California expands Paid Sick Leave to 5 Days/40 Hours

California expands Paid Sick Leave to 5 Days/40 Hours

California’s Senate Bill (SB) No. 616 is now law and it amends California’s paid sick leave law to expand mandatory paid sick leave from three days or twenty-four hours to five days or forty hours.  The increased paid sick leave requirements take effect on January 1, 2024.  Here are the key points:

  • •Increased Annual Leave: Employers must now provide a minimum of 40 hours (5 days) of paid sick leave annually, which is an increase from current amount of 24 hours (3 days). Employers still may limit annual use and accrual, although at a higher level than before.

  • •Eligibility Criteria: Employees who work for 30 or more days for the employer within a year from the start of their employment are eligible for these paid sick days. Employees must earn at least one hour of paid sick leave for every 30 hours worked.

  • •Employers who use an alternative to the 1 for 30 accrual rate must ensure that employees accrue at least:
              •24 hours (3 days) by the 120th day of employment.
              •An additional 16 hours (2 days) by the 200th calendar day, for a total of 40 hours.

  • •Employers may frontload the entire paid sick leave amount, just as they may do now. Or Employers may continue providing paid sick leave at one hour for every thirty hours worked, however, if employers use a different accrual rate, employees must accrue forty hours by their 200th day of employment, in addition to accruing at least twenty-four hours of paid sick leave by their 120th day of employment.

Employers should prepare now for SB 616’s effective date by reviewing and revising paid sick leave policies to comport with the new paid sick leave requirements and accrual and usage caps.  Additional requirements apply to union employees.  Both union and nonunion employers also may wish to educate human resources and managers about employers’ new California paid sick leave obligations.

Employers with Questions on employment issues may contact Epps & Coulson, LLP.  We are here to help you plan and grow and protect your business.  Please feel free to contact Dawn at: dcoulson@eppscoulson.com.

Information contained in this Memo is intended for informational and educational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.  It is likely considered advertising.  Epps & Coulson, LLP encourages you to call to discuss these matters as they apply to you or your business.

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