All employers in the state of California must provide a minimum of 3 days paid sick leave to all employees, regardless of whether they are full or part time, starting July 1st 2015. The law affects both private and public employees. Unlike many other employment laws, there is no exemption for small businesses.
Who Is Covered?
All employees that have worked in California for 30 or more days within a year from the beginning of his/her employment will be entitled to paid sick days under the Act. Employees that are not covered by the new law are as follows:
- Employees covered by a union contract that specifically provides paid sick leave
- Construction employees covered by a valid union contract
- State provides of in-home supportive services
- Certain air carrier employees
How is Paid Sick Leave Calculated?
There are a couple ways to calculate the paid sick leave accrual. Employers can choose to allow employees to earn one hour of sick pay for every 30 hours worked, or choose to provide the full amount of leave (24 hours or three days) to the employee at the beginning of each year under an employer policy. With the first option, employees can carry over unused sick days to the next year. If employers choose to provide employees with the “lump-sum” (three days) at the beginning of the year, then the employee will not be able to carry over unused sick days.
What if I Already Have A Policy?
If the employer already has a paid time off or paid leave policy in place that meets or exceeds the minimum requirements of this Act, then they are not required to provide additional paid sick days.
What Happens When An Employee Leaves?
Good news, unlike unused vacation, sick leave under this Act does not need to be paid out and the end of employment.
Customers of CBM, please give us a call if you have any questions.
There are a few exceptions to the law and additional regulations that should be read over before this Act becomes effective on July 1st 2015. For more information on these and other details please visit CA.gov: http://www.dir.ca.gov/dlse/Paid_Sick_Leave.htm