New Law Goes Into Effect July 1, 2015
Yesterday, Gov. Jerry Brown signed the “Healthy Workplaces, Healthy Families Act of 2014” (AB 1522 - Gonzalez). As of July 1, 2015, the new law requires both public and private employers, including private employers of any size and all political subdivisions of the state and municipalities, to provide paid sick leave to employees to care for themselves or a family member. Employees (both full-time and part-time) are eligible to accrue paid sick leave if they work for 30 or more days within a year from their hire date, and they can start using paid sick leave after 90 days of employment.
Under the new law, employees accrue paid sick days at a minimum rate of one hour per every 30 hours worked, though the employer can cap the total sick leave accrual at 48 hours (or six days). Employers can also limit the number of days used to three (or 24 hours) per year, though any unused amount must carry over to the following year. When used, the employer must allow the employee to use sick leave in increments of two hours or more and must pay sick leave at the employee’s regular hourly rate of pay. Notably, employers who already have a paid leave or paid time off policy in place need not provide any additional sick leave days under this new law, provided the policy makes available an amount of leave that may be used for the same purposes and under the same conditions as specified in AB 1522 and the policy does either of the following: (1) satisfies AB 1522’s accrual, carry over, and use requirements, or (2) provides employees with no less than 24 hours or 3 days of paid sick leave per year. AB 1522 does not require employers to pay out unused sick leave at the conclusion of employment.
The law further requires all employers (both public and private) to satisfy specified posting, notice, and recordkeeping requirements similar to those already required under other wage and hour laws, including display of a poster in a conspicuous place (to be created by the Labor Commissioner) and retention of paid sick leave documentation for at least three years. Employers are also expressly prohibited from discriminating or retaliating against an employee who requests or uses paid sick days.
There are limited exemptions to the paid sick leave requirement for in-home supportive service providers and air carrier employees. There are also exemptions for construction service employees and other employees covered by a valid collective bargaining agreement, provided the collective bargaining agreement satisfies stringent standards specified in the law, including a regular hourly pay rate of not less than 30 percent more than the state minimum wage rate (currently $9 per hour). The Labor Commissioner is tasked with enforcement of the law and may impose penalties of up to $4,000 per employee whose rights were violated under the law.
PRACTICE TIP: If you already have a sick leave policy or other policy providing paid time off, review your policies now to determine whether your policy and recordkeeping requirements satisfy AB 1522. If they do, stay tuned for more information on poster and notice materials, which the Labor Commissioner should be making available prior to July 1, 2015. If you don’t have a paid sick leave policy, you should adopt one that is compliant with AB 1522 by July 1, 2015.
