to use the leave The largest increment cannot be larger than the number of hours an employee was scheduled to work in a given shift Copyright © 2018. All rights reserved. Confidential and Proprietary. Not for distribution.

Notice to Employer Foreseeable May require advance notice (up to 7 calendar days) of the intent to use the leave and the expected duration May require employees to make a reasonable effort to schedule use of sick leave that doesn’t unduly disrupt operations May prohibit use on certain dates, and require documentation if sick leave that is not foreseeable is used on those dates Unforeseeable May require notice of the intent to use leave as soon as practicable Copyright © 2018. All rights reserved. Confidential and Proprietary. Not for distribution.

Carryover vs. Payout Based on the same rate of pay that the employee earns at the time of payment Payout Pay the full amount of unused accrued sick time during the final month of the benefit year Carryover Carry forward up to 40 hours of unused sick time to next benefit year Employer is not required to permit employees to use more than 40 hours of accrued sick time in a single benefit year. Copyright © 2018. All rights reserved. Confidential and Proprietary. Not for distribution.

Other Scenarios Transfer Employee retains all accrued sick time Separation Employee may, but does not have to be, paid out any unused accrued sick time Reinstatement If rehired within 6 months, any unused sick leave that accrued at the time of separation will be reinstated (unless it was voluntarily paid out) Copyright © 2018. All rights reserved. Confidential and Proprietary. Not for distribution.

Anti-Retaliation Provisions An employer may not retaliate for: Requesting/using earned sick leave Filing a complaint Communicating with any person about violations of the law Participating in an investigation regarding alleged violation Information another person of that person’s potential rights Copyright © 2018. All rights reserved. Confidential and Proprietary. Not for distribution.

Notice to Employees Provide notice of changes to employees by November 29th Post notice in a noticeable place, accessible to all employees in the workplace Copyright © 2018. All rights reserved. Confidential and Proprietary. Not for distribution.

State Law Preempts Local Laws As of October 29th, all local leave laws within the state are preempted by the State’s new rule Copyright © 2018. All rights reserved. Confidential and Proprietary. Not for distribution.

Enforcement Action Complaint with the NJ Department of Labor and Workforce Development www.Nj.gov/labor/wagehour/compInt/filing_wage_claim.html Lawsuit potentially seeking up to actual damages suffered plus an equal amount of liquidated damages Copyright © 2018. All rights reserved. Confidential and Proprietary. Not for distribution.

What Next? Copyright © 2018. All rights reserved. Confidential and Proprietary. Not for distribution.

Questions? Copyright © 2018. All rights reserved. Confidential and Proprietary. Not for distribution.

Thank You! Romana S. Syed, Esq. rsyed@frierlevitt.com 973.618.1660 Website: FrierLevitt.com LinkedIn: LinkedIn.com/company/Frier-Levitt-LLC Twitter: @FrierLevitt Facebook: Facebook.com/FrierLevittAttorneys Copyright © 2018. All rights reserved. Confidential and Proprietary. Not for distribution.