In the recent case of Wood v. Kaiser Foundation Hospitals, the Supreme Court ruled that employers may be sued to enforce California’s sick pay statute under the Healthy Workplaces Families Act of 2014 through the Private Attorneys General Act of 2004 (“PAGA”).
Before this decision, employees could not bring sick pay claims as a private right of action Now, employers can expect to start receiving many such claims.
Employers need to scrupulously comply with the applicable law.
All California employers, regardless of their size, must provide Paid Sick Leave:
- Option 1: The Accrual Method – At the rate of one hour for every 30 hours worked; or
- Option 2: The Frontload Method – Provide your eligible employees with 24 hours or three days of paid sick leave at the beginning of each fiscal year.
Paid Sick Leave must be paid at the “regular rate of pay” (which is different that the employee’s hourly rate). Attorneys already believe this will be a heavily litigated issue for anyone paying nondiscretionary bonuses, commissions, shift premium, etc.
This requirement applies to all employees working in California — whether part-time or full-time, temporary or permanent, exempt or non-exempt — with limited exceptions.
Paid Sick Leave can be used for the employee’s medical needs, the medical needs of specified family members, or to obtain legal relief, medical attention or other services if the employee is a victim of domestic violence, sexual assault or stalking.
Employers may cap the amount of Paid Sick Leave hours an employee can accrue to 48 hours or 6 days per year and can limit the amount of Paid Sick Leave that can be used to 24 hours or 3 days per year.
Please note, however, many localities have their own Paid Sick Leave with which employers must also comply.
Ensure your company’s payroll is set up to pay sick hours at the regular rate of pay and consult with your employment attorney to figure out what that actually is!
The information presented is not intended to be, and does not constitute, “legal advice.” Because each situation varies, and only brief summary information is provided here, you should not use this information as a basis for action unless you have independently verified with your own counsel that it applies to your particular situation.
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