Orange County Branch Newsletter

July 2015

Law and CE News

Time to Update Sick Leave Policy

A critical deadline under California’s Healthy Workplace Healthy Family Act of 2014 is fast- approaching. Phase one went into effect on January 1, 2015, and phase two, which requires mandatory paid sick leave, record keeping, and wage statement standards, starts on July 1, 2015.

Under phase one, all employers must post notice of the following in a conspicuous place:

1. That an employee is entitled to accrue, request, and use paid sick days;

2. The amount of sick days provided under the law;

3. The terms of use of paid sick days; and

4. That retaliation against an employee who requests or uses paid sick days is prohibited.

To help make meeting the phase one requirement easier, the California Division of Labor Standards Enforcement has made a free poster entitled "Healthy Workplaces/Healthy Families Act of 2014 Paid Sick Leave" available online.

The next big development is starting July 1, 2015. Any employee who works in California for 30 or more days a year is entitled to paid sick leave. That goes for every single employer in California, no matter what the size of the firm or the number of employees. Here is a short list of some of the requirements:

1. The sick leave can be used for the illness of the employee or their family member.

2. If an accrual method is used, the sick time must accrue at a rate of one hour per every 30 hours worked and carries over to the following year. Employers may cap the amount of sick leave accrued at 24 hours or 3 days per year with an overall cap of at least 48 hours.

3. If an accrual method is not used, then an employer can instead provide 24 or more hours at the beginning of each year with no carry-over of unused time to the next year.

4. Employers can set a minimum sick-leave time, which cannot be greater than 2 hours.

5. An employer shall provide an employee with written notice of the amount of leave available, or paid time off on either the employee’s itemized wage statement or in a separate writing provided on the designated pay date.

6. The employer must keep records for 3 years that document the hours worked and the sick days accrued and used by the employee. If adequate records are not kept, there is a presumption that the employee is entitled to the maximum number of hours accruable.

The Labor Commissioner has the power to fine or penalize employers who do not comply with the new law. With the July 1 deadline, there is no time like the present to confirm payroll statements and employee handbooks are in compliance with the new law. CCM+S can help make these

Please contact us to discuss further.

Nicole Davis Tinkham, Esq. | ndavis@ccmslaw.com  

Ryan J. Kohler, Esq. | rkohler@ccmslaw.com  

Collins Collins Muir + Stewart LLP

Nothing contained in this article should be considered legal advice. Anyone who reads this article should consult with an attorney before acting on anything contained in this or any other article on legal matters, as facts and circumstances will vary from case to case.