In the last issue of LSL Outlook we provided an outline of the new California Sick Leave Law. The law left many lingering questions for employers and effective July 13, 2015, the state made amendments to the law. Below are some of the changes to the law that are important for business owners to know:
Eligibility –
Employees must work for the same employer for 30 days or more within the year to be eligible. Accrual Method – Since many companies already had sick leave accrual policies in place prior to the law the amendment gives companies accrual options. An employer may use a different accrual method other than providing one hour per every 30 hours worked, provided that the accrual is on a regular basis so that an employee has no less than 24 hours of accrued sick leave or paid time off by the 120th calendar day of employment or each calendar year, or in each 12-month period. An employer may limit an employee’s use of paid sick days to 24 hours or 3 days in each year of employment, calendar year, or 12-month period, rather than just year of employment.
Payment –
There are three methods of payment that are permitted under the amendment. (1) For non-exempt employees – can be paid at the regular rate for the workweek in which the employees uses the sick leave – regardless of whether they are working overtime. (2) For non-exempt employees, payment can be calculated by dividing the total wages (not including overtime rate) by the total hours worked in the full pay periods of the prior 90 days of employment. (3) For exempt employees, payment can be calculated in the same manner as regular wages are calculated.
For more information about the sick leave policy and the amendments made to the law please contact your LSL advisor at 714-672-0022.
