Senate Bill 616, which was signed into law by Governor Newsom this month, amends existing law regarding paid sick leave to California employees. 

The Essentials:

Beginning January 1, 2024 –

• The number of paid sick days per year will be increased to 40 hours or 5 days, whichever is greater (increased from 24 hours or 3 days).
• Employers may cap an employee’s use of paid sick leave to 40 hours or 5 days in each year of employment, calendar year, or 12-month period (increased from 24 hours or 3 days).
• Employers may cap paid sick leave carryover accrual at 80 hours or 10 days, whichever is greater (increased from 48 hours or 6 days). The carryover requirement and accrual requirements are satisfied if the 40 hours or 5 days of paid sick leave is provided to the employee at the beginning of each year of employment, calendar year, or 12-month period.
• Accrual remains the same at 1 hour of paid sick leave for every 30 hours worked.
• Employers may use a different accrual method, provided that accrual is on a regular basis so that an employee has no less than 24 hours or 3 days of paid sick leave by the completion of the employee’s 120th calendar day of employment, and no less than 40 hours or 5 days of paid sick leave by the completion of the employee’s 200th calendar day of employment.
• Employees must be able to accrue 40 hours of paid sick leave by the 200^th calendar day of employment or each calendar year, or in each 12-month period.

Collective Bargaining Agreement Employees:

            SB 616 extends some provisions of California’s paid sick leave law to non-construction industry collective bargaining agreement employees.  As amended, California Labor Code Section 246.5 will require employers to allow non-construction industry employees subject to a collective bargaining agreement who are otherwise exempt from California’s paid sick leave law to use paid sick leave for the “[d]iagnosis, care, or treatment of an existing health condition of, or preventive care for, an employee or an employee’s family member” and, for certain purposes, for an employee who is a victim of domestic violence, sexual assault, or stalking.  Employers also may not require a collective bargaining employee who uses sick days to search for or find a replacement worker for those days.  The expansion of these provisions also entitles collective bargaining agreement employees to a rebuttable presumption of retaliation if an employer takes adverse action within thirty days of certain protected activity.

Counties or Cities with More Generous Paid Sick Leave Requirements:

            Most California employers are painfully aware that they must comply with all applicable state, federal, and local laws.  Employers must therefore make sure that any paid sick leave policy established complies with local requirements.  Oakland, San Francico, Berkely, Santa Monica Emeryville, Los Angeles, and San Diego all have enacted paid sick leave ordinances. For example, in Los Angeles Municipal Ordinance Section 187.04 requires employers in the city to provide up to 48 hours of sick leave in each year of employment, calendar year, or 12-month period and caps carry over accrual at 72 hours.  Because the 48-hour minimum is more generous than the SB 616 state minimum (40 hours or 5 days), employers in Los Angeles must continue to comply with the local law.  However, as the local carryover accrual cap of 72 hours is less than the new state minimum (80 hours), employers should adhere to the state standard of capping paid sick leave accrual at 80 hours or 10 days, whichever is greater.  Although these local laws have not yet changed, employers should be mindful that revisions may be passed in light of the enactment of SB 616.