Payroll › Santa Barbara Financial Payroll Demystifies New Sick Leave Rules Affecting over Six Million Californians

Beginning on July 1, 2015, California has mandated
new important rules governing full and part-time employees

SANTA BARBARA, Calif., June 30, 2015 – Santa Barbara Financial Payroll (SBF Payroll) the provider of fast, accurate payroll services, reports on the new law in California taking effect on July 1, 2015, requiring that all employers must give their full AND part-time employees sick leave. SBF with more than a dozen SBF Payroll offices throughout the United States, (sbfpayroll.com) is taking a direct approach to handle these issues with their clients and to help employers economically meet the strict requirements. The law is called California’s Healthy Workplaces, Healthy Families Act of 2014, and the notice and posting requirements became effective January 1, 2015. It requires the granting of mandatory sick leave starting July 1, 2015. SBF is helping to educate on the intricacies of the new law.

“This new law is straightforward although some of the details can be a bit tricky,” said SBF Founder and CEO Kim Pothe. “We act as a resource and have answered a lot of questions for our clients. This law is very exacting in the requirements it places on employers for both their full and part-time employees.”

Following specific eligibility and accrual responsibilities, employers are sprinting to make sure they are in compliance with the law. “We know it can be difficult and costly for business owners and managers to comply with all the specifics of this new law,” Ms. Pothe said.

“We are offering an economical way to handle all of the tracking and administrative requirements for only $1.00 per employee per check, plus a monthly fee of $10 so all businesses can easily stay in compliance. In addition to the benefits for employees, employers can benefit through reduced turnover and less problems with sick employees coming to work,” Ms. Pothe said.

“AB 1522 aims to reduce the impact that illnesses have on the state’s working families as well as the health and safety of employees in the workplace,” according to a press release for California State Assemblywoman Lorena Gonzalez (D-San Diego), who authored the bill. “Workers without paid sick days are more likely to report going to work with a contagious illness like the flu or a viral infection —and risk infecting others. Working people with paid sick days are more productive and less likely to leave their jobs, which saves businesses money by reducing turnover.”

According to the California Department of Industrial Relations, under AB 1522: “An employee can take up to three paid days or 24 hours off, whichever is greater, for sick time for each 12 month period. There are two options available, the accrual or the advance methods. Under the accrual method, starting July 1st, or on an employee’s start date if after July 1st, the employer must begin accruing sick time at the rate of one hour per 30 hours worked. The employee must be employed at least 90 days before they can take sick time off and be paid. The number of hours paid for each sick day taken will depend on the normal number of hours the employee works each day.

Under the alternate ‘advance method’ of handling sick leave under the law all employees must be given 24 hours of sick leave starting on July 1st, 2015 or their start date if they are employed after July 1st. The employee must work for the employer for a probationary period of 90 calendar days before taking sick leave. On the employee’s 12 month sick leave anniversary date of either July 1st (or their start date if after July 1st, 2015), the employer must give the employee 24 hours to be used in the following 12 month period. Unused sick hours are not carried over from the previous 12 month period. All employees start with the same 24 hours at the beginning of the period.”

Employers must post a notice about the new sick leave for employees and report the sick leave hour balance for each employee for each pay period. An employer must provide paid sick days upon written or oral request. Employers are not required to pay out sick leave hours when an employee leaves the company.

Learn more details about the Healthy Workplace Healthy Family Act of 2014 (AB 1522) here:
http://www.dir.ca.gov/dlse/ab1522.html

California State Assemblywoman Lorena Gonzalez (D-San Diego). (2014). “Earned Sick Days Bill Approved by Senate Labor Committee,” [Press release]. Retrieved from http://asmdc.org/members/a80/news-room/press-releases/earned-sick-days-bill-approved-by-senate-labor-committee

PR Watch, Governor Jerry Brown article (2014). “Paid Sick Days for Six Million Californians to Become Law.” Retrieved from http://www.prwatch.org/news/2014/09/12587/paid-sick-leave-6-million-californians-hailed-step-right-direction

Download Press Release in PDF format -> SBF Payroll CA Sick Leave 6-30-15

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