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San Francisco Revises Paid Sick Leave Ordinance Rules

07/01/18

Author: ADP Admin/Monday, July 2, 2018/Categories: State Compliance Update, California

On May 7, 2018, The City and County of San Francisco Office of Labor Standards Enforcement published “Rules Implementing the San Francisco Paid Sick Leave Ordinance (PSLO)”. These rules updated the initial rules that were adopted when the Paid Sick Leave Ordinance initially went into effect in May of 2007. As background, the San Francisco Paid Sick Leave Ordinance (PSLO) requires employers to provide paid sick leave to all employees (including temporary and part-time employees) who perform work in San Francisco. Employees earn 1 hour of paid sick leave for every 30 hours worked. Employers with 10 or more employees may cap an employee's sick time balance at 72 hours. Employers with fewer than 10 employees may cap an employee's sick time balance at 40 hours.

Some of the highlights of the guidance are as follows:

Covered Employees

Employees who perform work in San Francisco are covered by the Ordinance only if they perform 56 or more hours of work in San Francisco within a calendar year.
  • Employees who live in San Francisco and perform work for an employer from home, including telecommuting, are covered by the Ordinance for all hours that they perform work from home if the employee performs 56 or more hours of work in San Francisco within a calendar year.
  • Employees who travel through San Francisco and stop in the city to work (for example, to make pickups or deliveries) are covered by the Ordinance for all hours worked in the city. This includes travel within the city to and from the work site(s). This rule applies only if they perform 56 or more hours of work in San Francisco within a calendar year.
Accrual

If the number of employees fluctuates above and below 10 per week over the course of a year, OLSE will calculate business size for the current calendar year based on the average number of employees during the preceding calendar year. For new employers, OLSE will calculate business size for the current calendar year based upon the average number of employees for the first 90 days after the employer’s first employee(s) began work.

In instances where the exempt employee’s regular work week is less than 40 hours, paid sick leave accrues based upon that regular work week.

Rehires

If an employee separates from an employer before the 90th day of employment and is rehired by the employer within one year from the date of separation, all prior days of employment should be counted toward the 90 days of employment. After the rehired employee has passed their 90th date of employment, the employee may use paid sick leave as it is accrued.

Rate of Pay

If the employee is an exempt employee and no other forms of paid leave are provided, the employee’s salary must continue without deduction for sick time taken, with the time taken applied against the employee’s leave balance.

For a copy of the PSLO please click on the link provided below.

https://sfgov.org/olse/paid-sick-leave-ordinance-pslo

Coverage: Employers and Employees in San Francisco described above.

Effective: June 7, 2018.

Action Required: Update the practice and policy as described above. Also, please see our Sick Leave Toolkit for additional information, which includes Frequently Asked Questions and model sick leave policies for jurisdictions with sick leave laws. The updated Toolkit will be available on FormSource in the Leave and Return to Work section or in your Forms Library, as applicable.

As always please contact your Human Resources Business Partner if you have any questions.

This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal advice.

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