Important Reminder! California’s Paid Sick Leave requirements must go into effect this pay period!
January 4, 2024 4:11 pmSenate bill 616 went into affect on January 1, 2024. All employees who work in California for 30 or more days are officially entitled to at least 5 days or 40 hours of paid sick leave annually.
If you award paid sick leave as a one-time front load each year, you will need to increase the annual amount to 5 days or 40 hours. Unused sick leave may still expire at the end of each year, and current employees must receive no less than 40 hours or 5 days at the start of the new year.
Accrual: One Hour of PSL for Every 30 Hours Worked
If your employees accrue paid sick leave at this rate, which is the default method described in the law, you may continue to do so. Unused sick leave must carry over from one year to the next, and employees must now be permitted to accrue up to 80 hours or 10 days of paid sick leave. You may limit the annual usage to 40 hours or 5 days per year.
Accrual: Other Accrual Methods/Rates
If your employees accrue PSL at a different rate, such as a certain amount per pay period or per month, you may need to adjust your policy. Employers must ensure that employees accrue at least 24 hours by the 120th day of the year, and at least 40 hours by the 200th day of the year. Employees who accrue the new maximum of 5 days over the entire year will not meet these deadlines. As stated above, unused sick leave must carry over from one year to the next, and employees must now be permitted to accrue up to 80 hours or 10 days of paid sick leave. You may limit the annual usage to 40 hours or 5 days per year.
Cities/Counties with Special Sick Leave Ordinances
If your company is located in a municipality with its own paid sick leave law, such as Los Angeles or San Francisco, local and state rules will both apply, with employers needing to comply with the most generous law. A business in Los Angeles might need to increase its accrual cap but could leave it’s usage cap the same at 48 hours.
We know that keeping up with these legislative changes can be challenging, but remember you’re not alone! Sierra HR Partners is here to help you navigate the ever-changing landscape of California regulations. Please contact one our team of certified consultants if you have any questions!
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