San Diego Lawyers for Employers

What is the recent California “Paid Sick Leave Law” and how does it affect California employers?  Under the new law, all employers must provide California employees with at least 24 hours or 3 days of paid sick leave each year, once the employee has completed 90 days of employment (often considered a probationary period of employment), and works at least 30 days.  The year is defined as the anniversary of their date of employment, and must be tracked separately.

All employees who work 30 days within a year for an employer in California are covered by the Paid Sick Leave Law, including:

  • Part Time Employees
  • Per Diem Employees
  • Temporary Employees

There are a few exceptions to this law, including employees covered by collective bargaining agreements, providers of publicly funded in-home supportive services and individuals employed by an air carrier as a flight deck or cabin crew member, if they receive compensated time off at least equivalent to the requirements of the new law.  The law also excludes retired annuitants working for governmental entities

What is Required of California Employers Under the New Paid Sick Leave Law?

The new law went into effect July 1, 2015.  California employers are now required to track all accrued and used paid sick leave time for each employee, or include these under existing “fair paid time off” policies.  You must make appropriate additions to the employee handbook regarding the paid sick leave policies of your company and compliance with the California Paid Sick Leave Law.

In addition California employers are required to provide sick leave in the form of a “block grant” or an accrual method over time based upon hours or days worked.  Accrued sick leave must be appropriately displayed on the employee’s pay stub in a method that conforms with requirements of the law.

No Accrual/Up Front Policy or Accrual Method

There are two methods of compliance with the California Paid Sick Leave Law:  “No Accrual/Up Front” and “Accrual.”  The no accrual/up front method basically provides 3 days of sick leave at the beginning of a year, and eliminates the need to accrue or carry-over hours earned.  The accrual method assigns a paid hour of sick leave for a unit of hours or days worked.  For example, for every 40 hours worked you earn 1 hour of sick leave.  The leave is “accrued” as employment passes.  Unused sick leave may be carried over year-to-year, but California employers are only required to provide 3 days or 24 hours of sick leave each year.

It is important to understand that there is a legal distinction, under law, between “accrual”, “carry-over” and “use.”  Employers may “cap” the paid sick leave benefit at 3 days if they choose to do so.  If paid sick leave is capped at 3 days, it will not matter how much leave is accrued.  If hours from a previous year are carried over, the employer may still cap the use of paid sick leave to 24 hours or 3 days of work each year.

It is important to note that other strategies for providing leave to employees, such as the provision of 5 days to be used for vacation or illness will in all likelihood fulfill your obligations under the law.  The law is designed to ensure that all California employers provide 3 paid sick leave days to each employee, in one format or another, each year based upon the anniversary of their hire date.

Contact the Experienced Employer Focused Attorneys at the Watkins Firm

If you are a California employer, and you have questions about employment policies, procedures, employee handbooks, or application of the California Paid Sick Leave Law, we invite you to contact us, or call 858-535-1511 for a comprehensive and complimentary consultation.