Saturday, January 3, 2015

Mandatory Paid Sick Leave

One of the new laws for 2015 is AB 1522 which came out of the Healthy Workplaces and Family Act of 2014, and requires almost all employers, regardless of size to offer Paid Sick Leave to their employees. This must be in place by July 1, 2015 or employers will be subject to fines and possible legal action. It applies to almost all employees both full time, part time, exempt, and non-exempt. The only exceptions are for Union employees (as long as their contract includes Sick Pay), some state providers of in-home care, and some air carrier employees.

Many employers already have a leave benefit which includes Sick Pay. These plans should be reviewed to make sure they comply with the new requirements.

Minimum Sick Pay Requirements

- Must provide no less than 24 hours or 3 days of sick pay a year.
- Can be used for the employee or a dependent family member. May also be used if employee is a victim of domestic violence, sexual assault, or stalking.
- Carry-over provision allows an employee to have paid sick days available at the start of a new year.
- Employers can cap the total amount of sick time at 48 hours/6 days a year.
- Accrual rate is 1 hour for every 30 hours worked. Overtime also counts towards accrual.
- Employers may require employees to complete 90 days of employment before sick pay is granted, however accrual begins on the first day of employment.
- Sick pay is not paid out upon termination, unless the employer has a PTO plan where sick and vacation are lumped together.

Information for this post was obtained from Cal Chamber.