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Recent Amendment Seeks to Clarify California’s Paid Sick Leave Law

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On July 1, a California law pertaining to paid sick leave for employees went into effect. The Healthy Workplaces, Healthy Families Act of 2014, which was signed by California Gov. Jerry Brown last September, was intended to provide employees with a program that offers paid sick leave when they need it. This law, according to the San Francisco Gate, will result in roughly 40 percent of California workers receiving paid sick leave who did not receive it before the passage of this law.[1]  At its core, this law requires employers to offer one hour of paid sick leave for every 30 hours worked to qualified employees.

While this law was just recently put into effect, Gov. Brown enacted an amendment effective on July 13 (AB 304), clarifying and amending a number of provisions from the original law.2 Some of the highlights of the amendment include clarifying  that the 30-day eligibility requirement means that employees can only qualify for paid sick leave once they have worked 30 total days at one employer as opposed to 30 consecutive days across different employers, as well as clarifying that businesses offering unlimited paid sick leave to workers can satisfy the requirement by notifying employees of how much sick time they qualify for by indicating “unlimited” on employees’ wage statements.

In addition, while the law states that workers are eligible for reinstatement of paid sick leave if they are rehired by the same company within a year of separation, the amendment clearly states that employers are not required to reinstate this paid time off if the employee was fully paid out at the time they left the company. Furthermore, this amendment states that while employers are required to track employees’ hours worked and accrual of paid sick leave dating back three years, they are not required to record the reasons for which a paid day off was used.

For businesses, keeping track of hours and the number of employees who meet the requirements to receive paid sick leave can be overwhelming and time-consuming, and adds another layer of complexity to an already cumbersome compliance process.

Learn more about ADP SmartCompliance and how it can help your business meet compliance requirements.

Learn More About ADP SmartCompliance®

 


[1] “California’s paid sick-leave law: what you should know” – SF Gate: http://www.sfgate.com/business/networth/article/California-s-paid-sick-leave-law-what-you-6324720.php

2Assembly Bill No. 304 – Chapter 67: http://www.leginfo.ca.gov/pub/15-16/bill/asm/ab_0301-0350/ab_304_bill_20150713_chaptered.pdf

 


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