Why So Many Employers Are Confused About ESTA

(AKA the Earned Sick Time Act — and why it causes so many headaches)

This month in HR…We’ve had a lot of conversations that start with:

“Wait… we already have PTO. Do we still have to do ESTA?”

Short answer: Probably, yes.

Long answer: This law is confusing on purpose.

And if you’re unsure how Earned Sick Time actually works, you’re in very good company.

The Trend We’re Seeing

Employers are trying to:

• Simplify time-off policies

• Combine PTO, sick time, and vacation

• Stay compliant without overcomplicating things

Meanwhile, ESTA laws keep evolving, expanding, and varying by state, and suddenly what used to work… doesn’t anymore.

The Question Clients Keep Asking

“If we offer PTO, doesn’t that already cover Earned Sick Time?”

Our favorite HR answer: It depends.

Where the Confusion Comes From

Earned Sick Time laws don’t just care that you offer time off, they care how you offer it.

Common problem areas we see:

• Accrual rates that don’t meet legal minimums

• Waiting periods that are too long

• Caps that aren’t compliant

• Missing carryover language

• Policies that limit how sick time can be used

• Discipline tied to legally protected sick time

Just calling it “PTO” doesn’t automatically make it compliant.

What ESTA Typically Requires

While details vary by state, most Earned Sick Time Acts include rules around:

• How much time employees accrue

• When they can start using it

• What reasons qualify as protected sick time

• How much must carry over year to year

• Notice and documentation rules

• Anti-retaliation protections

If your policy doesn’t explicitly meet those requirements, you may be out of compliance, even if you meant well.

Our Take (From the HR Desk)

This law trips up employers because it feels simple but lives in the details.

We see well-run businesses get cited or complained about simply because:

• The handbook language is outdated

• Managers apply the policy inconsistently

• Payroll isn’t tracking sick time correctly

• The policy doesn’t match actual practice

And yes, employees are increasingly aware of their rights.

🐾How AlphaDog HR Helps

We help employers:

• Review PTO and sick time policies for ESTA compliance

• Align accrual, carryover, and usage rules

• Update handbook language

• Train managers on what they can and cannot enforce

• Reduce complaints, claims, and penalties

If you’re unsure whether your PTO policy actually complies with Earned Sick Time laws, that’s your sign to check.

Because when it comes to ESTA… “Close enough” isn’t compliant.