How to Set Up State Paid Sick Leave Accrual Policies in Friday #

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

This guide explains how to configure paid sick leave accrual policies in Friday for Alaska, Arizona, California, Colorado, and Connecticut. Each section provides step-by-step configuration instructions, recommended settings, and frequently asked questions.

Important: This guide provides general configuration guidance and is not legal advice. Employers are responsible for confirming that their written policies and Friday settings satisfy all applicable requirements.

---

Alaska: Paid Sick Leave Accrual Policy #

Who Must Provide Alaska Paid Sick Leave? #

• Effective July 1, 2025, most Alaska employers must provide paid sick leave to covered employees, including part-time employees.
• Exclusions: Some minors working fewer than 30 hours/week, certain agricultural and domestic-service workers, specified student learners, and employees under a collective bargaining agreement that waives the statutory sick leave right.

Determine the Required Annual Limit #

| Employer Size (FTEs) | Annual Accrual & Usage Limit |
|—————————————-|——————————|
| Fewer than 15 | 40 hours |
| 15 or more | 56 hours |

• Alaska uses a full-time-equivalent (FTE) calculation based on the previous calendar year.

Configure the Policy in Friday #

Step-by-Step Setup #

1. Create the Policy

– Go to Time Off > Policies.
– Select the Sick category.
– Click Create Policy.
– Name: Alaska Paid Sick Leave
– Add a description for Alaska-required paid sick leave.

1. Select a Limited Policy

– Choose Yes when asked if there is a limit to hours employees can take off.

1. Select Hourly Accrual

– Select Hourly.
– Accrual rate: 1 hour per 30 hours worked.

1. Select Qualifying Hours

– Select: Work, Overtime
– Do not select: Lunch, Paid Time Off

1. Enter the Accrual Rate

– 1 PTO hour for every 30 qualifying hours.

1. Set the Maximum Annual Accrual

– 40 hours (fewer than 15 FTEs)
– 56 hours (15 or more FTEs)

1. Do Not Add a Waiting Period

– Select No (accrual begins at employment start).

1. Configure Carryover

– Select All Hours Carried Over.

1. Set the Maximum Balance

– Use a balance higher than the annual limit (e.g., 80 hours for a 40-hour policy, 112 hours for a 56-hour policy).
– Confirm with legal/HR adviser.

1. Configure Termination Payout

– Select No.

1. Do Not Add Policy Levels

– Only add more generous levels if all covered employees receive at least the minimum.

1. Assign Employees

– Select Everyone (unless excluding non-Alaska or excluded workers).

1. Select the Starting-Balance Method

– Choose based on whether the policy is new, importing balances, or retroactive.

Recommended Alaska Settings #

Fewer Than 15 FTEs #

• Policy name: Alaska Paid Sick Leave
• Limited policy: Yes
• Method: Hourly
• Qualifying hours: Work and Overtime
• Rate: 1 hour per 30 qualifying hours
• Maximum annual accrual: 40 hours
• Waiting period: No
• Carryover: All
• Maximum balance: Higher than 40 hours; review with adviser
• Termination payout: No
• Levels: None
• Employees: All covered Alaska employees

15 or More FTEs #

• Same as above, but:

– Maximum annual accrual: 56 hours
– Maximum balance: Higher than 56 hours; review with adviser

Alaska Frequently Asked Questions #

• Do part-time employees qualify? Yes, based on hours worked.
• Do salaried exempt employees accrue leave? Yes, generally assumed 40 hours/week unless otherwise.
• Do holiday and vacation hours count toward accrual? No.
• Can the employer front-load the full amount? Yes, use a Fixed, Calendar Year policy in Friday.
• Can the employer require documentation? Yes, after more than three consecutive workdays.
• Does Friday automatically pay unused leave at termination? No.
• When does hourly accrual appear in Friday? During a supported payroll-approval workflow.

---

Arizona: Earned Paid Sick Time Policy #

Determine the Required Annual Limit #

| Employer Size | Accrual Rate | Annual Cap |
|—————————|—————————–|—————–|
| Fewer than 15 employees | 1 hour per 30 hours worked | 24 hours/year |
| 15 or more employees | 1 hour per 30 hours worked | 40 hours/year |

• All employee types generally count toward employer size.

Configure the Policy in Friday #

Step-by-Step Setup #

1. Create the Policy

– Go to Time Off > Policies.
– Select Sick.
– Click Create Policy.
– Name: Arizona Earned Paid Sick Time

1. Select a Limited Policy

– Select Yes.

1. Select Hourly Accrual

– Select Hourly.

1. Select Qualifying Hours

– Select: Work, Overtime
– Do not select: Lunch, Paid Time Off (unless providing more generous policy).

1. Enter the Accrual Rate

– 1 hour per 30 qualifying hours.

1. Set the Maximum Annual Accrual

– 24 hours (fewer than 15 employees)
– 40 hours (15 or more employees)

1. Configure the Waiting Period

– Optional: Up to 90 days (Arizona allows a 90-day waiting period for new hires).
– Friday may not fully block requests during waiting period; administrators must enforce.

1. Configure Carryover

– Select All Hours Carried Over.

1. Set the Maximum Balance

– 24 or 40 hours, or higher if required by carryover method.
– Review with legal/HR counsel.

1. Configure Termination Payout

– Select No.

1. Do Not Add Policy Levels

– Do not use levels to provide less than the legal minimum.

1. Assign Employees

– Assign all covered Arizona employees.

1. Choose the Starting Balance

– Select based on policy status (new, imported, retroactive, specific date).

Recommended Arizona Settings #

Fewer Than 15 Employees #

• Policy name: Arizona Earned Paid Sick Time
• Limited: Yes
• Method: Hourly
• Qualifying hours: Work and Overtime
• Rate: 1 hour per 30 qualifying hours
• Maximum annual accrual: 24 hours
• Waiting period: 90 days or No
• Carryover: All
• Maximum balance: Review based on carryover method
• Termination payout: No
• Levels: None

15 or More Employees #

• Same as above, but:

– Maximum annual accrual: 40 hours

Arizona Frequently Asked Questions #

• Can employees use accrued time immediately? Yes, or after up to 90 days.
• Do salaried exempt employees accrue sick time? Yes, generally based on 40 hours/week.
• Can an employer front-load the annual amount? Yes.
• Is carryover required when front-loaded? Not if unused time is paid out and new time is front-loaded.
• Can an employee be required to find a replacement? No.
• Can documentation be required? Yes, after three or more consecutive workdays.
• Are there Arizona city overrides? No separate city accrual setup identified.

---

California: Paid Sick Leave Accrual Policy #

Local Warning: Several California cities have separate paid sick leave ordinances. Use the most generous provision.

Statewide Requirement #

• Accrual: 1 hour per 30 hours worked.
• Usage: At least 40 hours or five days per year, whichever is greater.
• Accrued balance cap: 80 hours or 10 days, whichever is greater.

Configure the Policy in Friday #

Step-by-Step Setup #

1. Create the Policy

– Go to Time Off > Policies.
– Select Sick.
– Click Create Policy.
– Name: California Paid Sick Leave

1. Select a Limited Policy

– Select Yes.

1. Select Hourly Accrual

– Select Hourly.

1. Select Qualifying Hours

– Select: Work, Overtime

1. Enter the Accrual Rate

– 1 hour per 30 qualifying hours.

1. Set the Maximum Annual Accrual

– 80 hours.

1. Configure the Waiting Period

– Optional: 90 days (California allows a 90-day waiting period for use).
– Friday may not fully block requests during waiting period.

1. Configure Carryover

– Select All Hours Carried Over.

1. Set the Maximum Balance

– 80 hours or 10 days, whichever is greater.

1. Configure Termination Payout

– Select No.

1. Do Not Add Policy Levels

– Do not use levels to provide less than the minimum.

1. Assign Employees

– Assign all covered California employees.

1. Choose the Starting-Balance Method

– Select based on policy status.

Recommended California State Settings #

• Policy name: California Paid Sick Leave
• Limited: Yes
• Method: Hourly
• Qualifying hours: Work and Overtime
• Rate: 1 hour per 30 qualifying hours
• Maximum annual accrual: 80 hours, subject to review
• Waiting period: 90 days
• Carryover: All
• Maximum balance: 80 hours or 10 regular workdays, whichever is greater
• Termination payout: No
• Levels: None
• Employees: All covered California employees

California Local-Ordinance Warning #

• Local ordinances may override state requirements.
• Review city-specific requirements for:

– Accrual/front-loading
– Usage limits
– Balance caps
– Covered employee definitions
– Waiting periods
– Permitted uses
– Notice and recordkeeping

California Frequently Asked Questions #

• Is the minimum 40 hours or five days? Whichever is greater.
• Why is the maximum balance higher than 40 hours? To allow for carryover and accrual distinctions.
• Can the employer front-load leave? Yes.
• Is carryover required under a front-loaded policy? Not if the full amount is provided at the start of each year.
• Does the policy cover part-time employees? Yes.
• Must unused sick leave be restored after rehire? Generally, yes, within one year.
• Does California have city rules that override the state setup? Yes.

---

Colorado: Paid Sick Leave Policy #

Note: Colorado may require additional leave during a declared public health emergency.

Colorado Requirement #

• Accrual: 1 hour per 30 hours worked.
• Accrual and usage cap: 48 hours per benefit year.
• Carryover: Up to 48 hours.

Configure the Policy in Friday #

Step-by-Step Setup #

1. Create the Policy

– Go to Time Off > Policies.
– Select Sick.
– Click Create Policy.
– Name: Colorado HFWA Paid Sick Leave

1. Select a Limited Policy

– Select Yes.

1. Select Hourly Accrual

– Select Hourly.

1. Select Qualifying Hours

– Select: Work, Overtime

1. Enter the Accrual Rate

– 1 hour per 30 qualifying hours.

1. Set the Maximum Annual Accrual

– 48 hours.

1. Do Not Add a Waiting Period

– Select No.

1. Configure Carryover

– Select Some Hours Carried Over
– Carryover limit: 48 hours.

1. Set the Maximum Balance

– 48 hours.

1. Configure Termination Payout

– Select No.

1. Do Not Add Policy Levels

– Do not use levels to reduce/delay the benefit.

1. Assign Employees

– Assign all covered Colorado employees.

1. Choose the Starting Balance

– Select based on policy status.

Recommended Colorado Settings #

• Policy name: Colorado HFWA Paid Sick Leave
• Limited: Yes
• Method: Hourly
• Qualifying hours: Work and Overtime
• Rate: 1 hour per 30 qualifying hours
• Maximum annual accrual: 48 hours
• Waiting period: No
• Carryover: Some
• Carryover limit: 48 hours
• Maximum balance: 48 hours
• Termination payout: No
• Levels: None
• Employees: All covered Colorado employees

Public-Health-Emergency Leave #

• Additional leave may be required during a declared public health emergency.
• Do not add this to the standard 48-hour policy unless a qualifying emergency is in effect.

Colorado Frequently Asked Questions #

• Do all Colorado employers have to provide leave? Generally, yes.
• Can employees use leave immediately? Yes.
• Can an employer front-load 48 hours? Yes, use a Fixed, Calendar Year policy.
• Does unused leave carry over? Yes, up to 48 hours.
• Must unused sick leave be paid at termination? No.
• What happens if the employee is rehired? Unused leave must generally be restored within six months.
• Does Friday automatically add emergency leave? No, must be configured separately.

---

Connecticut: Paid Sick Leave Policy (2026 Law) #

Which Employers Are Covered in 2026? #

| Effective Date | Employer Size Threshold |
|———————–|————————|
| Jan 1, 2025 | 25+ CT employees |
| Jan 1, 2026 | 11+ CT employees |
| Jan 1, 2027 | 1+ CT employees |

• In 2026, applies to employers with at least 11 Connecticut employees.

Connecticut Requirement #

• Accrual: 1 hour per 30 hours worked.
• Accrual cap: 40 hours per year.

Configure the Policy in Friday #

Step-by-Step Setup #

1. Create the Policy

– Go to Time Off > Policies.
– Select Sick.
– Click Create Policy.
– Name: Connecticut Paid Sick Leave

1. Select a Limited Policy

– Select Yes.

1. Select Hourly Accrual

– Select Hourly.

1. Select Qualifying Hours

– Select: Work, Overtime

1. Enter the Accrual Rate

– 1 hour per 30 qualifying hours.

1. Set the Maximum Annual Accrual

– 40 hours.

1. Do Not Add a Waiting Period

– Select No for most employees.
– Optional: 120 days (statute allows use after 120 calendar days). Friday may not fully block requests.

1. Configure Carryover

– Select Some Hours Carried Over
– Carryover limit: 40 hours.

1. Set the Maximum Balance

– 40 hours.

1. Configure Termination Payout

– Select No.

1. Do Not Add Policy Levels

– Do not use levels to delay/reduce the benefit.

1. Assign Employees

– Assign covered Connecticut employees (11+ in 2026).

1. Choose the Starting-Balance Method

– Select based on policy status.

Recommended Connecticut Settings for 2026 #

• Policy name: Connecticut Paid 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: Review 120-day use threshold
• Carryover: Some
• Carryover limit: 40 hours
• Maximum balance: 40 hours
• Termination payout: No
• Levels: None
• Employees: Covered Connecticut employees

Connecticut Frequently Asked Questions #

• Does the law apply to employers with fewer than 11 employees in 2026? No, until 2027.
• Do employees accrue one hour for every 30 hours worked? Yes.
• How much can employees accrue? 40 hours per year.
• Can the employer front-load 40 hours? Yes, use a Fixed, Calendar Year policy.
• Does unused leave carry over? Yes, up to 40 hours.
• Are seasonal employees covered? Some are excluded; review classification.
• Does Connecticut have a city override? No city-specific accrual identified.
• What changes on January 1, 2027? Threshold drops to 1+ Connecticut employees.

---

Friday Product Notes Applicable to All Five Articles #

Hourly Accrual Depends on Friday Time Records #

• Hourly policies calculate leave from selected qualifying categories.
• Accrual is generated during a supported payroll-approval workflow.
• If employees do not track time in Friday, employers may need to:

– Import or enter qualifying hours
– Make manual balance adjustments
– Use a compliant fixed or front-loaded policy

Maximum Annual Accrual and Maximum Balance Are Different #

• Maximum hours accrued per year: Limits new accrual during the policy year.
• Maximum balance: Limits the total hours an employee may hold at once.
• Do not automatically use the same value for both fields unless supported by law and policy.

Waiting Periods May Require Manual Enforcement #

• Friday displays pending balances and an availability date.
• The system may not independently prevent requests during the waiting period; administrators must enforce the rule.

Termination Payout Is Not Automatically Processed #