30daysThere are only 30 days left before California’s new mandatory paid sick leave law takes effect. Starting July 1, 2015, the Healthy Workplaces, Healthy Families Act of 2014 (HWHFA) will require all California employers to offer sick pay to nearly every category of employee. The minimum obligation is to provide sick pay at the rate of 1 hour for every 30 hours worked or a lump sum allocation of 3 days or 24 hours per year.

If you run a business in California and have not yet complied with the new law, or are not sure what you need to do, below is an action guide:

 Need more information about the law?  Check out our California Paid Sick Leave Law FAQs and Tips.

Action Guide: 

  • Display the Poster. Have you placed the necessary written posters providing notice to employees at the workplace?   Starting January 1, 2015, employers must display a poster created by the Labor Commissioner informing employees of their rights under the HWHFA. A copy of this poster can be found here.
  • Adopt an Accrual Method. Have you adopted which accrual method your business will be using for employees? Click here for sample policies for both methods.
    • Accrual Method. Under the accrual method, employees must, at minimum, accrue one hour of paid sick leave for every 30 hours worked. Accrued sick leave must carry over year to year, but employers can cap the accrual at no less than 48 hours (six days). While employees are entitled to accrue up to 48 hours of paid sick leave, an employer can limit an employee’s use of paid sick leave to 24 hours (three days) in any one year.
    • Upfront Method.  Under the “upfront” method, employers must provide employees with a lump sum of no less than 24 hours (three days) of paid sick leave at the beginning of each year. Under this option, the full 24 hours of leave must be available at the beginning of each year for each employee to use.
  • Paid Sick Leave Policy  to Address Caps and Rollovers.  Have you adopted a policy for your business to specify whether employee paid sick leave days will be capped or whether they will roll over? If not, you need to do so no later than July 1, 2015. A sample policy is here for your use.
  • Recordkeeping. Have you established a file to keep records of employee paid sick leave accrual? Starting July 1, 2015, employers must keep records of all employee’s hours worked and paid sick leave days accrued, for at least 3 years.

Have questions about the new paid sick leave law? Check out our FAQs and Tips. 

Download Free Sample Paid Sick Leave
Notices &  Sample Policies Now 

AXIS Legal Counsel’s Business and Corporations Practice provides legal advice to numerous businesses with a variety of legal matters involving employees and labor law. We can assist in establishing compliance with California’s Employment and Wage & Hour laws, employee handbooks, leave policies, promotions, demotions, terminations, payroll matters, and other employment requirements.  AXIS offers full-service legal support to businesses and companies, and can also assist your company with business formations and governance, contracts, deals, and transactions, administration & operations, risk management / insurancelabor/employment matters, intellectual property, healthcare, crisis management, directors/officers, private/data security, technology, statutory/legal compliance, and business litigation when disputes with other businesses arise.

For information on retaining AXIS Legal Counsel to represent your business in connection with any legal matter, contact info@axislegalca.com or call (213) 403-0130 for a confidential consultation.

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