By now most California employers know about the new Healthy Workplace Healthy Family Act (AB 1522). The law takes effect July 1 and provides all employees in the state (full and part time) the opportunity to earn paid sick leave. There are complicated rules attached to the law, but there are also options that may simplify the change for some employers.
For example, the law provides that all employees who meet the minimum time employed will accrue paid sick leave at the rate of one hour for every 30 hours worked. Employers can limit annual use, but employees can earn more than the limit and can carry some time forward from year to year.
But there is a simple alternative: an employer complies if every employee begins the year with 24 hours or three days of available leave. Whatever they don't use is gone, but they start the following January with 24 hours or three days. For some employers, this simple plan avoids complex rules concerning accrual caps and carryover.
For other employers who already have a PTO policy that meets the minimum sick leave requirements, but only for full time employees, the "three-day plan" allows them to give part-time employees the required sick leave without opening up all of the PTO policy to part timers.
There are some provisions in the new law that may take employers by surprise:
1 All of an employee's paid sick leave can be used for any of the following purposes:
• The employee's own illness or injury;
• The Illness or injury of an employee's parent, child, spouse, registered domestic partner, grandparent, grandchild or sibling.
• Parent and child includes one not naturally related but who is (or was) in a "loco parentis" relationship. This is a broad category.
• Sick leave can be used for preventive care such as flu shots.
• Sick leave can be used for certain absences resulting from domestic violence, sexual assault or stalking. The time off is already protected, but now sick leave can be used to pay for it.
2 Employers whose sick leave policy already complies with the new law must still provide a notice to employees about the new law. An optional form is available on the California DLSE website.
3 The employer is permitted to limit annual use to "three days or 24 hours" which means that an employee who works six-hour days can use up to 24 hours in a year, which is more than three days for that employee; and an employee who works 10 hour days can use three days of sick leave in a year, which is more than 24 hours.
4 The employee does not have to call in before being absent! An employee can give notice in writing or orally as soon as practicable, which in some cases will be after the absence.
5 The employer can't require employees to find their own replacements.
6 The hourly rate of sick pay is not just based on base pay, for example, employees who earn commissions are entitled to be paid sick leave based on their average compensation over the previous 90 days, divided by their hours.
7 Employers who allow "unlimited" sick leave (yes, it's a thing) will have to start tracking sick leave accrual and use, even though they don't limit it.
Make sure you know the rules that apply to your business before July 1. When in doubt, call your employment lawyer for advice.
Storrow can be reached at [email protected].
For example, the law provides that all employees who meet the minimum time employed will accrue paid sick leave at the rate of one hour for every 30 hours worked. Employers can limit annual use, but employees can earn more than the limit and can carry some time forward from year to year.
But there is a simple alternative: an employer complies if every employee begins the year with 24 hours or three days of available leave. Whatever they don't use is gone, but they start the following January with 24 hours or three days. For some employers, this simple plan avoids complex rules concerning accrual caps and carryover.
For other employers who already have a PTO policy that meets the minimum sick leave requirements, but only for full time employees, the "three-day plan" allows them to give part-time employees the required sick leave without opening up all of the PTO policy to part timers.
There are some provisions in the new law that may take employers by surprise:
1 All of an employee's paid sick leave can be used for any of the following purposes:
• The employee's own illness or injury;
• The Illness or injury of an employee's parent, child, spouse, registered domestic partner, grandparent, grandchild or sibling.
• Parent and child includes one not naturally related but who is (or was) in a "loco parentis" relationship. This is a broad category.
• Sick leave can be used for preventive care such as flu shots.
• Sick leave can be used for certain absences resulting from domestic violence, sexual assault or stalking. The time off is already protected, but now sick leave can be used to pay for it.
2 Employers whose sick leave policy already complies with the new law must still provide a notice to employees about the new law. An optional form is available on the California DLSE website.
3 The employer is permitted to limit annual use to "three days or 24 hours" which means that an employee who works six-hour days can use up to 24 hours in a year, which is more than three days for that employee; and an employee who works 10 hour days can use three days of sick leave in a year, which is more than 24 hours.
4 The employee does not have to call in before being absent! An employee can give notice in writing or orally as soon as practicable, which in some cases will be after the absence.
5 The employer can't require employees to find their own replacements.
6 The hourly rate of sick pay is not just based on base pay, for example, employees who earn commissions are entitled to be paid sick leave based on their average compensation over the previous 90 days, divided by their hours.
7 Employers who allow "unlimited" sick leave (yes, it's a thing) will have to start tracking sick leave accrual and use, even though they don't limit it.
Make sure you know the rules that apply to your business before July 1. When in doubt, call your employment lawyer for advice.
Storrow can be reached at [email protected].