With the signing of the legislation mandating that employers provide employees with paid sick leave starting July 1, 2015, many employers are questioning what options they have to comply with the new law and how existing or newly adopted employer policies will coordinate with this new mandate.
The law (AB 1522) provides employers with three options:
- Use the statutory mandated accrual method, which requires that an employee earn one hour of paid sick leave for every 30 hours worked. Accrual can be capped at six days. Accrued unpaid sick leave must be carried over to the following year.
- The second option for providing paid sick leave is a “front loading” employer policy that provides an employee with at least three days or 24 hours of paid sick leave, paid leave, or paid time off at the beginning of each year. Under a front loading policy, an employee does not accrue leave during the year, as the employee receives all of the paid sick leave or paid time off on the first day of the year. Under this option, an employer does not have to track the employee’s hours for accrual and
does not have to carry over any unused paid sick leave. - The third option is an employer policy that provides an employee with at least three days or 24 hours of paid sick leave in a 12-month period, year of employment, or calendar year. Under this option, an employer can determine the accrual rate or method, so long as the annual amount provided to all employees is at least three days or 24 hours of paid sick leave, paid time off, or other paid leave. Specifically, Labor Code Section 246 (e)(2) was amended into the bill at the end of session to address
employers’ concern that although they generally provide at least three days of paid time off or paid sick leave each year to their employees, the accrual method may not be on an hourly basis.
Complicated? You bet! Possibility that you may unintentionally break the law and be exposed to strict penalties? Higher than usual. What you can do about it?
Plan ahead, obtain appropriate advice or training in how to set up legally-complaint sick-leave program, and take action in a timely manner to amend your employee benefit program.
This should of course include modification to your Employee Manual … or, if you don’t have one, at least include a memo on this requirement to give to each employee.
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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