California’s Paid Sick Leave Law: What Employers Need to Know

In 2024, the California sick leave law was expanded to require employers to provide employees with a minimum of 40 hours or five days of paid sick leave each year. This is an increase from the previously mandated 24 hours or three days of paid sick leave. If you’re an employer in California, it’s essential to understand when you are required to pay employees for sick leave — and what types of accrual methods you are permitted to use to ensure compliance with the new legislation.

What is California’s Paid Sick Leave Law?

As of January 1, 2024, California employers are required to provide employees with at least 40 hours — or five days — of paid sick leave each year, whichever is more. For example, if an employee works a 10 hour shift each day, they would be entitled to a minimum of 50 hours of paid sick leave. If a local ordinance is in place that would offer more paid sick leave than the state law, an employer must provide whichever benefit is more generous to employees.

Who is Entitled to Paid Sick Leave?

The California sick leave law applies to all employees who have worked for the same employer for at least 30 days within a year. However, an employer may implement a 90-day waiting period before an employee can use any of their accrued paid sick leave. At their discretion, an employer may also “frontload” sick leave and provide sick days to employees in advance of accrual.

Employers must allow employees to take paid sick leave in the following situations:

• Caring for a sick parent
• Caring for a child who is ill
• Going to a doctor’s appointment
• Seeking treatment for a chronic disease
• Having a surgical procedure
• Seeking medical treatment for domestic violence injuries
• Attending psychological counseling

In addition to full-time employees, the law also applies to part-time, temporary, and per diem workers. Notably, certain employees are exempt from the California sick leave law, including certain airline employees, retired annuitants working for governmental entities, railroad employees, and construction employees covered by collective bargaining agreements. Other employees covered by collective bargaining agreements with specified provisions are partially exempt from paid sick leave.

What Accrual Methods Can Employers Use When Offering Paid Sick Leave?

Employers have a choice when it comes to how they will comply with the California sick leave law. Specifically, there are several accrual methods employers can use to provide paid sick leave to employees. These include the following:

• Statutory accrual method — This method allows employers to provide employees with one hour of paid sick leave for every 30 hours worked as they accrue. But once an employee has reached 40 hours, they cannot accrue any additional time until they have used some of their leave. While unused paid sick leave can carry over into the following year, employers may cap the accrued leave at 80 hours, or 10 days each year.
• Lump sum — With the lump sum method, no accrual is required. Rather, an employer provides the full 40 hours or five days of sick leave at the beginning of each 12-month period. This is typically an easier method of ensuring compliance with the law since it isn’t necessary to keep track of the accrued leave hours.
• Existing PTO policy — If an existing paid time off policy is in place that provides for the minimum amount of paid leave required under the California sick leave law, an employer is legally compliant.

While an employer must permit employees to carry over any unused paid sick leave into the following year, the time may be capped at 80 hours or ten days. If a lump sum policy is used for accrual, the unused time does not need to be carried over. In cases where an employee leaves the company and is rehired within one year, any previously unused sick leave must be reinstated, unless it was paid out at the time of termination.

Are Employers Required to Notify Employees About Their Sick Leave Rights?

Under California law, employers must include paid sick leave information on each employee’s pay stub. This is meant to ensure transparency and help employees keep track of how many paid sick leave days they have. The requirement can also prevent disputes between employers and employees over how many days have been accrued.

Employers must also display a poster outlining the sick leave rights of employees, including the right to accrue paid sick leave, request sick leave, and use their accrued time. The poster must also inform employees that they are protected from retaliation for requesting use of sick leave. Employers must place the poster in a location where employees can easily read it to ensure compliance with the law.

Contact an Experienced California Employment Law Attorney

It’s crucial for employers to fully understand the California sick leave law — and ensure compliance. The employment law attorneys at White & Bright, LLP work closely with employers regarding a wide range of employment matters, including those involving paid sick leave. We welcome you to contact us online or call us at (760) 747-3200 to learn more about our legal services.