Posted on May 21st, 2018
Knowing the laws regarding company sick pay is important for both employers and employees alike! Read more to find out about California sick pay requirements.
Company sick pay has always been a hot topic among both employers and employees and a common area of conflict.
In January 2015, California’s paid sick law went into effect. Californians now have the ability to take time to address health concerns without fear of losing pay.
However, this has created a lot of uncertainty and complications for California employers. If you have employees you need to understand paid sick leave and what the law’s implications are.
Even if there aren’t any foreseen medical concerns in your employees future that you know of, it’s good to be prepared.
You never know when a major accident or illness can happen to one of your key employees, so its best to get everything in order in the unfortunate case that it does happen.
Here’s what you should know about paid sick leave as an employer and an employee.
How Does Company Sick Pay Work in California?
California’s Paid Sick Leave law was put into effect on January 1, 2015, under the Healthy Workplace Families Act of 2014. Employees are entitled to paid time off to address medical concerns for both themselves and their families.
This law covers all Californians, no matter whether they’re full-time, part-time, or temporary. The stipulation is that an employee must work 30 or more days within a year to be qualified.
However, there is a 90 day “probationary period” before paid sick leave may be used.
Employees begin to accrue paid sick leave on the first day they begin at their workplace. All employees are entitled to an hour of company sick pay (at minimum) for every 30 days they work. Paid sick leave may be limited to 3 days or 24 hours per year.
The rate of pay remains the same as an employee’s usual wages. Unused sick days are able to carry over into the following year. However, employers are able to limit accrued time from the previous year to 48 hours.
After an employee leaves a company, the employer doesn’t have to pay out on sick days as they may for other time off. This extends to all employees, whether they resign, are fired, or retire.
My Company Already Provides Paid Sick Leave. What Happens Now?
You may have already had paid sick policies in place prior to 2015. If so you are not required to provide additional paid time off to your staff. You are just going to be held to the same standards as other companies.
Say an employee is “grandfathered” in and receives more than the allotted hours under California’s policy. This employee is entitled to maintain their existing paid sick leave hours, as it’s the more favorable condition.
As long as you as an employer meet all the minimum requirements, you are able to customize your own paid sick plan. At minimum, employees must receive at least 24 hours of company sick pay each year.
As an Employer. What All Should I Be Doing?
As an employer, there are some things you can do to mitigate any risk associated with paid sick time. Many company sick pay issues can be avoided by informing your staff upon hire.
When bringing on new staff members, write a formal notice with your policies for time-off. You should make a point to meet with new hires, as well, to provide any additional clarification.
You should also have a system in place for managing accrual days. As we mentioned, every 30 hours worked guarantees at least one hour of sick pay.
By law, you’re required to notify employees of their accrued days each paycheck. Many employers have created a space on their pay stubs to display this information. You can also provide an additional document on the day employees get paid.
You also need to monitor the number of days each employee has used. A simple book-keeping system or online software typically works best.
Lastly, to further avert confusion, hang a poster with sick pay laws in a common area. Some employees simply won’t ask if they’re uncertain. Having that resource can save everyone a headache in the long run.
How Do My Employees Use The Company Sick Pay?
People begin accruing paid sick leave on the first day of their employment. After 90 days of employment, they are able to start using their earned hours.
However, to use their paid sick leave, they have to notify you, the employer, orally or in writing. They are not required to find someone to replace themselves or fulfill their duties in the event they need to take time off.
The Paid Sick Law guarantees their right to sick days. You as an employers are unable to discipline, discharge, or suspend employees for using sick time. You are also unable to deny or deprive any employee of their sick days.
Employees are not subject to “occurrences” and other forms of discipline for absence. But, they can receive one if they have an unscheduled absence without any accrued sick days.
Other Information on the Paid Sick Leave Law
For the employee to qualify, they must work for the same employer for a minimum of 90 days.
Employees who work under 30 days per year are NOT entitled to paid sick leave.
90 days is used like a probationary period so if they work over 30 days but still under 90, they are also not entitled to paid sick leave.
Employees can use their company sick pay to tend to a family member’s medical issues, as well. This extends to parents, children, spouses and domestic partners, grandparents, grandchildren, and siblings.
They are not required to take a full day off. They can use their paid sick leave in hour increments.
But remember! Your employees must notify you as the employer if they plan to use a sick day. If they have a medical emergency they should provide you notice as soon as its practical.
Let’s Wrap This Up
It’s important for you the employer and also your employees to be well-informed of California’s labor laws. Knowing the rights on both sides can help prevent issues along the way.
As many of you employers know, some labor law issues cannot be avoided. If you feel as though California’s labor laws are stacked against you, you’re not alone.
My name is John Fagerholm and I’ve been in your shoes. I know what it’s like to run a business and live in fear of false claims and other unjust employee claims.
If you need someone to protect your employee interests, contact me today for a FREE Consultation.
