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California

08/06/15

Author: DeadreDiggs/Thursday, July 30, 2015/Categories: California

Summary

Overview: The state of California has passed an amendment to the Healthy Workplaces, Healthy Families Act of 2014.  Significantly, the amendment provides employers with greater flexibility in drafting compliant sick leave plans and provides an option to grandfather existing sick leave or PTO plans provided certain requirements are met. 

Coverage: All employers with employees in CA (subject to narrow exceptions). 

Effective Date: The amendment is was effective immediately upon the governor’s signature earlier this month. 

Action Required:  Review the details below and contact your HR Business Partner for assistance as needed to review your policy for compliance. 

The Details

Background

As we previously reported, California passed a sick leave law requiring most employers to provide sick leave to eligible employees. Broadly stated, the law requires that employers, public or private and regardless of size, permit employees to accrue paid sick time (unless an employer chooses to frontload sick time). An employee is entitled to sick leave if the individual works, in California, for at least 30 days within a year from the commencement of employment. An employer is permitted to limit an employee’s use of paid sick leave to 24 hours or three days in each year. Any accrued, unused sick leave beyond the 24 hours or any unused, accrued sick leave must carry over from year to year. Employees can use accrued sick days beginning on the 90th day of employment. The law contained a number of ambiguities making compliance challenging.  

The Amendment

The new amendment clarifies a number of issues and generally provides employers greater flexibility to achieve compliance. The chart below provides an overview of  the key changes.  A full reading of the amendment can be accessed by clicking here, or for an overview of the key changes, click here. 

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