December 15, 2023

DLSE Issues FAQ On California’s Revised Paid Sick Leave Law

As of January 1, 2024, significant amendments to California’s Paid Sick Leave Law will come into effect, impacting employers and employees across the state. The Department of Industrial Relations (DIR) has released a comprehensive FAQ regarding the amendments to the state’s Paid Sick Leave Law, also known as the Healthy Workplaces, Healthy Families Act.

Main Changes and Implementation Guidelines:

  1. Increase in Sick Leave Entitlement: Starting January 1, 2024, the minimum paid sick leave entitlement for employees in California will be 40 hours or five days per year. This is a notable increase from the previous cap of 24 hours or three days.
  2. Adaptation to Various Work Schedules: The law caters to diverse work schedules. For instance, an employee working 10-hour days would be entitled to a minimum of 50 hours of paid sick leave, while an employee working 6-hour days and taking five days of sick leave would have 10 hours remaining.
  3. Eligibility Criteria: Most employees who work at least 30 days for the same employer within a year in California are eligible for paid sick leave, including part-time, per diem, and temporary employees.
  4. Transition to New Requirements: Questions 15 and 16 in the FAQ address how employers can transition to the new requirements. Employers who previously provided less than the new minimum must update their policies and inform employees accordingly. For instance, employers who used an “up-front” method and provided 3 days or 24 hours of leave on an employee’s anniversary must now either provide an additional 2 days or 16 hours on January 1, 2024, or reset the leave period to start on January 1, providing 5 days or 40 hours of leave.
  5. Accrual and Carryover: Employers may opt for different methods of accruing sick leave, with the general rule being at least one hour of paid sick leave for every 30 hours worked. Unused sick leave can be carried over, but employers may cap the total accrual at 80 hours or ten days.
  6. Usage, Payment, and Tracking: Employees can use sick leave for various reasons including personal illness, care for a family member, or as a victim of domestic violence, sexual assault, or stalking. Employers must pay sick leave at the employee’s regular rate and are required to track and document the accrued and used sick leave.
  7. Grandfathered Plans: Some existing paid sick leave or paid time off policies in place before January 1, 2015, may be “grandfathered” in. These plans are deemed compliant as long as they provide no less than one day or 8 hours of accrued paid sick leave within three months of employment per year and allow employees to earn at least five days or 40 hours within six months of employment.

With these amendments, Employers must review their existing policies, ensure compliance with both state and local laws, and communicate these changes effectively to their employees. For detailed information and guidance, employers and employees should refer to the California DIR’s Paid Sick Leave FAQ page: https://www.dir.ca.gov/dlse/paid_sick_leave.htm