As of January 1, 2024, California’s paid sick leave law requirements will expand. The California Department of Industrial Relations (“DIR”), which is tasked with enforcing the paid sick leave law, just released new guidance regarding the recent changes to the law.
Some of the key provisions of the law that the DIR clarified include:
- Frontloaded Leave:
- Currently, employers have the option of complying with the California Paid Sick Law by either: (1) implementing an accrual method with a minimum accrual rate (discussed below); or (2) frontloading the greater of 24 hours or three (3) days of paid sick leave at the beginning of each year of employment, calendar year, or 12-month period. Employers who choose to frontload paid sick leave will now be required to frontload the greater of 40 hours or five (5) days of paid sick leave each year as of January 1, 2024.
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- Employers that frontload paid sick leave once a year must provide the greater of either five (5) days or 40 hours of paid sick leave. For employees who regularly work shifts (i.e., days) that are longer than eight (8) hours, the employer will need to provide such employees with five (5) days leave, which will be more than 40 hours. Conversely, if employees regularly work less than eight (8) hours (e.g., part-time employees), the employer will need to provide such employees 40 hours, even if that would be more than five (5) days’ work for the employee based on their regular schedule.
- Employers that frontload paid sick leave are required to do so at the beginning of each year of employment, calendar year, or 12-month period. Prior to January 1, 2024, the minimum amount of paid sick leave that could be frontloaded annually by an employer was the greater of three (3) days or 24 hours. For employers that frontloaded the greater of three (3) days or 24 hours of paid sick leave after January 1, 2023, the DIR guidance states that the employer has two options to comply with the new law:
- the employer can frontload the greater of two (2) days or 16 hours of paid sick leave on January 1, 2024; or
- the employer can change the annual date that paid sick leave is frontloaded to the beginning of the calendar year, and frontload the greater of five (5) days or 40 hours of paid sick leave on January 1, 2024.
- Accrued Leave:
- Employers continue to have the option to implement an accrual policy for paid sick leave instead of frontloading the full amount each year. An accrual policy is one where employees earn sick leave over time, with the accrued time carrying over in each year of employment. In general, employees under an accrual plan must earn at least one (1) hour of paid sick leave for each 30 hours of work (i.e., the 1:30 schedule). If employers adopt or keep other types of accrual schedules, the alternate accrual schedule must result in an employee having at least three (3) days or 24 hours of accrued sick leave or paid time off by the 120th calendar day of employment and at least five (5) days or 40 hours by the 200th calendar day of employment.
- For employers that provide paid sick leave to employees on an accrual basis, the minimum cap on sick leave accrual must be increased from the six (6) days or 48 hours to 10 days or 80 hours, effective January 1, 2024.
- Capping Leave:
- Employers that have policies capping employee’s use of accrued sick leave at the greater of three (3) days or 24 hours per year must amend those policies no later than by January 1, 2024, to permit employees to use at least the greater of five (5) days or 40 hours of paid sick leave each year.
- Seasonal Employees:
- The DIR also provides guidance regarding a employer’s obligation to reinstate sick leave for seasonal employees. The updated FAQs provide the example that if an employee only works 60 days for an employer, but returns within one year of separation for another 60 day period, the seasonal employee’s accrued and unused sick leave must be restored.
Additionally, employers that are subject to a local paid sick leave ordinance may need to provide paid sick leave benefits that are more generous than those required under the new law. In the event of a conflict between the California Paid Sick Leave law and a local paid sick leave ordinance, the provision that is more favorable to the employee applies.
These policies apply to both full time and part time workers who are not covered by a Collective Bargaining Agreement that: (1) Expressly provides for the wages, hours of work, and working conditions of employees; (2) Expressly provides paid sick days or a paid leave or paid time off policy that permits the use of sick days for those employees; (3) Contains final and binding arbitration of disputes concerning the application of its paid sick days provisions, and; (4) Contains premium wage rates for all overtime hours worked, and regular hourly rate of pay of not less than 30 percent more than the state minimum wage rate. (i.e., $20.80 per hour on January 1, 2024, when the minimum wage increases to $16.00 per hour).
It is important that employers ensure their paid sick leave policies comply with the new requirements. LCW will have an updated California Paid Sick Leave policy available on the Liebert Library. Access to the Liebert Library is included for all nonprofit consortium members.
If you have questions about implementing the amendments to the California Paid Sick Leave law, please contact our Los Angeles, San Francisco, Fresno, San Diego, or Sacramento office.
