Monday, October 20, 2014

Paid Sick Leave - News You Need to Know

Hello!

Wanted to pass along the attached bulletin regarding the bill just signed into law requiring mandatory paid sick leave. Please feel free to contact Eric Martin of the American Consulting Group with any questions. As my client, you have complimentary telephone consulting with Eric on all of your HR and Safety matters.

As Eric so cleverly warns – this bulletin might make you sick! Read with caution and don’t panic as it does not apply until July of next year. Feel free to call us with any questions. I have received several of these bulletins so if you would like additional resources just let me know.

Regards,

Carol

ACG Consulting Services Bulletin September 2014

Mandatory Sick Days Means More Headaches for California Employers

Warning: if you’re a business owner or Human Resources professional, you might be tempted after reading this post to call in sick. Come next July, all California employers will be required to provide paid sick leave to all employees – exempt and non-exempt, full time, part time and temporary. Here are the key provisions of AB 1522 which was just signed into law by Gov. Brown.

AB 1522 – This bill mandates that private California employers provide paid sick leave for employees, beginning in July 2015. With this becoming law, most employees will be entitled to one hour of paid sick leave for every 30 hours worked. Employees will be able to use sick leave for their own illness or for preventive care, to care for a sick family member, and/or to recover from certain crimes. Employers will be able to cap annual sick leave use at 3 days (24 hours) per year, however unused, accrued sick leave will roll over from year to year (this rollover can be capped at no less than 6 days (48 hours). Employers will be able to set a minimum increment for use of sick leave, but the minimum increment cannot be greater than 2 hours.

Employees will not be entitled to compensation for unused sick leave at the time of separation of employment. Employers will be required to provide notice to employees of their accrued sick leave on their itemized wage statements or on a separate document provided at the same time as wages. Employers will also be required to post a paid sick leave poster to be prepared by the Labor Commissioner’s office.

The bill also prohibits retaliation against an employee for using sick leave and establishes a rebuttable presumption of such retaliation if adverse action is taken against an employee within 30 days after the employee’s use of sick leave. Employees covered by collective bargaining agreements with paid sick leave provisions and other enumerated criteria will be exempted from the new law. Employers that already have paid sick leave policies that comply with at least the minimum leave rights provided under the bill will not be required to provide additional leave.

What should employers do?
Most employers that have sick leave policies will need to revisit and likely revise their policies and employee handbook to insure compliance before July 2015, particularly as it pertains to eligibility for part-time and temporary employees, accrual starting 30 days after hire, and use of sick leave to care for family members. Employers that don’t currently offer sick leave will have to devise a program that meets the minimum requirements and implement by July. All employers will need to make sure their payroll systems reflect the accrual of sick leave and post the required notices. Further, terminations closely following use of sick leave will have to be scrutinized to protect against discrimination and retaliation claims.
In addition to the foregoing, Governor Brown already signed into law AB 2074, which increases employer liability in actions alleging the employer paid the employee less than the minimum wage. Under AB 2074, employees will now be able to recover liquidated damages for violations going back three years (4 years under the Unfair Competition Law).
If there is any positive news for California employers, it is that AB 2416 was not passed by the Legislature. AB 2416 would have provided a procedure for an employee with a wage claim against his or her employer to record a lien against the employer’s real and personal property in the state.

Governor Brown has until September 30 to sign or veto the bills pending before him. Employers who wish to voice opposition should direct comments to the Governor’s office.


Eric Martin
Senior Vice President, American Consulting Group
949.452.1840


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