California paid sick leave: what employers need to know

Under California's Healthy Workplace Healthy Family Act (AB 1522), any California employee who works 30 or more days within a year is entitled to paid sick leave. The law applies to all California employees, full-time, part-time, and temporary alike. For every 30 hours worked, an employee accrues one hour of paid sick leave. Accrual begins on the first day of employment.

Who's covered

Almost everyone. There are narrow exclusions, employees covered by qualifying collective bargaining agreements, In-Home Supportive Services providers, and certain employees of air carriers, but the vast majority of California workers fall under the law.

How accrual works

For an employee working 40 hours a week for 48 weeks a year (assuming four weeks off), that's roughly 64 hours, eight days, of paid sick leave per year. Before anyone plans an eight-day vacation, note that there are limits on usage. An employer can cap the amount of paid sick leave an employee uses to 24 hours or three days per year, even though accrual continues.

Unused sick leave can be carried over to the next year, capped at 48 hours or six days. So the bank can grow over time, but the annual usage limit remains.

What employers must do

Failing to comply carries penalties, fines up to $10,000, plus the risk of a private claim by the employee. Ignorance of the law is no defense. Employers must:

• Post notice of the law in the workplace and provide it at hire
• Reflect sick leave accrual on each paycheck
• Allow sick leave on reasonable request

Alternatives to accrual

Employers don't have to use the accrual method. Two other approaches are allowed:

• Front-load. Provide all sick leave at the beginning of the year. Cap at three days.
• PTO method. Combine sick leave into a single Paid Time Off bank that meets or exceeds the statutory minimum.

The bottom line: employers must provide at least 24 hours / 3 days of paid sick leave per year, regardless of method. Talk to your attorney about which approach fits your workforce and recordkeeping practices.