Paid sick leave: First statewide mandate leaves many companies asking questions

Effective July 15, 2015, all California employers regardless of size will be required to provide up to three days of paid sick leave for eligible part-time and full-time employees. On Sept. 10, 2014, Gov. Brown signed the Healthy Workplaces, Healthy Families Act of 2014, which implemented this significant change. While the City and County of San Francisco passed a paid sick-leave mandate in 2006, this is the first statewide mandate.
“Any part-time or full-time employee who as of July 1, 2015, has worked in California for 30 or more days within a year from the commencement of employment is an eligible employee,” says Kara L. Arguello, an associate with Berliner Cohen. 
Smart Business spoke with Arguello and Jennifer Y. Leung, an associate at Berliner Cohen, about how the California mandate applies to certain employees and not to others.
First of all, the Act does not apply to certain employees:

  • Employees covered by a valid collective bargaining agreement that expressly provides for paid sick days, final binding arbitration of disputes concerning the application of its paid sick days provisions, premium wages rates for overtime worked and a regular hourly rate of pay of not less than 30 percent more than the state minimum wage;
  • Employees in the construction industry covered by a valid collective bargaining agreement expressly providing wages, hours for work, working conditions of employees, premium wages rates for overtime worked and regular hourly rate of pay of not less than 30 percent more than the state minimum wage;
  • Employees who work as providers of in-home supportive services; or
  • An individual employed by an air carrier as a flight deck or cabin crew member subject to federal labor laws.

For what reasons may the employees use the paid sick leave?
An employee is entitled to use the paid sick days to take care of his or her own health, including if the employee is the victim of domestic violence, sexual assault, or stalking, for diagnosis, care or treatment of an existing health condition of, or preventive care for an employee or employee’s family members.
How is the paid sick leave accrued?
Employees will accrue the paid sick leave at a rate of no less than one hour for every 30 hours worked. Accrued paid sick days shall carry over to the following year of employment, but an employer may limit the use of paid sick days to 24 hours or three days in each year of employment.
How much of the leave may employees take at a time?
Generally, employees may determine how much paid sick leave they need to use, but the employer may set a reasonable minimum increment, such as two hours.
When may workers start taking the leave?
Employees are entitled to use accrued sick days beginning on the 90th day of employment.
What if there is a paid sick leave or paid time off policy in place?
An employer is not required to provide additional paid sick days pursuant to the Act where the employer has a paid leave policy or paid time-off policy as long as the policy satisfies the requirements of the Act.
How is the paid sick leave to be paid?
The rate of pay for paid sick leave is the employee’s regular hourly wage. Payment must occur no later than the payday for the next regular payroll period after the sick leave is taken.
Upon separation, what happens to 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.
What documentation or notice of this policy must be given to employees?
An employer shall provide an employee with written notice detailing the amount of paid sick leave available, or paid time off an employer provides in lieu of sick leave, for use on either the employee’s itemized wage statement or in a separate writing. Employers must maintain at least three years of records documenting the hours worked and paid sick days accrued and used by an employee. A poster provided by the Labor Commissioner must also be displayed.
Are there penalties for failing to comply with the Act?

Employers can face administrative fines and civil penalties.

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