CA DIR Answers Questions About New Paid Sick Leave Law!

As an early holiday present for California employers, the Department of Industrial Relations (DIR) updated their Frequently Asked Questions page to answer some headscratchers regarding the new paid sick leave law (SB 616). They also updated the mandatory Paid Sick Leave poster, and Wage Theft Notice for hourly workers. All well in advance of January 1st!

For additional information on SB 616, refer to our previous blog article here.

Ensuring Compliance by January 1, 2024:

Many employers have had questions regarding how to ensure their paid sick leave policy is compliant for the increase from 3 days/24 hours to 5 days/40 hours effective January 1, 2024. The DIR’s FAQ #15 and #16 provide helpful clarification for the accrual method, as well as when the lump sum method is based on an employee’s anniversary date:

“15. If an employer uses an accrual method and capped an employee’s yearly use of leave at 3 days or 24 hours, what must an employer do to comply with the law on January 1, 2024?

If an employer uses an annual start date other than January 1 and implements a 12‑month use cap, that cap must change to 40 hours or 5 days on January 1, 2024. For example, if an employer uses the 12-month period of May 1 - April 30 and implements a cap and an employee used 24 hours or three days before January 1, 2024, the employer must allow the employee to use an additional 2 days or 16 hours before April 30 if the employee has accrued that additional leave.

"16. If an employer utilized the 'up-front' method prior to January 1, 2024 and provided an employee with 3 days or 24 hours of leave on the employee’s anniversary date during the year, what must an employer do to comply with the law on January 1, 2024?

The employer has the choice to frontload the two additional days on January 1, 2024 or move the measurement of the yearly period to January 1, 2024 and frontload five days.  For example, if an employee started on May 1, 2021 and the employer used that anniversary date to frontload 3 days or 24 hours on May 1, 2023, the employer may either provide 2 days or 16 hours on January 1, 2024 and keep the May 1 date to frontload or can “reset” the frontload date to January 1, 2024 and provide the employee 5 days or 40 hours then.”

Local Paid Sick Leave Ordinances

The DIR reminds employers that if they are subject to a local paid sick leave ordinance that requires more than what the State requires, they must ensure compliance with the local ordinance. Of note, however, is that as of January 1, 2024, “local ordinances cannot contradict the state paid sick leave law” on specific topics, including: “the lending of paid sick leave, paystub statements, calculation of paid sick leave, providing notice if the leave is foreseeable, timing of payment of paid sick leave, and whether payment of sick leave is required upon termination.”

CEA members may access information on local paid sick leave ordinances in this fact sheet.

Wage Theft Notice

As a reminder, at the time of hire, employers must provide each non-exempt (hourly) employee, with a written notice regarding pay rates and intervals, the designated payday, paid sick leave information, and more for the employee to acknowledge and sign. When there are changes to this information, the employer must provide an updated written notice within seven (7) calendar days of the effective date of the change. The notice must be in the language the employer normally uses to communicate employment-related information to the employee.

The DIR recently updated their sample notice for employers to use for 2024. Keep in mind that in addition to updating hourly employees regarding the new PSL, you should also update the employee on any pay rate changes (e.g., increased minimum wage). As an aside, there is also a new requirement for 2024 that California employers notify new hires regarding applicable emergency or disaster declarations in their area (AB 636). The DIR also addresses this issue in their updated sample notice.

2024 Labor Law Poster

The DIR updated their mandatory paid sick leave poster for 2024. As a reminder, the PSL poster is just one of many required state and federal notices that must be conspicuously posted in the workplace. 

If you need an all-in-one poster that includes all required notices for 2024, CEA has the 2024 poster available on our store here.

Members can call us with PSL questions at 800.399.5331!