What are the requirements of the California paid sick leave law?

Editor's Note: California has enacted legislation to provide certain employees with paid sick leave for reasons related to COVID-19. This supplemental paid sick leave requirement has been extended several times, most recently through December 31, 2022. See California Passes Bill to Extend COVID-19 Sick Pay, Provide Small-Business Relief.

The Healthy Workplaces, Healthy Families Act of 2014 (AB 1522) requires employers with employees working in the state of California to implement paid sick leave.  

Employers are required to post, in a conspicuous place at the workplace, a poster notifying employees of the law, and are required to provide most newly hired nonexempt employees with an individualized Notice to Employee that includes paid sick leave information. This notice requirement does not apply to employees who are exempt from the payment of overtime, though they are otherwise covered by the law.

Employees who work in California for 30 or more days in a year (for the same employer), and have satisfied a 90-day employment period from the beginning of employment are entitled to paid sick leave. This includes temporary, part-time and seasonal employees, as well as out-of-state employees (as long as they work in California for 30 or more days in the year, and the 30 days worked need not be continuous). Employees covered by qualifying collective bargaining agreements, In-Home Supportive Services providers, retired annuitants working for governmental entities, and certain employees of air carriers are not covered by this law. 

Beginning on the first day of employment, employees will earn paid leave according to the employer's policy, which must be either at least one hour of paid leave for every 30 hours worked, or no less than 24 hours of paid leave accrued by the 120^th day of employment per year (or other established 12 month period). However, employers can limit the amount of paid sick leave taken annually to 24 hours, or three days, and cap the amount of paid sick leave that can be accrued to 48 hours, or six days. 

Employers may use existing PTO policies as long as those policies comply with the minimum requirements of the law for the accrual, carryover and use of sick leave. As an alternative to the accrual of one hour of sick leave for every 30 hours worked, employers are permitted to use an upfront or advance method, in which the full amount of accrued leave (no less than 24 hours, or 3 days) must be available to the employee at the beginning of the 12-month period. 

Although the law requires that employers separately track sick leave accrual and use, for employers with unlimited paid time off plans, the notice, itemized pay stub or separate written statement provided with the payment of wages meets this requirement by indicating the paid sick leave is "unlimited".

The law allows employees to take paid leave for themselves or their family members for preventive care (e.g., annual physical or flu shot), for care of an existing health condition or for specified purposes if the employee is a victim of domestic violence, sexual assault or stalking. Sick leave may be used in increments of less than one day; however, employers may set a minimum increment use not to exceed two hours.

The law also requires employers to show on the employee's pay stub or document issued the same day as the paycheck the number of paid sick leave days available. Employers must keep records for at least three years showing how many hours were worked and how many paid sick leave hours were accrued and used. This information may be stored on documents available to employees electronically. See more information at the resources below.

Frequently asked questions about California's new paid sick leave law:
http://www.dir.ca.gov/dlse/Paid_Sick_Leave.htm

Healthy Workplace Healthy Family Act of 2014 (AB 1522) overview: http://www.dir.ca.gov/dlse/ab1522.html