A hot topic for legislators throughout the United States, last fall California became the second state to require paid sick leave. Effective July 1, 2015, California’s Healthy Workplaces, Healthy Families Act of 2014 provides that all employees working in California for 30 or more days within a year from the commencement of employment are entitled to paid sick leave, which means that temporary and part-time employees may be eligible. Sick leave must either (i) accrue at the rate of no less than one hour for every 30 hours worked, or (ii) total at least three days or 24 hours and be provided in full at the beginning of the year. Although sick leave that accrues may total more than three days per year, employers may limit use to three days or 24 hours per year of employment. Sick leave that accrues must carry over from year to year, but employers may cap accrual to six days or 48 hours. Employees must be entitled to use accrued paid sick days beginning on the 90th day of employment. Employees may use accrued paid sick days for their own health needs, including preventative care, or for the health needs of a broad group of family members, and sick leave may also be used for victims of domestic violence, sexual assault and stalking to attend to related legal matters.

Exempt employees are covered and will accrue and be paid for sick leave based on a 40 hour per week workweek, unless the employee’s work week is less than 40 hours, in which case the employee shall accrue paid sick days based upon that normal workweek. For an hourly employee, the rate of pay for sick leave would be the hourly wage. However, if in the preceding 90 days an employee had different hourly rates, was paid by commission, or was a nonexempt salaried employee, the rate of pay is calculated by dividing the employee’s total wages, not including overtime premium pay, by the employee’s total hours worked in the full pay periods of the prior 90 days of employment.

Employers must notify employees of their right to sick leave by posting a notice, and provide written notice on each payday of the amount of paid sick leave available. Employers must keep for at least three years records documenting hours worked, paid sick days accrued and paid sick days used by each employee. Various penalties apply if an employer fails to comply with the requirements of the new law and retaliation against an employee seeking to invoke his or her rights under the law is strictly prohibited.

The Healthy Workplaces, Healthy Families Act of 2014 is a comprehensive, complicated piece of legislation. Compliance with this law will require numerous adjustments by employers. Employers are strongly urged to consult with legal counsel regarding these new laws, and training for those responsible for implementation is highly recommended.