Mandatory Sick Pay Benefits – effective 07/01/15

06 Jan

MANDATORY SICK PAY BENEFITS

Effective July 1, 2015, a new California law requires most employers to provide at least three days of annual paid sick leave to California employees who work for them at least 90 days. The new mandate does NOT apply to:

> Employers who already have a paid sick leave or paid time off (PTO) policy that meets this bill’s minimum requirements;

> Employees, including construction workers, covered by certain collective bargaining agreements;

> In-home supportive service workers; and

> Certain flight deck and cabin crew employees of air carriers.

Paid sick time accrues at a rate of one hour for every 30 hours worked. A salaried employee is considered to work the lesser of (1) 40 hours per week or (2) the employee’s normal workweek.

Employees can start using sick time beginning on the 90th day of employment. Although the benefits begin to accrue July 1, 2015, the 90 day employment period commences from the time of employment.

Example: Emma begins working for her new employer on February 1, 2015 and works 40 hours per week. When she was hires, the employer did not provide any sick pay for the first year of employment. Emma will begin to accrue sick time on July 1, 2015. BY August 26, 2015, Emma will have accrued 10.66 hours of sick pay benefits ((40 hours x 8 weeks) ÷ 30 hours). Because she had been working for the employer for more than 90 days including time prior to July 1, 2015, On August 26 she would be entitled to take at least one day of sick pay.

However, if she had not started work until July 1, 2015, she would not be eligible to take a sick day until September 29, 2015, after 90 days of employment have passed.

An employer may lend paid sick days to an employee in advance of accrual but is not required to do so.

The rate of sick pa is the employee’s hourly wage. If other than hourly, divide the total wages paid for the prior 90 days, excluding OT, by the total hours worked.

Unused sick days must be carried over (but can be capped at 6 days), but an employer is NOT required to pay more than three sick days per calendar year. The carryover allows employees to use sick time in the beginning of the year. An employer can avoid the carryover by making the three days available at the beginning of a year. If an employee is fired, resigns, retires or separates from employment, an employer is not required to pay for accrued sick time unless the employee is rehired.

Employers must:

> Provide written notice of the benefits available to employees at time of hire;

> Provide an accounting of benefits accrued on a wage statement or other statement along with the paycheck;

> Post a notice outlining the employees’ rights to paid sick pay benefits.

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