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Attention California Business Owners: Get Ready for New Paid Sick Leave Requirements!

California employers, listen up! Governor Newsom has recently signed a new law, SB 616, which brings important changes to the paid sick leave landscape. This means that all employers in California must be aware of and comply with the following key points:


1. Increased Paid Sick Leave:

Under SB 616, employers must provide a minimum of 5 days or 40 hours of paid sick leave to their employees. This is an increase of 2 additional days or an additional 16 hours of sick time. This improvement ensures that employees have ample time to take care of their health and well-being when needed.


2. Accrual or Lump Sum:

  1. Accrual

While complying with the new requirements, employers can still adopt an accrual rate of one hour of paid sick leave for every 30 hours worked. This allows for more flexibility in managing time off while meeting the mandated obligations, however.


b. Accrual Limitations/Down Side

If your company chooses the accrual method, the full 40 hours of sick time must be accrued by the 200th day of the year from the January reset date or 200 days after an employee is hired.


The Accrual approach, also requires that employers allow for a carryover of unused sick time balances into the next year for a max allowance or cap of 80 hours.


3. Lump Sum

Front loading the 40 hours of sick time at the beginning of each new year, or 90 days after employment does not require employers to allow for a carryover into the next year. Any unused sick time at the end of the year is forfeited and the new balance of 40 hours is reset on January 1st of each year.


4. City or County Requirements:

Be sure to check your local City or County requirements for sick leave. Some major metropolitan areas in California may require up to 48 hours a year, such as Los Angeles, San Diego, and San Francisco.


5. Reasonable Usage Limits:

Employers have the right to limit the use of paid sick leave to 40 hours or five days in a year of employment, calendar year, or 12-month period. Setting reasonable usage limits ensures fairness and stability for both employers and employees.


6. Necessary Updates:

With the new regulations coming into effect on January 1, 2024, employers need to make a few adjustments. Begin by updating new hire packets to include the revised Notice to Employee as required by Labor Code section 2810.5. Additionally, review and update employee handbooks and workplace posters to align with the changes, ensuring everyone is well-informed.


7. Pay Stub Information:

As mandated under existing law, employers must provide notice to employees regarding their available amount of paid sick leave on or before each payday. This notice can be provided through pay stubs or other written forms. It is crucial that you collaborate with your payroll company to ensure compliance by updating pay stubs starting from January 1, 2024.


If you have any questions or need assistance with payroll and HR services and to navigate these new changes, we encourage you to reach out to HR Simplistic. Paul and his team of experts are the go-to HR Team in the Coachella Valley. We are here to help you navigate these changes and ensure compliance with the new paid sick leave requirements. For more information contact us today at 760-779-3300 x102 or info@hrsimplistic.com.


Remember, January 1, 2024, is just around the corner, so take proactive steps now and get in touch with us at HR Simplistic to stay ahead of the game!


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