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California Mandatory Sick Pay Information

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Special Notice: Mandatory Sick Pay Starting July 1, 2015

NEW RULES FOR CALIFORNIA EMPLOYERS (This text is intended as an overview, therefore simplified. Additional requirements may apply)

An employee who, on or after July 1, 2015, works in California for 30 or more days within a year from the beginning of employment is entitled to paid sick leave. There is no exemption for small employers. If you have 1 or more employees, part time or full time this new law affects you.

3 METHODS AVAILABLE FOR AWARDING SICK PAY

1.  Accrual - Paid sick leave accrues at the rate of one hour per every 30 hours worked, paid at the employee’s regular wage rate. Accrual shall begin on the first day of employment or July 1, 2015, whichever is later.  Accrued paid sick leave shall carry over to the following year of employment and may be capped at 48 hours or 6 days.  Employers may limit use to 24 hours/3 days per year.  Employers may choose fiscal year July-June, a calendar year, or use anniversary date, as the start of the year.

2.  Grant – (also called “advance” or “up-front’) Provide the full amount of 24 hours/3 days up front at the beginning of each year, no accruals required, no carryovers necessary, and employers may choose fiscal year July-June, a calendar year, or use anniversary date as the start of the year.

3. PTO/Paid Sick Leave policy in lieu of Paid Sick Leave -  If an employer has a paid sick leave, paid leave or paid time off policy (PTO) that provides no less than 24 hours or three days of paid leave or paid time off, it may satisfy the new Mandatory Sick Pay requirement.  The PTO policy must satisfy all paid sick leave requirements (accrual, use, carryover, etc.) and should specify that the PTO may be used for any reason, including new law. 

USING SICK PAY

• An employee may use accrued paid sick days beginning on the 90th day of employment.

• An employer shall provide paid sick days upon the oral or written request of an employee for themselves or a family member for the diagnosis, care or treatment of an existing health condition or preventive care, or specified purposes for an employee who is a victim of domestic violence, sexual assault, or stalking.

• An employer may limit the use of paid sick days to 24 hours or three days in each year of employment.

Retaliation or discrimination against an employee who requests paid sick days or uses paid sick days or both is prohibited. An employee can file a complaint with the Labor Commissioner against an employer who retaliates or discriminates against the employee.

POSTING/NOTIFICATION/PENALTIES

·         Employers must post notice, (the labor posters we provided you satisfy the posting requirement.)

·         Provide individual notice on hire (sample enclosed)

·         provide information each time wages are paid (check stub or separate notice)

• Penalties for violations of: posting, paid sick days withheld, or other violations range from $50 to an aggregate penalty of $4,000.

Personalized Business Service is here to help you with this issue. There is a one page checklist that we need you to complete and return to us ASAP. This checklist, along with a downloadable copy of this page and a sample employee notice can be downloaded by clicking HERE.

When we receive your preferences, we will institute them immediately to maintain your company’s compliance with this new California State law. If you find yourself still needing further information, you may call your account representative here at PBS or visit the State of California website at http://www.dir.ca.gov/dlse/paid_sick_leave.htm