Details of new paid sick-leave law in state

California’s new paid sick-leave law takes effect July 1, but many people still have questions about its complex requirements.

The Assembly is scheduled to vote this week on a bill, AB304, that would provide some clarity and a little more flexibility around sick-leave accrual methods.

California is one of only three states, along with Connecticut and Massachusetts, that have passed laws mandating paid sick leave. At least 18 cities nationwide — including San Francisco, Oakland and now Emeryville — also require it or soon will.

An estimated 40 percent of California workers get no paid sick leave today; most will be covered by the new law. Most employers that already offer paid sick leave provide more than the minimum number of days required under the new law. But they will have to comply with new notice and recordkeeping requirements and will have to cover part-time and temporary workers if they don’t already.

Under the Healthy Workplace, Healthy Families Act of 2014, employers must provide a minimum amount of paid sick leave to any employee

who works in California for at least 30 days within a year. AB304 would clarify that an employee must work “for the same employer” at least 30 days.

There is no exemption for small employers. The law applies to full-time, part-time, temporary, salaried and hourly workers, including household employees.

The only exceptions are for employees covered by a union contract that provides comparable sick pay, In-Home Supportive Services employees, and airline flight deck or cabin crew employees who have equivalent benefits. AB304 would exempt certain public-sector retirees who are getting a government pension and have returned to work part time.

The law does not apply to freelancers or independent contractors, but does cover temporary employees from a staffing agency.

Complex rates

What makes the law “mind-boggling” is the different rates that apply to the accrual, use and banking of sick leave, said Jacqueline Breslin, a director with TriNet of San Leandro, which provides benefits and payroll services to small and midsize companies.

As an employee, you will earn or accrue at least one hour of sick leave for every 30 hours worked, starting July 1 or your first day of work, whichever is later. That works out to a little more than eight days per year for a full-time worker.

However, employers can limit your use of paid sick leave to 24 hours (three days) in one year.

Unused sick pay can be carried over to the next year, but employers can still limit you to three days per year and cap your sick-leave bank at 48 hours or six days.

Why can you earn more than you can use in a year? Presumably so that if you get sick early in the year, you have some days available.

Front-load option

Instead of the accrual method, employers can give all employees at least 24 hours (three days) of paid sick leave at the beginning of each year. Under this frontloading option, no accrual or carryover is required.

Breslin said that most Trinet clients are using the accrual method, even though it’s more compli- cated, because it aligns with their vacation accrual.

AB304 would let employers choose an alternate accrual method (other than one hour per 30 worked) as long as it meets certain requirements.

More rules

You must be in your job for at least 90 days before you can use sick leave. You will be paid for sick time at your regular hourly rate. If your pay varies, your employer will divide your total compensation for the previous 90 days by the number of hours worked and pay you that rate.

If you leave a job, your employer does not have to pay you for any unused sick days, as it does with vacation. But if you return to the same employer within 12 months, you can reclaim what you had in your sickleave bank.

You can take paid leave for you or a family member for preventive care or treatment of an existing condition or to deal with stalking, domestic violence or sexual assault. Family includes your immediate family, as well as grandparents, grandchildren, siblings and parents-in-law. Your employer cannot require you to take more than two hours of paid leave at a time.

Employers must display a poster notifying employees of the sick leave law and give written notice of their rights when hired.

Keeping records

They must show how many days of sick leave an employee has available on a pay stub or document issued the same day as the paycheck. They must keep records showing how many hours have been earned and used for three years.

If an employer provides paid time off that can be used for vacation or sick leave, it does not have to provide additional sick leave as long as it provides at least 24 hours per year that can be used for health reasons.

AB304 would clarify that if a company offers unlimited vacation or paid time off, it can satisfy the written notice requirement by indicating on the notice or pay stub that such leave is unlimited.

Employers are free to provide more than the minimum requirement.

Advance notice

Workers must notify their employer in advance that they are taking sick leave, if foreseeable. They do not have to find someone to cover for them during their absence.

The law does not state whether employers can ask employees for a doctor’s note. In a webinar, the Department of Industrial Relations said that requiring documentation could interfere with an employee’s right to take leave and employers should “be cautious” about requesting it.

If an employee works in a city with its own sick-leave ordinance, the employer must comply with whichever provisions of each law are more generous to the employee. In Emeryville, for example, an employer also must allow sick leave to be used for the care of a guide or service dog.

Employers cannot deny an employee the right to use accrued sick days, discharge or threaten to discharge, demote or suspend them for using sick leave. Employers who violate the law are subject to significant penalties.

For more information, see www.dir.ca.gov/dlse/ab1522.html.