Calif. Labor Code §§245.5, 246 and 247.5
Amended by A.B. 304
Effective date: July 13, 2015
New regulations clarify an employee accrues one hour of paid sick leave per 30 hours worked for an employer only if they have worked for the same employer for at least 30 days in a year.
An employer may use alternative calculations for sick leave accrual, as in the case of employers who do not track employees on an hourly basis, as long as employees accrue and are able to use at least 24 hours of paid sick leave either by the 120th calendar day of employment or for each calendar year or 12-month period.
An employer is exempt from adopting the one hour per 30 hours worked accrual method if, prior to January 1, 2015, their sick leave or paid time off policy provided employees:
- at least eight hours of paid sick leave within three months of employment of each calendar year or 12-month period; and
- at least 24 hours of sick leave or paid time off accrued within nine months of employment.
If an employer alters the sick leave policy after January 1, 2015, they are required to meet current sick leave requirements by providing:
- one hour of paid sick leave for every 30 hours worked; or
- an alternative accrual method which results in at least 24 hours of paid sick leave accrued and available for use by the 120th calendar day of employment.
An employer is not required to reinstate accrued paid time off for an employee that was paid out upon termination or resignation.
An employer may satisfy sick leave accrual and disclosure requirements by providing unlimited paid sick leave and indicating so on the employee’s wage statement.
Paid sick leave needs to be calculated either based on the regular rate of pay for the work week or by dividing the employee’s total wages by the total hours worked in the pay periods for the prior 90 days. For exempt employees not subject to minimum wage requirements, any paid sick time provided is to be calculated in the same way as wages provided for other forms of paid leave time.
An employer is not required to inquire about or record the reason for the employee’s use of paid leave.
Government employees who receive one day of paid sick leave per month or who participate in an annual leave program in lieu of paid sick time are compliant with these accrual requirements.
Editor’s note — Most employing brokers hire licensees under independent contractor agreements. Paid sick leave laws do not apply to independent contractors.
However, brokers and agents may opt to enter into an employer/employee relationship. In that case, employed licensees are entitled to paid sick days. Additionally, real estate brokers are subject to these new requirements for any non-licensed assistants or administrative staff they employ. No de minimis exemptions exist for small employers.