Sick Leave

Sample Dealership Sick Leave Policy

Adapt this sample policy to fit your own dealership’s situation.

The following sample policy statements are for sick leave plans. Generally, sick leave is granted with pay and without a loss of credit for the employee’s length of service with the company.

If you want your policy to differ from the policies set out below, you should change these policies to reflect those differences.

If you make substantive changes to these policies, however, you should have your attorney look over the changes.

Pay for Illness

Employees will become eligible to participate in the paid time for illness program as follows:

If employed prior to July 1, employees will be allowed up to 10 days in the following year.

If employed between July 1 and December 31, employees will be allowed up to five days in the following year, and up to five days in the succeeding years.

In addition to illness, sick leave may also be granted for medical, dental, or optical examinations or when a member of your household requires your personal care and attention due to illness.

Pay and benefits during sick leave. Illness pay will be based on a regular eight-hour day at straight time and at the employee’s base rate.

Illness absence of less than three hours in a day will not be considered for payment.

Daily overtime hours, paid holidays, and paid vacation time are excluded as time for which payment will be made under this program.

Weekly insurance benefits will continue to be paid commencing with the first day of certified disability due to accidents and the fourth day due to illness.

Thus, in accident and illness cases, the insurance benefit will be paid rather than the paid illness allowance, and any unused illness allowance will be available for use later in the year as needed.

Certification of illness.

Certification of illness by a physician will not normally be required to qualify for payment under this program.

Effect on performance.

While the dealership pays you for authorized sick days, we expect you to be honest with us in taking days off only when you are actually ill.

Any abuse of this benefit will be taken into account in evaluations of your performance. The company reserves the right to require a statement from your doctor.

At termination.

When termination of employment occurs, no payment for sick leave will be made.

Accrual of Sick Leave

Starting with the first day of employment, sick leave will accumulate at the rate of one half (1/2) day per month. Sick leave may accumulate to a maximum of 60 days.

An employee may not receive compensation for unused accumulated sick leave.

One day of sick leave for those employees who normally work a 40-hour week shall be eight hours.

A day of sick leave for employees working fifty-six (56) or more hours per week shall be twelve (12) hours.

Permanent part-time employees are entitled to sick leave as earned on a pro rata basis.

No sick leave shall accumulate to seasonal or temporary employees. All sick leave payments are to be approved by [person who approves sick leave].

Thus, any employee who is ill is responsible for reporting his or her absence to the appropriate person within one hour after his or her designated time for reporting to work.

For questions regarding Human Resources or employment regulations you may want to contact Jennifer McBennett of Seay Management Consultants at (407) 426.9484 or email