California Expands Paid Sick Leave
Last month Governor Newsom signed a new bill that significantly expands paid sick leave (PSL) for employees. Now, with the statewide changes coming in 2024, employers face more challenges in complying with the law. Here's a simplified overview of what you need to know about this new law and the steps to prepare for its implementation on January 1, 2024.
We are keeping track of other new laws as they are enacted and will provide an overview before the end of the year.
What Employers Need to Know
New Law Highlights:
The new law makes several important modifications to California's existing PSL law, known as the Healthy Workplaces, Healthy Families Act of 2014. These changes will apply to most employees working in California for 30 days or more per year. Here's a summary of the key modifications:
Increased PSL Entitlement: Employees will now be entitled to 40 hours (five days) of PSL annually, up from 24 hours (three days).
Accelerated Accrual: For employees using the accrual method, they must accrue 40 hours of PSL by their 200th day of employment, in addition to at least 24 hours accrued by their 120th day of employment.
Expanded Carryover: Employees can carry over up to 40 hours (five days) of unused PSL from one year to the next, compared to the previous limit of 24 hours (three days).
Quicker Access to Paid Leave: Employees will now be eligible for 40 hours (five days) of paid leave within six months of employment, down from nine months.
Increased Accrual Cap: The cap on the total accrual of PSL has been raised to 80 hours (10 days), up from 48 hours (six days).
Collective Bargaining Agreements: PSL requirements now extend to employees covered by collective bargaining agreements.
Statewide Minimums: The law supersedes any local PSL ordinances with less generous leave requirements, establishing statewide minimums.
Preparing for Compliance: The steps we recommend to take
To ensure compliance with the new law by January 1, 2024, employers should take the following proactive steps:
Review Local Ordinances: Determine if any local PSL ordinances applicable to your organization are superseded by the new law or if they remain in effect.
Update Policies and Handbooks: Revise your written sick leave policies, employee handbooks, and training materials to align with the law's requirements. Outdated language could lead to compliance issues.
Train Managers and Supervisors: Ensure that your management team is aware of the increased PSL entitlements and the changes in accrual and carryover rules that affect your workforce.
Collaborate with Payroll: Work with your company's payroll processor to ensure that accruals and frontloading allowances are accurate, and wage statements reflect employees' PSL entitlements correctly.