Updated Paid Sick Leave Laws in 2024
In a move to expand employee benefits and protections, California Governor Gavin Newsom signed Senate Bill (SB) 616 into law on October 4, 2023. This amendment to the Healthy Workplaces, Healthy Families Act (HWHFA) will bring significant changes to the state’s paid sick leave requirements. Effective January 1, 2024, employers in California will need to adjust their policies to ensure compliance with the new law. This article will provide an overview of the key amendments and their implications for employers in the state.
Increased Paid Sick Leave Entitlement
Under the existing law, employees in California are entitled to three days or 24 hours of paid sick leave per year. With the enactment of SB 616, this entitlement will increase to five days or 40 hours per year. This change aims to provide employees with additional time off for medical purposes and to care for themselves or their family members.
Accrual Methods Modified
The amendments introduced by SB 616 also impact the way employers can provide paid sick leave to their employees. Currently, employers have two options: the accrual method or the “up front” method.
Accrual Requirements
Under the accrual method, employees earn one hour of paid sick leave for every 30 hours worked. Alternatively, employers can adopt an “alternative accrual” method that meets certain minimum standards. Previously, employees had to accrue at least 24 hours or three days of paid sick leave by their 120th day of employment, with the same amount accrued each subsequent year. SB 616 modifies this requirement, increasing the minimum accrual to 40 hours or five days by the 200th day of employment, and each subsequent year.
Increased Cap on Accrual
In addition to modifying the accrual requirements, SB 616 increases the cap on accrued paid sick leave. Under the existing law, employers may cap an employee’s total sick leave accrual at 48 hours or six days. The new law raises this cap to 80 hours or ten days, providing employees with a greater accumulation of paid sick leave.
Increased Annual Usage Cap
Another significant change introduced by SB 616 is the increase in the annual usage cap for paid sick leave. Currently, employers can limit an employee’s use of paid sick leave to 24 hours or three days per year. With the new law, employees must be permitted to use at least 40 hours or five days of paid sick leave per year, giving them more flexibility to address their health needs or care for their family members.
The “Up Front” Method
The “up front” method allows employers to provide a specific amount of paid sick leave or paid time off at the beginning of each year, calendar year, or 12-month period. This method eliminates the need for accrual and carryover, as employees receive the full amount of leave upfront. SB 616 increases the minimum requirement for the “up front” method from three days or 24 hours to five days or 40 hours of paid sick leave or paid time off per year.
Employees Covered by Collective Bargaining Agreements
Previously, employees covered by a valid collective bargaining agreement (CBA) were exempt from California’s paid sick leave requirements. However, SB 616 extends certain benefits and protections under the HWHFA to non-construction industry employees covered by CBAs. To qualify for the exclusion, the CBA must allow employees to use paid leave for medical purposes, care for family members, and for victims of domestic violence, sexual assault, or stalking. Additionally, employers cannot condition the use of paid sick leave on employees finding a replacement worker, deny the use of accrued sick days, or retaliate against employees for using their accrued sick leave.
Partial Preemption of Local Ordinances
California has several local ordinances that address paid sick leave, including those in Berkeley, Emeryville, Los Angeles, Oakland, San Diego, San Francisco, Santa Monica, and West Hollywood. SB 616 partially preempts these local ordinances on various topics. For instance, employers are no longer required to compensate employees for accrued, unused paid sick leave upon separation from employment. Additionally, employers can advance leave at their discretion, and they must provide written notice of available paid sick leave on wage statements or in a separate writing. The law also establishes guidelines for calculating the rate of pay for sick leave and requires employees to provide advance notice of the need for leave when possible.
Employer Next Steps
With the effective date of January 1, 2024, employers in California must take several steps to ensure compliance with the amended paid sick leave requirements. These steps include:
Review and Revise Policies: Employers should review their current paid sick leave or paid time off policies and make any necessary revisions to align with the new law’s requirements, particularly for non-construction industry CBA employees and local ordinances. It is essential to provide employees with proper notice of any changes to their benefits.
Monitor Guidance: Employers should stay updated on any guidance provided by the Department of Industrial Relations to ensure ongoing compliance with the law.
Train Managers and HR: To ensure consistent implementation, employers should provide training to managers and HR personnel on the new requirements, including how to handle employee requests and address any potential issues.
By taking these proactive steps, employers can ensure that their policies align with the amended paid sick leave requirements and continue to provide their employees with necessary benefits and protections.
Conclusion
The amendments introduced by SB 616 bring significant changes to California’s paid sick leave requirements. By increasing the minimum accrued and used hours, extending certain benefits to employees covered by CBAs, and partially preempting local ordinances, the new law aims to enhance employee rights and standardize paid sick leave practices. Employers must review and revise their policies to comply with the amended law and provide employees with the necessary benefits and protections they are entitled to. By doing so, employers can maintain compliance and foster a healthy and supportive work environment for their employees.
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