How to Set Up State and Local Paid Sick Leave Policies in Friday, Minnesota, Nebraska, Nevada, New Jersey, and New Mexico #

This guide provides step-by-step instructions for configuring state and local paid sick leave policies in Friday, focusing on Minnesota (including Minneapolis and Saint Paul), Nebraska, Nevada, New Jersey, and New Mexico. It also includes important Friday product notes.

Note: PTO accrual policies are only available on the Friday Premium plan.

Disclaimer: This article provides general configuration guidance and is not legal advice.

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Minnesota: Earned Sick and Safe Time (ESST) #

Who Is Covered? #

• Employees anticipated to work at least 80 hours in a year for an employer in Minnesota
• Part-time, seasonal, and temporary employees may qualify
• Independent contractors are not covered

ESST Requirements #

• Accrual Rate: 1 hour of ESST for every 30 hours worked
• Annual Accrual Cap: 48 hours per year
• Maximum Balance: 80 hours

Configure the Policy in Friday #

Step-by-Step Setup #

1. Create the Policy

– Go to Time Off
– Select the Policies tab
– Choose the Sick category
– Click Create Policy
– Name the policy: Minnesota Earned Sick and Safe Time

1. Select a Limited Policy: Yes

1. Select Hourly Accrual: Hourly

1. Select Qualifying Hours:

– Work
– Overtime
– Do not select Lunch or Paid Time Off unless providing a more generous benefit.

1. Enter the Accrual Rate: 1 PTO hour for every 30 qualifying hours

1. Set the Maximum Annual Accrual: 48 hours

1. Do Not Add a Waiting Period: No

1. Configure Carryover: All Hours Carried Over

1. Set the Maximum Balance: 80 hours

1. Configure Termination Payout: No

1. Do Not Add Policy Levels

1. Assign Employees: All covered Minnesota employees

1. Choose the Starting-Balance Method:

– Start from Today (new policy)
– Manually (migrating balances)
– Start Retroactively (with complete historical records)
– Start Date (from a specific past date)

Recommended Minnesota Settings #

| Setting | Value |
|————————–|—————————————|
| Policy name | Minnesota Earned Sick and Safe Time |
| Limited policy | Yes |
| Method | Hourly |
| Qualifying hours | Work and Overtime |
| Rate | 1 hour per 30 qualifying hours |
| Maximum annual accrual | 48 hours |
| Waiting period | No |
| Carryover | All |
| Maximum balance | 80 hours |
| Termination payout | No |
| Levels | None |
| Employees | All covered Minnesota employees |

Minnesota Frequently Asked Questions #

• Do salaried exempt employees accrue ESST?

Yes. They are generally presumed to work 40 hours per week unless their regular workweek is shorter.

• Can the employer front-load ESST?

Yes. Two main options:
1. Front-load at least 48 hours, pay unused ESST at year-end, and front-load again.
2. Front-load at least 80 hours for immediate use, no year-end payout.

• Can part-time employees receive a prorated front-loaded amount?

Yes, but must add more time if the employee works enough hours to earn more.

• Is payout required when employment ends?

No, unless the employer’s policy or contract requires it.

• Must ESST balances appear on pay statements?

Yes, at the end of each pay period.

• Does Friday automatically enforce an annual usage limit?

No. Friday controls annual accrual, carryover, and max balance, but not a separate usage limit.

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Minneapolis, Minnesota: Sick and Safe Time #

• Effective 2026, Minneapolis aligns closely with Minnesota’s ESST law.
• Employers must comply with the most favorable provision for employees.

Recommended Friday Settings #

| Setting | Value |
|————————–|—————————————|
| Policy name | Minneapolis Sick and Safe Time |
| Limited policy | Yes |
| Method | Hourly |
| Qualifying hours | Work and Overtime |
| Rate | 1 hour per 30 qualifying hours |
| Maximum annual accrual | 48 hours |
| Waiting period | No |
| Carryover | All |
| Maximum balance | 80 hours |
| Termination payout | No |
| Levels | None |
| Employees | Employees covered by Minneapolis |

Minneapolis Frequently Asked Questions #

• Is a separate Minneapolis policy always required?

Not necessarily. A Minnesota ESST policy may suffice if it meets both laws.

• Can Minneapolis ESST be front-loaded?

Yes. Options include:
– Carry over unused leave under the 48/80-hour caps
– Pay unused leave at year-end and front-load 48 hours
– Front-load 80 hours without payout

• Can an employer impose a waiting period?

No.

• Is termination payout required?

No.

• Does Minneapolis require fractional accrual?

Yes, leave must be credited based on all qualifying hours worked.

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Saint Paul, Minnesota: Earned Sick and Safe Time #

• Follows the 1-for-30 accrual, 48-hour annual accrual, and 80-hour carryover framework.
• Key Difference: Saint Paul does not permit accrual of fractions of an ESST hour.

Recommended Friday Settings #

| Setting | Value |
|————————–|—————————————|
| Policy name | Saint Paul Earned Sick and Safe Time |
| Limited policy | Yes |
| Method | Hourly |
| Qualifying hours | Work and Overtime |
| Rate | 1 hour per 30 qualifying hours |
| Maximum annual accrual | 48 hours |
| Waiting period | No |
| Carryover | All |
| Maximum balance | 80 hours |
| Termination payout | No |
| Levels | None |
| Employees | Employees covered by Saint Paul |

Important Friday Limitation #

• Friday calculates fractional PTO (e.g., 80 hours = 2.67 hours at 1-for-30).
• Saint Paul requires accrual only in full-hour increments after each 30-hour block.
• Employers may allow fractional accrual (more generous), or must manually adjust to comply with Saint Paul’s rule.

Saint Paul Frequently Asked Questions #

• Is fractional accrual prohibited?

Yes, only full-hour increments after each 30 hours worked.

• How much leave carries over?

Up to 80 hours.

• Can Saint Paul leave be front-loaded?

Yes, either 48 hours with payout or 80 hours without payout.

• Is termination payout required?

No.

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Nebraska: Paid Sick Time #

• Effective: October 1, 2025
• Coverage: Employers with 11 or more employees

Required Annual Amount #

| Employer Size | Maximum Annual Accrual |
|———————-|————————|
| 11–19 employees | 40 hours |
| 20+ employees | 56 hours |

Configure the Policy in Friday #

Step-by-Step Setup #

1. Create the Policy: Name it Nebraska Paid Sick Time; select Sick category.
2. Select a Limited Policy: Yes
3. Select Hourly Accrual: Hourly
4. Select Qualifying Hours: Work and Overtime
5. Enter the Accrual Rate: 1 hour per 30 qualifying hours
6. Configure the 80-Hour Employment Threshold:

– Accrual begins after 80 consecutive employment hours.
– Friday does not automate this; manual monitoring required.

1. Set the Maximum Annual Accrual:

– 40 hours (11–19 employees)
– 56 hours (20+ employees)

1. Configure Carryover: All Hours Carried Over
2. Set the Maximum Balance:

– 80 hours (11–19 employees)
– 112 hours (20+ employees)

1. Configure Termination Payout: No
2. Assign Employees: All covered Nebraska employees

Recommended Nebraska Settings #

Employers With 11–19 Employees #

| Setting | Value |
|————————–|—————————————|
| Method | Hourly |
| Rate | 1 hour per 30 qualifying hours |
| Accrual begins | After 80 consecutive employment hours |
| Maximum annual accrual | 40 hours |
| Carryover | All |
| Maximum balance | 80 hours |
| Termination payout | No |

Employers With 20 or More Employees #

| Setting | Value |
|————————–|—————————————|
| Maximum annual accrual | 56 hours |
| Maximum balance | 112 hours |

Nebraska Frequently Asked Questions #

• Does the law apply to employers with 10 employees?

No.

• Does accrual begin on the first day?

No, after 80 consecutive employment hours.

• Can Friday automatically delay accrual for 80 hours?

No, manual administration is required.

• Can a general PTO policy satisfy the law?

Yes, if it meets all requirements.

• Is termination payout required?

No.

• Must time be restored after rehire?

Yes, if rehired within 12 months and time was not paid out.

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Nevada: Paid Leave #

• Coverage: Private employers with 50+ employees in Nevada
• Exclusions: Certain temporary, seasonal, on-call employees; new businesses in first two years

Accrual Requirement #

• Accrual Rate: 0.01923 hours of paid leave per hour worked (≈1 hour per 52 hours)
• Full-time employee (2,080 hours): ~40 hours per year

Configure the Policy in Friday #

Step-by-Step Setup #

1. Create the Policy: Name it Nevada Paid Leave; use Paid Time Off category.
2. Select a Limited Policy: Yes
3. Select Hourly Accrual: Hourly
4. Select Qualifying Hours: Work and Overtime
5. Enter the Accrual Rate: 0.01923 hour per 1 qualifying hour (or 1 per 52 hours if needed)
6. Set the Maximum Annual Accrual: 40 hours (subject to overtime review)
7. Configure the Waiting Period: Yes, 90 days
8. Configure Carryover: Some Hours Carried Over; limit 40 hours
9. Set the Maximum Balance: 80 hours
10. Configure Termination Payout: No

Recommended Nevada Settings #

| Setting | Value |
|————————–|—————————————|
| Policy name | Nevada Paid Leave |
| Category | Paid Time Off |
| Limited | Yes |
| Method | Hourly |
| Qualifying hours | Work and Overtime |
| Rate | 0.01923 per hour, or 1 per 52 hours |
| Maximum annual accrual | 40 hours |
| Waiting period | 90 days |
| Carryover | Some |
| Carryover limit | 40 hours |
| Maximum balance | 80 hours |
| Termination payout | No |
| Levels | None |
| Employees | Covered Nevada employees |

Nevada Frequently Asked Questions #

• Can employees use Nevada paid leave for any reason?

Yes.

• Can the employer front-load leave?

Yes.

• Is 1 hour per 52 hours exactly the same as 0.01923 per hour?

Very close, but not identical. Use 0.01923 if possible.

• Does the law apply to a new business?

No, not during the first two years.

• Are temporary employees covered?

No.

• Is unused leave paid at termination?

Not generally.

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New Jersey: Earned Sick Leave #

• Coverage: Most employees, all employer sizes

Requirement #

• Accrual Rate: 1 hour per 30 hours worked
• Annual Cap: 40 hours (accrual, use, and carryover)

Configure the Policy in Friday #

Step-by-Step Setup #

1. Create the Policy: Name it New Jersey Earned Sick Leave; select Sick category.
2. Select a Limited Policy: Yes
3. Select Hourly Accrual: Hourly
4. Select Qualifying Hours: Work and Overtime
5. Enter the Accrual Rate: 1 hour per 30 qualifying hours
6. Set the Maximum Annual Accrual: 40 hours
7. Configure the Waiting Period: Yes, 120 days
8. Configure Carryover: Some Hours Carried Over; limit 40 hours
9. Set the Maximum Balance: 40 hours
10. Configure Termination Payout: No
11. Assign Employees: All covered New Jersey employees

Recommended New Jersey Settings #

| Setting | Value |
|————————–|—————————————|
| Policy name | New Jersey Earned Sick Leave |
| Limited | Yes |
| Method | Hourly |
| Qualifying hours | Work and Overtime |
| Rate | 1 hour per 30 qualifying hours |
| Maximum annual accrual | 40 hours |
| Waiting period | 120 days |
| Carryover | Some |
| Carryover limit | 40 hours |
| Maximum balance | 40 hours |
| Termination payout | No |
| Levels | None |
| Employees | All covered New Jersey employees |

New Jersey Frequently Asked Questions #

• Can the employer front-load 40 hours?

Yes.

• Can a midyear hire receive prorated front-loaded leave?

Yes, but must provide more if the employee earns more under 1-for-30.

• Must unused leave carry over?

Yes, up to 40 hours.

• Must employees find a replacement worker?

No.

• Can documentation be requested?

Yes, after three or more consecutive workdays or certain dates.

• How long must records be kept?

Five years.

• What happens after rehire?

Unused leave must be restored if rehired within six months.

• Does New Jersey have city overrides?

No, state law generally preempts local ordinances.

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New Mexico: Earned Sick Leave #

• Coverage: Most private employers

Requirement #

• Accrual Rate: 1 hour per 30 hours worked
• Annual Usage Limit: 64 hours
• Carryover: All unused accrued sick leave carries forward

Configure the Policy in Friday #

Step-by-Step Setup #

1. Create the Policy: Name it New Mexico Earned Sick Leave; select Sick category.
2. Select a Limited Policy: Yes
3. Select Hourly Accrual: Hourly
4. Select Qualifying Hours: Work and Overtime
5. Enter the Accrual Rate: 1 hour per 30 qualifying hours
6. Review Maximum Annual Accrual:

– Set to at least 69.34 hours for a 2,080-hour year (or higher for more hours)

1. Do Not Add a Waiting Period: No
2. Configure Carryover: All Hours Carried Over
3. Set the Maximum Balance: High enough to avoid stopping statutory accrual (e.g., 128 hours or more)
4. Configure Termination Payout: No
5. Assign Employees: All covered New Mexico employees

Recommended New Mexico Settings #

| Setting | Value |
|————————–|—————————————|
| Policy name | New Mexico Earned Sick Leave |
| Limited | Yes |
| Method | Hourly |
| Qualifying hours | Work and Overtime |
| Rate | 1 hour per 30 qualifying hours |
| Maximum annual accrual | ≥69.34 hours for 2,080-hour schedule |
| Waiting period | No |
| Carryover | All |
| Maximum balance | High enough to avoid stopping accrual |
| Termination payout | No |
| Levels | None |
| Employees | All covered New Mexico employees |

New Mexico Frequently Asked Questions #

• Why should the annual accrual limit exceed 64 hours?

The law uses a 1-for-30 accrual formula but limits annual use to 64 hours.

• Can an employer front-load leave?

Yes, with 64 hours at the beginning of the year.

• Does front-loading eliminate carryover?

No, carryover is still required.

• Do exempt employees accrue leave?

Yes, presumed 40 hours/week unless their schedule is shorter.

• Is termination payout required?

No.

• What happens after rehire?

Unused leave must be reinstated if rehired within 12 months.

• Does New Mexico have city overrides?

Not currently, but confirm local rules.

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Friday Product Notes #

Hourly Accrual Depends on Friday Timekeeping and Payroll Approval #

• Friday calculates hourly leave from selected qualifying time categories.
• Hourly accrual is created during a supported payroll-approval workflow.

Annual Usage Limits May Require Manual Monitoring #

• Friday documents maximum annual accrual, carryover limits, and maximum balance.
• It does not document a separate annual usage cap.
• Manual monitoring is required for jurisdictions like New Mexico.

Waiting Periods May Not Automatically Block Requests #

• Friday displays pending leave and an availability date.
• Administrators may need to enforce the waiting period during approval.

Termination Payout Is Not Automatically Processed #

• Friday saves the selected policy setting but does not create the actual termination payment.