TN 8 (11-93)

A. DEFINITION

Sick pay generally means any amount paid under a plan because of an employee's injury, sickness, or disability. Sick pay means the same as payments on account of sickness or accident disability. Sick pay may be paid by either the employer or a third party, such as an insurance company.

B. POLICY

Employer or third party payments for sick or accident disability, whether or not under a plan or system, are wages the first six calendar months after the calendar month in which the employee last worked for the employer.

REFERENCE: See RS 01402.090 for payments made after six calendar months and for payments prior to 1982.