In recent years, there has been a growing trend in the U.S. to provide paid sick leave for employees, with California being one of those states. While many states don’t require paid sick leave, California mandates it. Senate Bill 616 (SB 616) was introduced on February 15th, 2023, and would increase the number of paid sick leave days for California employees by amending Labor Code Section 246. Labor Code Section 246, also called the California Paid Sick Leave Law, requires employers to provide and allow employees to use at least 24 hours, or three days, of paid sick leave per year.
Under the current law, employees must work for at least 30 days for the same employer in a 12-month period in order to qualify. The accrual begins on the employee’s hire date. Employers can limit the paid sick leave employees can use in one year to 24 hours or three days.
Understanding SB 616
If SB 616 passes, it would raise the employer’s authorized limit on paid sick leave to seven days or 56 hours. The current law in California allows an employer to limit an employee’s total accrual of paid sick leave to 48 hours or six days, provided that an employee’s rights to accrue and use paid sick leave are not otherwise limited. SB 616 would increase those accrual thresholds for paid sick leave to 112 hours or 14 days for unused sick time. In addition, SB 616 would increase the sick leave accrual rate for providers of in-home supportive services and waiver personal care services to 56 hours or seven days each year of employment. SB 616 applies to all employees who work in California for the same employer for at least 30 days within a year from the start of employment.
You are not required to accrue or carry over paid leave if employees receive their full amount of leave at the beginning of each calendar year or 12-month period. In addition, you’re not required to compensate employees for their accrued, unused sick days upon termination, resignation, or retirement.
If passed, SB 616 would go into effect beginning January 1st, 2024.
Your Responsibility As A Business Owner
As a new bill is waiting for approval, it’s essential as a business owner to take proactive steps to ensure you comply with the new law. If you’re a business owner in California, consider revising your current leave policies, if needed. The bill will require you to provide a written notice about the amount of paid sick leave available. At GMS, we understand this can be overwhelming and challenging to handle on your own. When you partner with us, we provide you with a hands-on approach and tackle these challenges together. Our HR experts will implement new HR policies in your handbook, write your written notice in reference to the updated paid sick leave bill, and so much more. Let us help you sleep peacefully at night and contact us today to get started!