Eligible employees in California are currently entitled to receive a minimum of three days (or 24 hours) of paid sick leave per year. SB616 would expand that entitlement to five days (or 40 hours). Amending the existing law preserves the option to provide the benefit via an accrual method over a period of time or as a lump sum.
Employers who opt for the accrual method would need to apply the following changes:
- Employees would be able to accrue sick leave at the current rate of one hour for every 30 hours worked, or
- Employer can use an alternative accrual rate on a regular basis to ensure that the employee has at least 24 hours accrued by the 120th day of employment, the 120th day of the calendar year, or the 120th day of a 12-month period
- Additionally, the selected accrual method must ensure that the employee has at least 40 hours of accrued sick leave by the 200th day of employment, calendar year, or 12-month period.
This legislation has moved to the governor to sign or veto, which must be completed by October 14, 2023.
This article is informational and does not constitute legal or financial advice. Consult with an employment lawyer or accountant for additional clarification on how these changes impact your company.