Thursday, February 19, 2015

Mandatory Paid Leave Update

Today I went to a Labor Law Update on CA's new sick leave law. Gregory Walsh and Jennifer Phillips, two local employment law lawyers presented. Just last month I did a post on the new law, but today I learned some important information about how to look at existing leave policies with a critical eye for compliance with the new law.

Healthy Workplaces/Healthy Families Act of 2014, goes into effect July 1, 2015. However, posting and notification to employees should have taken place January 1, 2015. One of the things that stood out to me about today's talk was when Jennifer said that out of all the company leave policies she has reviewed over the last few months, none have been 100% compliant with the new law. It is not enough to offer sick pay to employees. This is a complicated law. All plans should be reviewed for compliance.

I suggest the following steps:
1. Review the current company policy on sick pay (or PTO pay). Make changes as necessary.
2. Decide how sick pay will accrue. There are 2 options. Progressive Accrual or Lump Sum.
3. Post policy and provide notice to current employees.
4. Start using the updated Notice to Employee form for all New Hires.
5. Work with payroll provider to ensure wage statement are accurately reporting employee's sick balances.

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