California increases Paid Sick Leave requirements

Effective January 1, 2024, CA employers must increase the amount of paid sick leave ("PSL") provided to employees to 40 hours (5 days).

Let's review current paid sick leave requirements:

Employers must provide a minimum of 24 hours (3 days) off every year for full-time, part-time, and temporary employers who have:

• Worked for the same employer for at least 30 days in a year in California, and

• Completed a 90-day employment period before taking any paid sick leave.

Employers may choose to provide all of the hours at once (front loading method), or using an accrual plan based off of hours worked, with at least one hour of PSL accruing per 30 hours worked.

What's changing on January 1, 2024?

The new law will require California employers to increase PSL provided to employees to a minimum of 40 hours or 5 days per year. Employers using the standard or alternate accrual methods must offer at least 24 hours of PSL by the 120th calendar day of employment or each calendar year and at least 40 hours of PSL by the 200th calendar day of employment or each calendar year. The law will still cover all full-time, part-time, and temporary employees, but will now include employees who are part of a collective bargaining agreement as well.

Here's a deeper dive into how the new law affects each method of providing sick leave:

Standard accrual method

Employers using the standard accrual method (1 hour of PSL per 30 hours worked) must offer at least 24 hours of PSL by the 120th calendar day of employment or each calendar year. Employers who use the accrual method are allowed to cap the accrual of PSL to 10 days or 80 hours.

Alternate accrual method

Under the new law, employers who use an alternate accrual method must provide "no less than 40 hours of accrued paid sick leave or paid time off by the 200th calendar day of employment or each year, in each 12-month period" – meaning employees must be provided with the full 5 days or 40 hours of PSL within 6 months of employment.

Frontloading method

Employers who provide the 5 days or 40 hours of PSL up front at the beginning of each year will not be required to allow carryover of unused PSL. Employers who do choose to frontload PSL in 2024 must ensure that their payroll providers provide the full 40 hours beginning in 2024.

**Bottom line: Update your PSL policy!**

Regardless of the method you use to provide PSL to your employees, you have less than 3 months to ensure your policy complies with increased requirements. Now's the time to:

• Update your handbook

• Order new workplace posters

• Communicate any policy changes to your payroll provider

• Include an updated Notice to Employee in your new hire packet (a revised form is not yet available from the CA Civil Rights Department)

If you need assistance complying with the upcoming policy changes, let us know!

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