Unpacking SB 616: An Expansion in California's Paid Sick Days

Overview of SB 616: Changes to Paid Sick Leave in California

The recent passage of SB 616 brings several changes to the paid sick leave provisions in California. Here's a detailed breakdown of its key components:

Adjustment in Paid Sick Leave Duration

1. • Old provision: Eligible employees were allowed three days or 24 hours of paid sick leave per year.
   • New provision under SB 616: The duration has been increased to five days or 40 hours annually.
   
   

   Modified Accrual Ceiling

   • Previously, the maximum accrual limit was 48 hours.
   • SB 616 has revised this limit to 80 hours.
   
   

   Enhanced Anti-Retaliation Provisions

   • The existing provisions protecting employees from retaliation have been broadened. The revised law now encompasses employees under a valid Collective Bargaining Agreement (CBA).
   
   

   Specific Exemption for Railroad Carrier Employers

   • The new bill specifically excludes railroad carrier employers and their employees from its provisions.
   
   

   Consistency with Local Ordinances

   • In cases where local rules differ from the state law, especially in procedural, notice, and usage terms, SB 616 will take precedence to maintain uniformity.

   Legal Code References

   • SB 616 makes modifications to Sections 245.5, 246, and 246.5 of the Labor Code.

Conclusion: SB 616 introduces several changes to the paid sick leave policies in California. It is essential for both employers and employees to be aware of these adjustments to ensure compliance and understanding within the workplace.

Employers Guardian Action Items

Employer’s Guardian will be:

• Updating your current sick leave policies and producing an updated 2024 handbook.
• Provide a personalized memo detailing the regulatory updates for direct distribution to your employees.
• Modifying sick leave-related accrual profiles to match the updated CA-PSL requirements for EG Payroll Clients.

Each California employer currently provides their employees sick leave in one of the three methods outlined below. Employer’s Guardian will take the steps based on the client’s current method of sick leave:

1. Accrual Method:
   • Using an accrual-based method, EG will increase the maximum carryover cap from 48 to 80 hours for clients. The annual accrual rate will not need to be increased.
2. Grant Method:
   • Calendar Year Update (Effective January 1, 2024): The Paid Sick Leave allowance for employees will increase from 24 to 40 hours, with the new grant starting on January 1, 2025, and annually thereafter.
   • Anniversary Date Adjustment: Employees will receive a one-time increase of 16 hours effective January 1, 2024. Subsequently, a grant of 40 hours will be provided on each employee's anniversary date.
   • Adjustment for Other 12-month Periods: A similar increase of 16 hours will be effective from January 1, 2024, with the subsequent 40-hour grant being provided in the company-defined 12-month period.
3. PTO Method:
   • Clients using a PTO plan to comply with CA-PSL will receive individual policy reviews to ensure alignment with the amended CA-PSL requirements. The focus will be on adjusting the accrual rate to meet or exceed a factor, allowing 40 hours of accrual before the 200th day of continuous work. If changes are needed, the EG team will proactively reach out to discuss and implement the necessary options.
4. Local Regulations Note: 
   • Please be aware that local regulations concerning paid sick leave remain unchanged and continue to be in effect. These will apply if the provided benefits meet or surpass the newly amended California Paid Sick Leave (CA-PSL) requirements.

These actions reflect our commitment to providing up-to-date, compliant, and efficient workforce management solutions. Employers Guardian is dedicated to ensuring that these transitions are smooth and beneficial for your business and your employees.

Client Action Items: Your proactive approach is key to a smooth transition. Here’s how you can collaborate:

• Review Individual Memos: Understand the specific changes applicable to your business and prepare to communicate these effectively to your employees.
• Engage with EG's Teams: Contact our EGHROD or EGPayroll teams for any queries or clarifications, ensuring you are fully informed and prepared.