Executive Summary
Overview: As we have previously reported, San Diego has passed an Implementing Ordinance which amends the current San Diego sick leave law. Our sick leave toolkit has been updated based on the Implementing ordinance.
Coverage: With limited exceptions, persons are entitled to benefits under the ordinance if they perform at least two hours of work within the geographic boundaries of the city in one or more calendar weeks of the year.
Effective Date: This ordinance passed following a referendum vote on June 7 and was scheduled to go into effect immediately following certification of the election results. The certification process has concluded and the effective date of the ordinance was July 11, 2016. A separate implementing ordinance was also passed which amended certain provisions of the original ordinance. The Implementing ordinance will be effective as of September 2, 2016.
Action Required: As indicated above, our Sick Leave Toolkit, available on FormSource in the Leave and Return to Work section, has been updated based on the Implementing Ordinance. Specifically, questions 14, 17 and 21 have been updated and a new model policy is available. We recommend that you review the FAQs and consider adopting the model policy.
The New Implementing Ordinance
The new ordinance makes the following changes to the original ordinance:
- Cap on Accrual - Allows employers to cap an employee’s total accrual of sick leave at 80 hours.
- Front Load Option - Allows employers to front load no less than 40 hours of sick leave to an employee at the beginning of each benefit year. Front loading at least 40 hours of leave each benefit year excuses an employer from the accrual and carryover provisions of the Ordinance.
- Employee Notice - Instead of an employer’s name, the amendments require notice of the employer’s legal name and any fictitious business name. The notice must also include information explaining how employers satisfy the law’s requirements, including their accrual method. Additionally, the notice language has been revised to require it be in English and any employee’s primary language if spoken by at least five percent of employees at the workplace and if the county registrar of voters provides translated ballot materials in that language.
Note that under the original law, notice was to be provided at the time of hire or by July 11, 2016, whichever was later. The new Implementing Ordinance requires notice to be provided at the time of hire or by October 1, 2016, whichever is later. For employers that already provided notice, the amendments appear to require that revised notices be provided by October 1, or, at the very least, that notice of newly-required information be provided. Model notices are available on the city website but appear to require updating based on the new Implementing Ordinance. Click here to view: https://www.sandiego.gov/treasurer/minimum-wage-program. We will notify clients when the new notice is available.
- Enforcement - Clarifies the enforcement process including a civil penalty cap for employers with no previous violations.
As always, please contact your Human Resources Business partner if you have questions.