Employment Law Bulletin | October 17, 2023

Changes to California’s Paid Sick Leave Law Require Employers to Offer More Paid Sick Leave and Increase Accrual, Usage, and Carryover Requirements.  Changes Also Affect Employers Who Offer PTO in Lieu of Paid Sick Leave (Senate Bill 616)

Effective January 1, 2024, amendments to California’s paid sick leave law increase the number of paid sick leave days employers must offer and increase sick leave usage and carry over requirements.

Increase in Paid Sick Leave Days and Total Accrual

• Employees who receive paid sick leave in a lump sum up front each year must receive a minimum of 40 hours or 5 days, whichever is greater, per year (up from 24 hours or 3 days).
• Employers who allow employees to earn paid sick leave at a rate of 1 hour for every 30 hours worked from the beginning of employment may cap the employee’s total accrual at 80 hours or 10 days, whichever is greater, per year (up from 48 hours or 6 days)
• Employers who use a different accrual method than providing 1 hour for every 30 hours worked must permit accrual on a regular basis and the employee must earn:
  • no less than 24 hours or 3 days (whichever is greater) by the 120^th calendar day of employment, or each calendar year, or in each 12-month period (pre-2024 requirement); and
  • no less than 40 hours or 5 days (whichever is greater) by the 200^th calendar day of employment, or each calendar year, or in each 12-month period (new 2024 requirement).
• Employers who provide 24 hours or 3 days (whichever is greater) of paid sick leave that is available to use by the completion of the employee’s 120^th calendar day of employment (pre-2024 requirement), must now provide an additional 16 hours or 2 days (whichever is greater) of paid sick leave by the employee’s 200^th day of employment, for a total of 40 hours/5 days per year (new 2024 requirement).

Cap On Use of Paid Sick Leave

Employers may limit their employees’ use of paid sick leave to 40 hours or 5 days per year, whichever is greater (up from 24 hours or 3 days per year).

Carry Over of Unused Paid Sick Leave

Employees who accrue paid sick leave over time must be permitted to carry over 40 hours or 5 days (whichever is greater) of paid sick leave from one year to the next (up from 24 hours or 3 days).  Employees who receive paid sick leave in a lump sum up front each year are not entitled to carry over unused sick leave from one year to the following year (no change to this law).

Offering Paid Time Off in Lieu of Paid Sick Leave

Employers who satisfy the paid sick leave requirements by providing paid time off in lieu must ensure that their paid time off policy satisfies the new requirements listed above.

Contact an SMT employment attorney to update your employee handbook and paid sick leave/paid time off policies today!.

Lisa Ann Hilario

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SMT’s employment attorneys can provide your company with employment policies, forms and employee disciplinary documentation in Spanish. Providing such important information to employees in the language they understand is critical to employee performance, providing a welcoming diverse work environment, and protecting your company against employment claims. Contact an SMT attorney today to get started.

Spaulding McCullough & Tansil LLP
Employment Law Group

Lisa Ann Hilario | Kari Brown