employeeBy the middle of next year (July 1, 2015), virtually all employees performing work in the state of California will be eligible for paid time off for illness.  The California Healthy Workplaces, Healthy Families Act of 2014 offers no exemptions based on tax status or size of the business and very limited exemptions for any reason when it comes to sick PTO.  All business owners are advised to review their current policies to make sure that they will be in full compliance once the new law takes effect.

Under the new law California based businesses will be required to provide an employee with one hour of paid sick leave for every thirty hours worked.  Employers are also required to allow employees to accrue and carry over sick time unless they openly offer the minimum requirement for at least three paid sick days per year.

While three to six paid days off per year per employee might not sound like it would have a monumental impact on a business – the fact that there are no exemptions for non-profits or small businesses is where this law could have the biggest effect.  Businesses that only have two to three employees and limited finances will now be required to put out additional funds to compensate for sick PTO and be tasked with potentially hiring additional employees to ensure they have coverage in the event of an illness.

If you own a small business in California and have questions about how this new law might impact your ability to operate you should reach out to a California business lawyer as soon as possible.  An experienced California business attorney can review your existing sick leave policy to determine of you are in compliance and help you determine what, if any, changes you might need to make in order to ensure that you meet the parameters of the law.  A qualified attorney will also be able to review your current status to determine if there is any possibility of exemption.

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.

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.