On Tuesday, Governor Newsom announced that employees would soon be entitled to additional supplemental paid sick leave for COVID related absences. While the exact details of the new program are not fleshed out, employers of 26 or more employees should begin preparing to offer supplemental sick leave hours. Here is what we know so far:

Which employers are covered?

Employers of 26 or more employees must offer supplemental sick leave under the new requirement

When will employees be permitted to request this leave?

While the effective date of the new sick leave entitlement is not yet determined, when it goes into effect employees will be permitted to use the hours for future covered absences and retroactively apply sick leave to prior absences back to January 1, 2022. If employees do not use all their available hours, they will expire on September 30, 2022.

How much leave to employees get?

Full time employees may received up to 80 hours of supplemental sick leave, but with a twist. These employees automatically receive 40 hours, however, to be entitled an additional 40 hours they must show proof of a positive test either from themselves or a family member they are caring for. It is not yet clear what the proof must be or the scope of family members that qualify. We anticipate that these details will be included in the final regulation when it becomes effective.

Part time employees will likely receive the equivalent of two weeks of leave based on their schedule. However, similar to full time employees they would not be entitled to the second week of leave unless they provided proof of a positive test.

Will tax credits be offered?

The governor’s announcement indicated that employers providing this leave will be able to apply for state tax credits to help offset the costs. It is not clear whether there will be a daily cap on the credit amount similar to the federal tax credits offered with the prior FFCRA supplemental sick leave. Again, we expect these details to be in the final regulation.

We will continue to keep tabs on this new requirement and keep employers updated with any developments.

Stradling Has Resources To Help You Stay Compliant

To assist California employers in complying with the various COVID-19 requirements in California, Stradling has created COVID-19 protocols which incorporate all the new requirements and clarifications of the ETS and help businesses comply with federal, state, and county requirements. Stradling also has resources to ensure you are in compliance with all employment related laws in California. We encourage you to reach out if you want to make sure you are in compliance with the applicable requirements.