Unraveling CA 2024 Sick Leave
By VICKY BROWN
In order to understand the update, I think a bit of backstory is in order. In 2014 California made sick leave the law of the state under the Health Workplaces, Healthy Families Act. Basically, it guaranteed that California employees would get a specific number of paid sick leave hours.
The original guidelines provided for 3 days (24 hours); and employers could set those hours to accrue based on how many hours the employee had worked, or they could frontload the time – meaning give it all to the employee at the beginning of the year.
Now the interesting part is that between 2014 and now, there have been a number if cities, that have imposed their own sick leave laws. For the most part the local laws increased the number of annual sick hours available, increased the annual usage cap, increased the amount that could be accrued, or some combination of those.
For instance, in the city of Los Angeles, employees are entitled to 48 hours (or 6 days) of sick leave each year (as opposed to the State’s 24 hours or 3 days). The could still go with an accrual method, meaning they give 1 hr for every 30 hours worked; or they could frontload all the time at the beginning of the year.
Anything that was unused at the end of the year was carried over year to year – but employers could cap the amount available to 72 hours. Now that’s not to be confused (which I’m sure you are) with the Usage cap. So while you could cap the amount on the books so it wouldn’t be more than 72 hours; you could also have a cap on the amount of time an employee could use each year.
In LA the usage cap is 48 hours (vs. the state’s 24 hours).
So you can see that the LA City sick leave law offers more benefit for the employee. And that was mostly the case in other cities – Berkeley, Emeryville, Oakland, San Francisco, and Santa Monica, like LA, had offerings that topped out at 72 hours. And they are all dwarfed by San Diego’s 80 hours.
Well, the state has caught up – OK, well not to San Diego – but it has expanded sick leave at the state level. So that means, if you are in California, and not in a city where there’s a beefier local sick leave law (because the most generous leave is the one ring to rule them all); well then you are subject to the 2023 California update – which goes a little something like this…
Effective January 1st, companies will have to provide 40 hours or 5 days of paid sick leave (if you’re keeping count, that’s up from the prior 24 hours).
You still have the option of using an accrual method (1 hour accrued for every 30 hours worked). And you could actually use an alternate accrual rate – but you have to make sure that whatever rate you use will result in the employee accruing 40 hours no later than their 200th day of employment; and they also have to accrue at least 24 hours by their 120th day of employment. Oh and yes – you can still just frontload everything if you wish.
“… So, what should you do to get ready? Well first, look at your local ordinances – figure out if you actually are subject to a local sick leave law, and what the details are.“
The annual usage cap has been increased too. So while it was 24 hours, it’s now 40 hours – so you can limit the amount of time an employee can take each year to 40 hours. And also, the accrual cap has increased. With the new law, your accrual cap is 48 hours or six days – so even if the employee has roll over, because they didn’t use all their sick days – they can’t have a total of more than 48 hours on the books.
The new law also addresses how sick leave does (or doesn’t) impact collective bargaining agreement environments – meaning union shops.
Now I know I said the ‘one ring to rule them all’ thing – because it sounded really good, and it’s mostly true. But the pivotal term is ‘mostly’. There are circumstances where the local law is a bit more flexible and the state law specifically preempts it.
Things like if the local law say’s the company has to pay out unused sick days at termination, the state law says no they don’t.
California has updated the state’s sick leave guidelines for 2024.
Are you ready?
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So, what should you do to get ready? Well first, look at your local ordinances – figure out if you actually are subject to a local sick leave law, and what the details are.
Then, take a look at your handbook policy, and the details of the new law’s updates. That way you can figure out how much it might impact your company. I wouldn’t suggest tackling a rewrite of your policies on your own, give your HR expert or labor attorney a call for help with updating your handbook. And actually, this is the time to do that anyway, because this isn’t the only new law for the new year.
Update your time off policies in your information or payroll systems, so they accrue at the correct rate. Train your managers on the new guidelines, so they have the information they need to handle the day to day questions. Get your updated posters and notices; and make sure your employees are either getting their sick time taken amounts and accrual balances on their pay stubs or on a separate pay day distribution.