New Law What is the new sick leave law? Beginning July 1, 2015, California employers must provide a paid sick leave benefit to all employees Only exce

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1 NOVAtime Technology, Inc. presents California Paid Sick Leave Live Webinar ~ August 19, 2015 Featured Panelist: Marie D. Davis of Landegger Baron Law Group, ALC Exclusively Representing Employers Employment Law, Advice, Litigation and Solutions

2 New Law What is the new sick leave law? Beginning July 1, 2015, California employers must provide a paid sick leave benefit to all employees Only exceptions: Certain union employees Certain in-home services Airline cabin/flight deck crews 2 2

3 Minimum Paid Benefit Who benefits and how much? Any employees who work 30+ days/year Must accrue at least 1 hour sick leave for every 30 hours worked Unused days must be carried over from year to year 3 3

4 Alternatives Is there any flexibility in the law? May cap annual usage at just 3 days/year Although must allow carryover of what s not used, may cap the amount of carryover at just 6 days If front load 3 days at beginning of year: No accrual reporting needed No carryover needed Must report usage 4 4

5 Communicating the Law New paid sick leave poster New new hire form to include info on paid sick leave benefits $100 penalty 5 5

6 Qualifying Events Whose illness qualifies? Employee Child (no matter how got there) Spouse or registered domestic partner Grandparents & children Siblings Parent (every kind) including step, foster, adoptive, legal guardian, and loco parentis 6 6

7 Qualifying Events What reasons qualify? Must allow sick leave for: Diagnosis Care Treatment Preventive care Must allow sick leave for victims of: Domestic violence Sexual assault Stalking 7 7

8 Usage Rules When can employees use paid sick leave? Accrual begins on 1st day Can make employees wait 90 days to use what s earned May limit use to 3 days/year Must carry over unused days from year to year, but may cap earnings at just 6 days 8 8

9 Pay Rules When do employees get paid for sick leave? Must pay sick pay in the paycheck immediately after the absence No end of year payout No payout when leave the job, but must reinstate balance if return with 12 months 9 9

10 Accessing Benefits Just ask If need is foreseeable, must ask in advance Law is silent on whether can ask for a doctor s note Can t make employee find a replacement worker 10 10

11 Employee Reporting When must paid sick leave be reported? Accrual and use MUST be reported with each paycheck 11 11

12 Employee Reporting When must paid sick leave be reported? If employee earns different hourly rates and/or commissions or other add-ons, you must calculate sick pay benefit using average pay of previous 90 days 12 12

13 Employee Reporting When must paid sick leave be reported? Salaried employees also must be reported If an unlimited time off policy, still must report accrual and use Existing PTO policy OK if the accrual rate is at least 1 hour per every 30 hours worked 13 13

14 Record Keeping Keep good records! Must keep all wage and sick pay records for at least 3 years Must allow Labor Commissioner access but call your labor lawyer first! If don t keep adequate records, presumed to owe the maximum 14 14

15 Retaliation No retaliation Cannot count sick days usage against the employee in any manner These are legally protected days off 15 15

16 Retaliation Retaliation presumed Employer is presumed guilty of unlawful retaliation if bad things happen to the employee within 30 days of: Using sick days Complaining about sick pay policy Employee filing complaint with government 16 16

17 Penalties & Lawsuits What s at stake? Actual sick pay owed 3x Penalty (max. $4,000) Reinstatement & back pay Penalty: $4,000 max Lawsuit for wrongful termination 17 17

18 Top Questions How is the 30 day requirement calculated? Every employee who works 30 calendar days beginning on July 1, 2015, (or their first day of hire after July 1, 2015) through June 30, 2016, is entitled to sick leave. Even if an employee only works 5 minutes on any single calendar day, that counts as a day for purposes of the law

19 Top Questions How is the 90 th day of employment calculated? Employers can require employees to complete their 90 th day of employment before they can take accrued sick leave. The 90 th day is calculated from their hire date. If someone is hired on or after July 1, 2015, their 90 th day is September 28, 2015, regardless of actual calendar days worked

20 Top Questions How is the 3 day/24 hour use rule calculated? Employers can limit use to 3 days or 24 hours per year. The DLSE has interpreted this as whatever amount benefits employees most. If employees only work 4 hour shifts, then they will be entitled to take 24 hours of leave per year, or 6 days. If an employee works 10 hour shifts, then he/she can take 30 hours, or 3 days of leave per year

21 Amendments Effective July 13, day Rule was clarified to require that employees are only entitled to sick leave if they work for the same employer for 30 days

22 Amendments Effective July 13, 2015 Accrual method has been expanded to allow for one more option: 1 hour for every 30 hours worked 24 up-front hours, or Any other accrual method the employer chooses, so long as the method is consistent, regular and provides all employees with at least 24 hours of sick leave or PTO by the 120 th day of employment

23 Amendments Effective July 13, 2015 Safe Harbor provision for employers with existing sick leave or PTO policies in place prior to January 1, 2015: Employers may keep these policies in place so long as all employees receive no less than 1 day or 8 hours of sick leave or PTO within 3 months of each year of employment; and All employees can accrue 3 days or 24 hours of sick leave or PTO within 9 months of each year of employment. If employers change their sick leave or PTO policies after July 13, 2015, then the new policy must comply with the provisions of the law. This safe harbor provision only protects employers from the accrual requirements of the new law; all other facets of the law, such as the broad definition of family member, are still applicable

24 Amendments Effective July 13, 2015 Employers who have unlimited sick leave or PTO policies, may indicate unlimited on the employee s paycheck stub, instead of recording the actual accrual and use calculations

25 Amendments Effective July 13, 2015 The possible ways of calculating the sick leave pay rate has been expanded: 90-Day Method: Non-Exempt Employees can have their pay rate calculated by dividing the employee s total wages, excluding overtime premiums, by the employee s total hours worked in the full pay periods of the prior 90 days of employment, or Workweek Method: Employers may calculate the sick pay rates by taking the total compensation earned during the workweek, and dividing it by the total hours worked during the workweek, regardless of any overtime rate that may be in effect for that week

26 Amendments Effective July 13, 2015 Sick Leave reinstatement provision was clarified to relieve employers of the duty to reinstate the accrued sick leave for employees who return to work within one year of separation from employment. If the employer pays out any accrued sick leave upon the employee s separation, then there is no requirement to reinstate the employee s unused sick leave

27 Thank you for attending! Landegger Baron Law Group* NOVAtime Technology, Inc. Marie D. Davis, Esq Ventura Blvd., Suite 1200 Encino, California Daily Drive, Suite 325 Camarillo, California Scott Rose, Enterprise Sales 1440 Bridgegate Dr., Suite 300 Diamond Bar, California Headquarters: Los Angeles Office: Ventura County Office:

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