If You Have Employees, even Household – THIS MEANS YOU! READ ON…
A new law effective July 1, 2015 requires California employers to provide paid sick leave benefits to their employees, including part time and temporary employees.
We encourage you to seek guidance from legal counsel experienced in employment practice matters to review your company’s compliance with the requirements of the new law and to assist you if revisions to your policies and procedures should be made.
Here is the “nutshell” version that hopefully will encourage your follow up as appropriate.
Who is eligible?
Employees who work at least 30 days in a year are eligible to receive paid sick leave. Employees can begin using accrued sick leave once they have worked for an employer for 90 days. To avoid the administrative hassles of the accrual and carryover requirements, an employer can make three days of paid sick leave available to each employee at the beginning of each year.
Who is not eligible?
Certain employees covered by collective bargaining agreements, certain individuals employed by air carriers, and employees of the California In-Home Supportive Services Program are not eligible to receive paid sick leave.
How is sick leave accrued?
Employees will accrue one hour of paid sick leave for every 30 hours worked. Paid sick leave must carry over from year to year, but employers can place a cap on accrual of 48 hours (or six days).
How is sick leave used?
Employers can limit an employee’s use of sick leave to 24 hours (or three days) per year. Employers can also require employees to take sick leave in at least two hour increments, but not more. Employers do NOT need to pay out accrued sick leave when an employee leaves the company, however if the employee is rehired within the year, accrued sick leave must be reinstated.
Will my current PTO plan qualify?
Maybe. Check out the website below for additional information and by all means, consult with your HR professional if you currently have a PTO plan in place.
What recordkeeping is required?
The amount of available sick leave must be recorded on each paystub. Employers must keep records of sick leave accrual and use for three years. A sick leave poster, available from the California Labor Commissioner, must be displayed at the workplace.
Additional information and resources are available on California’s website under the Division of Labor Standards Enforcement at http://www.dir.ca.gov/dlse/ab1522.html
Document dated 06/19/2015