Four Facts About the Amendments to California’s Paid Sick Law for Nonprofits
Governor Gavin Newsom recently signed SB 616 into law, which amended the Healthy Workplaces, Health Families Act (HWHFA) to expand paid sick leave for California workers.
Governor Gavin Newsom recently signed SB 616 into law, which amended the Healthy Workplaces, Health Families Act (HWHFA) to expand paid sick leave for California workers. The legislation expands the amount of paid sick leave that employers must provide.
Amendments to HWHFA
Here are four facts about the amendments to HWHFA, which took effect on January 1, 2024.
1. Employers must now provide employees with five days or 40 hours of paid sick leave, whichever is more. Therefore, employees who work 10-hour shifts are entitled to 50 hours of paid sick leave per year. This change represents an increase from the previous three days or 24 hours of paid sick leave.
2. The paid sick leave law covers most employees. Covered employees include part-time workers, per diem workers, in-home supportive service (IHSS) providers, and temporary workers employed by staffing agencies. The only employees not covered by the paid sick leave law are:
a. Flight deck or cabin crew members employed by flight carriers, if they received paid time off at least equivalent to that provided under the paid sick leave law;
b. Retired annuitants working for government entities;
c. Employees of railroads;
d. Employees in the construction industry covered by a collective bargaining agreement (CBA) with specified provisions; and
e. Employees outside the construction industry covered by a CBA with specified provisions. However, these employees are only partially exempt and are still entitled to some paid sick leave under their CBA.
3. Under this law, employees qualify to take paid sick leave after working for the same employer for at least 30 days within a year in California and satisfying a 90-day employment period before taking any leave.
4. Employers have different options for granting paid sick leave:
a. Up-Front / Front-Loading Method – Under this option, an employer provides employees with a minimum number of paid sick leave days or time off at the beginning of each year of employment, calendar year, or 12-month period. No accrual or carryover of the time is required because the employee receives it at the beginning of the year. The employer can make the employee wait until the 90th day of employment before using any paid sick time.
b. Accrual Method – This option allows employees to earn sick leave over time, with any accrued time carrying over to the next year of employment. Generally, employees must earn at least one hour of sick time for every 30 hours of work. The accrual schedule must result in the employee accruing at least 24 hours or three days of sick time or paid time off by the 120th day of employment and at least 40 hours or five days of sick time or paid time off by the 200th day of employment. However, the employer can employ a more generous accrual schedule.
The law also allows employers to limit employees to using no more than five days or 40 hours of paid sick time per year. Employers may also limit an employee’s total accrued paid sick time to ten days or 80 hours.
The California Center for Nonprofit Law can update you on any legislation impacting your nonprofit organization. We will advise you of any measures you need to take and help you implement them to remain compliant. Contact us today at (949) 892-1221 and see how we can help.
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