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Paid Sick Leave Changes

Paid Sick Leave Changes Changes to California's Paid Sick Leave Law went into effect on July 13th when Governor Jerry Brown signed Assembly Bill 304 into law.  
 
 
Changes include:
  • Rate of Pay Calculation                                                                                                    
    • For the purposes of this section, an employer shall calculate paid sick leave using any of the following calculations:                                                                
      • Paid sick time for nonexempt employees shall be calculated in the same manner as the regular rate of pay for the workweek in which the employee uses paid sick time, whether or not the employee actually works overtime in that workweek.
      • Paid sick time for nonexempt employees shall be calculated by dividing the employee's total wages, not including overtime premium pay, by the employee's total hours worked in the full pay periods of the prior 90 days of employment.
      • Paid sick time for exempt employees shall be calculated in the same manner as the employer calculates wages for other forms of paid leave time.
  • Alternative Accrual Methods                                                                                           
    • An employer may use a different accrual method, other than providing one hour per every 30 hours worked, provided that the accrual is on a regular basis so that an employee has no less than 24 hours of accrued sick leave or paid time off by the 120th calendar day of employment or each calendar year, or in each 12-month period.                                      
    • Front Load Method                                                                                                         
      • An employer may lend paid sick days to an employee in advance of accrual, at the employer's discretion and with proper documentation.
    • Reinstatement of Prior Accrued Time                                                                             
      • If an employee separates from an employer and is rehired by the employer within one year from the date of separation, previously accrued and unused paid sick days shall be reinstated. The employee shall be entitled to use those previously accrued and unused paid sick days and to accrue additional paid sick days upon rehiring, subject to the use and accrual limitations set forth in this section. An employer is not required to reinstate accrued paid time off to an employee that was paid out at the time of termination, resignation, or separation of employment.
    • Recordkeeping                                                                                                                   
      • An employer shall keep for at least three years records documenting the hours worked and paid sick days accrued and used by an employee, and shall allow the Labor Commissioner to access these records pursuant to the requirements set forth in Section 1174. An employer shall make these records available to an employee in the same manner as described in Section 226. If an employer does not maintain adequate records pursuant to this section, it shall be presumed that the employee is entitled to the maximum number of hours accruable under this article, unless the employer can show otherwise by clear and convincing evidence.
    • Notice for Unlimited Sick Leave or Paid Time Off Policies                                             
      • An employer shall provide an employee with written notice that sets forth the amount of paid sick leave available, or paid time off leave an employer provides in lieu of sick leave, for use on either the employee's itemized wage statement described in Section 226 or in a separate writing provided on the designated pay date with the employee's payment of wages. If an employer provides unlimited paid sick leave or unlimited paid time off to an employee, the employer may satisfy this section by indicating on the notice or the employee's itemized wage statement "unlimited."
    • Eligibility                                                                                                                         
      • An employee who, on or after July 1, 2015, works in California for the same employer for 30 or more days within a year from the commencement of employment is entitled to paid sick days as specified in this section.
    • Use                                                                                                                                     
      • An employee shall be entitled to use accrued paid sick days beginning on the 90th day of employment, after which day the employee may use paid sick days as they are accrued.
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