As the new calendar year approaches, one of the significant pieces of new legislation that will be taking effect, Senate Bill 616, amends the California Paid Sick Leave Law.
Some of the changes to the California Paid Sick Leave Law that will go into effect on January 1, 2024, include the following:
- Currently, employers have the option of complying with the California Paid Sick Law by either: (1) implementing an accrual method with a minimum accrual rate (discussed below); or (2) frontloading the greater of 24 hours or 3 days of paid sick leave at the beginning of each year of employment, calendar year, or 12-month period. Pursuant to SB 616, employers who choose to frontload paid sick leave will be required to frontload 40 hours or 5 days of paid sick leave each year.
- Currently, for employers who provide paid sick leave on an accrual basis, the minimum accrual cap that an employer can implement is 48 hours or 6 days. Pursuant to SB 616, the minimum accrual cap on paid sick leave will increase to 80 hours or 10 days.
- Currently, employers are permitted to cap an employee’s use of paid sick leave at the greater of 24 hours or 3 days per year. Pursuant to SB 616, the minimum use cap on paid sick leave will increase to 40 hours or 5 days per year.
- Currently, when employers provide sick leave on an accrual basis, sick leave must either be accrued at a rate of one hour for every 30 hours worked, or an alternate accrual method can be established as long as the accrual is on a regular basis so that the employee has no less than 24 hours (or 3 days) of accrued paid sick leave by the 120th calendar day of employment or each calendar year, or in each 12-month period. Pursuant to SB 616, the alternate accrual method will require that the accrual be on a regular basis such that (1) the employee receives no less than 24 hours or 3 days of accrued paid sick leave by the 120th calendar day of employment or each calendar year (or each 12-month period); and (2) the employee receives no less than 40 hours or 5 days of accrued paid sick leave by the 200th calendar day of employment or each calendar year (or in each 12-month period).
- Currently, the substantive benefits and procedural protections under the California Paid Sick Leave law do not extend to employees who are covered by an MOU or a CBA that provides the following: (1) paid sick days, leave or time off; (2) final and binding arbitration; and (3) a regular hourly rate of pay not less than thirty percent (30%) more than the state minimum wage.
- Currently, the substantive benefits and procedural protections against discrimination and retaliation related to the use of sick leave under the law do not extend to represented employees who are covered by a Collective Bargaining Agreement (“CBA”) or a Memorandum of Understanding (“MOU”). SB 616 extends the procedural protections to those covered by a CBA or
The current requirements remain in effect until the new calendar year so nonprofit organizations should plan to make any necessary updates to their paid sick leave policies by January 1, 2024. LCW will have an updated California Paid Sick Leave policy that incorporates the requirements of SB 616 available next month on the Liebert Library. Access to the Liebert Library is included for premium consortium members.
Additionally, nonprofit organizations that are subject to a local paid sick leave ordinance should be aware that local ordinances might have additional and/or more generous requirements. In the event of a conflict between the California Paid Sick Leave law and a local paid sick leave ordinance, the provision that is more favorable to the employee applies.
LCW will be presenting a Nonprofit Legislative Webinar, on December 13, 2023 at 10am, which will discuss the impacts of SB 616 and other new legislation affecting California nonprofit organizations. Information on how to register for the webinar is available here: https://www.lcwlegal.com/events-and-training/webinars/2024-nonprofit-legislative-roundup/
Liebert Cassidy Whitmore attorneys are closely monitoring developments in relation to this Special Bulletin and are able to advise on the impact this could have on your organization. If you have any questions about this issue, please contact our Los Angeles, San Francisco, Fresno, San Diego, or Sacramento office.
