Dear Clients,
California's Governor Gavin Newsom signed SB 616 guaranteeing workers at least 5 paid sick days per year, up from the current 3 days, while also increasing the accrual and carryover amounts. SB 616 amends the Healthy Workplaces, Healthy Families Act of 2014 by making the following changes:
Accrual or front-load: Employers may continue providing paid sick leave at 1 hour for every 30 hours worked, so long as an employee has accrued 40 hours or 5 days by the end of the 200th calendar day of employment. Employers also may front-load the entire paid sick leave amount, just as they may do now.
Increased annual usage cap: Employers still may limit an employee’s annual use of paid sick leave. SB 616, though, increases the annual usage cap from 24 to 40 hours.
Increased accrual cap: Under SB 616, employers may cap paid sick leave accrual at 80 hours or 10 days. Currently, employers may limit paid sick leave accrual to 48 hours or 6 days.
Employers may wish to prepare for SB 616’s effective date by reviewing and revising their paid sick leave policies to meet with the new paid sick leave requirements and accrual and usage caps. Please reach out to your designated Green Leaf representative for assistance with the new bill effective 1/1/24.
What do you need to do?
Green Leaf will not automatically update your policy, as it is your decision to follow the new regulation. If you'd like to have your policy updated within the system. If you'd like to have your policy updated within the system, please reach out to your Payroll Specialist and let them know the following:
#1. Company Short Name
#2. You'd like to have your California Sick Accruals Updated
#3. Notify which changes to make:
- If you have a front loading policy with the anchor date 1/1, we can simply update the front load from 3 days to 5.
- If your policy is "PTO" front loaded, which includes both Sick and Personal time, where the front load is 40 or more hours, no action is needed.
- If your policy is front loaded but based on anniversary date, we will need to pro-rate the front loaded amount to ensure the total will be 40 hours by the 200th day. For example, anyone that has an anniversary pass by the time the change is implemented, may need to have an additional 16 hours added.
- If your policy is based on hours worked, we will simply need to update the CAP from 24 to 40.
If you need HR Assistance and do not currently have an assigned Green Leaf HR Consultant, please fill out the
Product Inquiry Form. Once submitted a member of our team will reach out to discuss your options.