CA Updated Paid Sick Leave Law (S.B. 616)
- September 26, 2023
There is currently no federal law requiring paid sick leave, but California’s Healthy Families Act of 2014 requires employers to offer a minimum of 24 hours or three days of paid sick leave per year. California’s paid sick leave law applies to employees who work in California for 30 or more days within a year. Paid sick leave days can be used for physical and mental illnesses, to attend medical appointments, or to care for ill family members.
On September 12, 2023, the California Legislature passed a new Senate Bill 616 which expands the number of paid sick days that California employers must offer to employees. California’s new proposed law would raise the number of paid sick leave days from three to five days per year. Senate Bill 616 would also expand how sick days are accrued and used. This new law will increase the rolling accrual cap, the alternative accrual rate, and the frontloaded grant to avoid accrual and carryover.
With the implementation of this new bill, California’s rolling accrual cap will be increased from 48 hours or six days to 80 hours or 10 days. This means that California employees will be able to accrue up to 80 hours of paid sick leave. This bill will also ensure that the alternative accrual rate will allow employees to accrue at least 24 hours of paid sick leave by their 120th day of employment and 40 hours or five days of paid sick leave by their 200th day. After the first year of employment, employees must accrue at least 40 hours of paid sick leave per year. For employers who want to avoid accrual and carryover with a lump grant of paid sick leave for new employees, this bill will require employers to provide new hires with at least 40 hours or five days of paid sick leave that is available for them to use by their 200th day of employment. For existing employees, employers will have to provide at least five days or 40 hours of paid sick leave at the beginning of each benefit year.
Governor Newsom has until October 14, 2023, to sign or veto this bill. If this bill is not vetoed, it will take effect beginning January 1, 2024.