SB 616 – Amends California’s Paid Sick Leave Law

Senate Bill 616 (SB 616) makes several changes to employee paid sick leave entitlements under California’s Paid Sick Leave law.  These changes include those set forth below, and take effect on January 1, 2024.

Modifies the “Full Amount” of Paid Sick Leave Method to be Frontloaded

Under existing law, employers who frontload the “full amount” of paid sick leave at the beginning of each year of employment, calendar year, or 12-month period are not required to allow employees to accrue or carryover unused paid sick leave to the following year.  Under existing law, the “full amount” of paid sick leave is 24 hours (or 3 days).  SB 616 increases the “full amount” of paid sick leave to 40 hours (or 5 days).

Modifies the Paid Sick Leave Accrual Method

Under existing law, employers who adopt an accrual method for paid sick leave must permit employees to accrue paid sick leave under one of the following methods:

1. At a standard accrual rate of not less than one hour per every 30 hours worked beginning at the commencement of employment; or
2. At an alternate accrual rate, established by the employer, as long as accrual is on a regular basis so that the employee has no less than 24 hours (or 3 days) of accrued paid sick leave by the 120th calendar day of employment, or each calendar year or 12-month period.

SB 616 modifies this alternate accrual rate to require that, in addition to the requirement set forth above, the rate must be such that employees also accrue no less than 40 hours (or 5 days) of paid sick leave by the 200th calendar day of employment, or each calendar year or 12-month period.

Increases the Minimum Accrual Cap

Under existing law, the minimum accrual cap for paid sick leave is 48 hours (or 6 days).  SB 616 increases this minimum accrual cap to 80 hours (or 10 days).

Increases Minimum Limit for Use of Accrued Paid Sick Leave

Under existing law, accrued paid sick leave must carry over to the following year of employment, but an employer is permitted to limit an employee’s use of accrued paid sick leave to a minimum of 24 hours (or 3 days) in each year of employment, calendar year, or 12-month period.

SB 616 increases the minimum limit that an employer may impose on an employee’s use of accrued paid sick leave to 40 hours (or 5 days) in each year of employment, calendar year, or 12-month period.

Expressly States Certain Provisions Preempt Local Ordinances

SB 616 expressly states that certain provisions of Labor Code Section 246 preempt any local ordinance to the contrary.  To the extent California’s Paid Sick Leave law is more favorable to an employee than a local sick leave ordinance, employers must follow California state law.

(As relevant to private schools, SB 616 amends Section 245.5 of the Labor Code.)