Governor Jerry Brown signed into law AB 1522, a measure that mandates that employees, who work 30 or more days in a year in California, earn a minimum of three paid sick days (24 hours) per year. The law, named the Healthy Workplaces, Healthy Families Act of 2014, applies to both full-time and part-time workers and takes effect on July 1, 2015.
California now joins Connecticut as the only two States in the country that requires paid sick leave for part-time employees. This new law will provide paid sick time to approximately 6.5 million California part-time workers who had no paid sick leave benefits prior to this law.
Employers with at least one employee, who works more than 30 days in a year in California, must provide up to 24 hours of paid sick leave in a calendar year to current and new employees.
The new law excludes certain types of employees:
1. An employee covered by a valid collective bargaining agreement if the agreement expressly provides for paid sick days or a paid leave or paid time off policy that permits the use of sick days for those employees;
2. An employee employed by the State or any political subdivision (city, county, etc.) and
3. A provider of in-home supportive services
Here are a few highlights on some of the noted provisions of this new law:
• An employee accumulates paid sick days at the rate of one hour per every 30 hours worked to a maximum of 24 hours per year.
• Exempt employee’s sick time is based on the lesser of their normal work schedule or a 40-hour workweek.
• An employee can use this paid sick days after being employed for 90 days, after which day the employee may use paid sick days as they are granted.
• These paid sick days carry over to the following year of employment, however, the employer can limit an employee’s use of paid sick days to 24 hours or three days in each year of employment. No accrual or carry over is required if the full amount of sick leave (24 hours) is received at the beginning of each year.
• An employer is not required to provide additional paid sick days to comply with this new law if the employer already has a paid leave policy or paid time off policy that makes available an amount of leave that may be used for the same purposes and under the same conditions as specified in the new law, and their policy does either of the following:
(1) Satisfies the accrual, carry over, and use requirements of this section, and
(2) Provides no less than 24 hours or three days of paid sick leave, or equivalent paid leave or paid time off over a 12-month basis.
• An employer can cap the sick day accrual at 48 hours or 6 days, provided that it does not otherwise limit the employee’s rights to accrue and use paid sick leave.
• An employer is not required to provide compensation to an employee for accrued, unused paid sick days upon termination, resignation, retirement, or other separation from employment.
• An employer must provide written notice to an employee that sets forth the amount of paid sick leave available, or paid time off leave an employer provides in lieu of sick leave. This notice can be provided on an itemized wage statement or in a separate written notice provided to the employee with his/her wage statement.
• An employer must display a poster in a “conspicuous place” containing information about the accrual and use of sick days. This poster will be made available free to employers from the Labor Commission.
Eileen has practiced HR for over 30 years and has served in both large companies and boutique companies, including Disney, Hasbro, and Umpqua Bank. She currently serves on the board of directors for the EDD/EAC as well as the NCHRA. A Bay Area native, Eileen enjoys visiting Lake Tahoe, reading, and spending time with her family.