On September 13, 2023, the California state legislature passed S.B. 616, which will expand the state’s 2014 paid sick leave (PSL) law if signed into law. Governor Newsom has until October 14, 2023 to sign or veto the bill.

Background

• California was the second state in the nation to pass a PSL mandate, after Connecticut.
• The existing California PSL law applies to almost all employees who work in California for at least 30 days within a year, including full-time, part-time, temporary, and seasonal employees.
• Under the current PSL requirement, employers may “front load” 24 hours (three days) of PSL at the start of each benefit year or allow it to accrue over time at a rate of one hour of PSL per 30 hours worked, up to a rolling “point-in-time” 48-hour maximum accrual. Employers may impose a 120 day waiting period for PSL use for new hires, and annual PSL use may be capped at 24 hours.
• Employers may use an alternative accrual method as long as the method allows employees to receive at least 24 hours of accrued PSL by their 120^th calendar day of employment, and within each calendar year.

PSL Amendment

• S.B. 616 would increase the annual PSL usage cap to 40 hours (five days). The new usage cap would apply whether an employer front loads PSL or allows it to accrue.
• The bill would also increase the rolling accrual cap to 80 hours (10 days).
• In order for employers to use an alternative accrual method, the bill adds a requirement that employees receive no fewer than 40 hours of accrued PSL by their 200^th calendar day of employment, and per benefit year.
• Employers that wish to avoid carryover requirements would be required to grant new hires at least 40 hours of PSL for use by their 200^th calendar day of employment. The bill is not explicit in stating whether the requirement to allocate at least 24 hours of PSL by the 120^th day of employment continues to apply for new hires.
• Employees who accrue PSL over time would continue to have the right to carry over accrued, unused PSL at the end of each benefit year.
• The bill would go into effect on January 1, 2024 if signed into law.