T AFF REPORT. Steven A. Preston, FAICP, City Manager. Marcella Marlowe, Ph.D., Assistant City Manager SUMMARY

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1 T AFF REPORT Human Resources Department Date: To: From: By: Subject: June 16, 2015 Steven A. Preston, FAICP, City Manager Marcella Marlowe, Ph.D., Assistant City Manager Rayna Ospina, Human Resources Analyst Approval of, Implementing the Healthy Workplaces I Healthy Families Act of SUMMARY On August 29, 2014, California Governor Jerry Brown signed into law AB 1522, known as the "Healthy Workplaces, Healthy Families Act of 2014." AB 1522 establishes statutory regulations governing the administration and accrual of sick leave for all employees. Some new procedures can be, and have been, adopted internally; however, because the new law establishes an obligation to provide higher benefit levels, most notably a requirement to provide paid sick leave for part-time employees, the City Council must adopt new procedures, presented here in. Background On August 29, 2014, California Governor Jerry Brown signed AB 1522 into law. AB 1522, known as the "Healthy Workplaces, Healthy Families Act of 2014," requires employers, beginning July 1, 2015, to provide paid sick leave to any employee who completes thirty (30) days of employment. In expanding the benefit levels, AB 1522 stipulates a procedure for determining the minimum amount of sick leave for employees, as well as a requirement that employees be permitted to utilize their accrued sick leave on their ninetieth (90'h) day of employment. Discussion As noted above, relevant to San Gabriel, there are two primary benefit changes mandated by AB 1522 that must be implemented by the City Council. First, all employees who work for the City must begin accruing sick leave once they have been on payroll for thirty (30) calendar days, based on a minimum formula set by the law. Second, all employees must be permitted to utilize their accrued sick leave once they reach their ninetieth (90'h) day of employment. Implementing AB 1522 for full-time employees is relatively easy. San Gabriel full-time employees currently begin accruing sick leave immediately upon hire at a rate that satisfies the provisions of AB 1522, so the first mandate requires no change.

2 On the other hand, current San Gabriel policy, based on existing Memorandums of Understandings and Resolution No , states that full-time employees may utilize their sick leave after six months of employment. Therefore, to satisfy the terms of AB 1522, this waiting period must be shortened to ninety (90) days. We have already made this change internally; will codify that obligation. However, AB 1522 does not distinguish between full-time and part-time employees, meaning that the City must now extend paid sick leave benefits to part-time employees as well. Since San Gabriel has never done this, establishes provisions for that employee category. Under AB 1522, there are two alternative methods for providing and tracking paid sick leave for our part-time employees: the accrual method and the frontload method. Based on the analysis of our Finance Department, who will be administering the sick leave accrual program via payroll, it is preferable to utilize the frontload method. In addition to being more straightforward, we do not currently have the technology to do the tracking necessary to utilize the accrual method. As a result, part-time employees who work more than thirty (30) days will be credited twenty-four (24) hours of sick leave per year, effective July 1, 2015, and will be eligible to use those hours after they have been employed for ninety (90) days. Fiscal Impact As presented by Finance Director Marston at the budget workshop on Thursday, April16, 2015, the estimated cost of implementing AB 1522 is approximately $76,000 annually, although it's somewhat difficult to predict since the cost will vary based on the number of part-time employees on staff. Recommendation Staff recommends that the City Council approve, adopting the Healthy Workplaces, Healthy Families Act of Attachment

3 RESOLUTION NO A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN GABRIEL, ADOPTING AND IMPLEMENTING THE HEAL THY WORKPLACES I HEAL THY FAMILIES ACT OF ARTICLE 1. SUMMARY OF THE ACT Effective July 1, 2015, California law AB 1522, known as the Healthy Workplaces I Healthy Families Act of 2014 (hereafter referred to as "the Act"), requires that all employees who have worked in California for 30 or more days within a year from commencement of employment be provided paid sick leave. The Act includes language specifying minimum accrual procedures and hours. Traditional sick leave policies can also be used, so long as they provide the minimum requirements. ARTICLE 2. FULL-TIME EMPLOYEES There are no changes to the accrual method or procedure for full-time employees, except for the following: 1. Availability. Full-time employees are eligible to utilize their accrued sick leave on their ninetieth (90th) day of employment, provided that such sick leave is utilized for hours that they were actually and previously scheduled to be worked. ARTICLE 3. PART-TIME EMPLOYEES 1. Accrual Method. The City of San Gabriel elects to utilize the frontload method of crediting part-time employees for sick leave. All part-time employees will be credited twenty-four (24) hours of paid sick leave per year, once thirty (30) calendar days have passed since their hire date, provided that they are still employed. 2. Availability. Part-time employees are eligible to utilize their accrued sick leave on their ninetieth (90th) day of employment, provided that such sick leave is utilized for hours that they were actually and previously scheduled to be worked. If an employee does not use his/her accrued sick leave during the twelve (12) month period, the unused leave will not be carried forward. Instead, a new allocation of twenty-four (24) hours will be credited at the beginning of the next year. ARTICLE 4. UTILIZATION OF SICK LEAVE 1. Reasons for Leave. Paid sick leave pursuant to these provisions may be used for one of two purposes.

4 a. For the diagnosis, care, or treatment of an existing health condition of, or preventive care for, the employee or the employee's family member. For purposes of paid sick leave pursuant to these provisions, "family member" means any of the following: i. A child (including biological, adopted, or foster), stepchild, legal ward, or a child to whom the employee stands in loco parentis. This definition of a child is applicable regardless of age or dependency status. ii. A biological, adoptive, or foster parent, stepparent, or legal guardian of an employee or the employee's spouse or registered domestic partner, or a person who stood in loco parentis when the employee was a minor child. iii. A spouse or registered domestic partner. iv. A grandparent or grandchild. v. A sibling. b. To obtain relief or services related to the employee being a victim of domestic violence, sexual assault, or stalking, including the following with appropriate certification of the need such services: i. A temporary restraining order or restraining order. ii. Other injunctive relief to help ensure the health, safety, or welfare of the employee or his/her children. iii. To seek medical attention for injuries caused by domestic violence, sexual assault, or stalking. iv. To obtain services from a domestic violence shelter, program, or rape crisis center as a result of domestic violence, sexual assault, or stalking. v. To obtain psychological counseling related to an experience of domestic violence, sexual assault, or stalking. vi. To participate in safety planning and take other actions to increase safety from future domestic violence, sexual assault, or stalking, including temporary or permanent relocation.

5 2. "Call In" Procedure. For procedures that are altered for full-time employees or developed for part-time employees, each department shall be responsible for implementing and administering its own "call in" procedure, subject to preliminary consultation with the Human Resources Department. However, if the need for paid sick leave is foreseeable (i.e. doctor's appointment), the employee shall provide reasonable advanced notification. If the need for paid sick leave is unforeseeable, the employee shall provide notice of the need for the leave as soon as practicable. ARTICLE 5. ADMINISTRATIVE PROCEDURES 1. Rate of Pay. The rate of pay shall be the employee's hourly wage. If the employee in the 90 days of employment before taking paid sick leave had different hourly pay rates or was a non-exempt salaried employee, then the rate of pay shall be calculated by dividing the employee's total wages, not including overtime, by the employee's total hours worked in the full pay periods of the prior 90 days of employment. 2. Notification by Employer of Available Leave. The City shall provide employees with written notice that sets forth the amount of sick leave available. 3. Minimum Increment for Use. Although an employee may generally determine how much paid sick leave he/she needs to use, the City hereby establishes two (2) hours as the minimum increment that may be used for paid sick leave. 4. Usage. In using paid sick leave, employees may only utilize as many hours of leave as they missed. For example, if an employee was scheduled for a three (3) hour shift and missed the entire shift, they would utilize three (3) hours of sick leave. If an employee was scheduled for an eight (8) hour shift and missed four (4) hours for eligible reasons, then the employee would utilize four (4) hours of sick leave. Shifts with an Indefinite End Time. If an employee misses a shift with an indefinite end time, then he/she will utilize the number of hours of sick leave that person who is called in to substitute ends up working. For example, if an employee at the Mission Playhouse is scheduled to work a shift that begins at 6pm and concludes when the show ends, then calls in sick, and the replacement worker ends up working until 11 pm, then the sick employee will utilize five (5) hours of sick leave (6pm-11 pm). If the replacement worker only ends up working until 9pm, then the sick employee will utilize three (3) hours of sick leave (6pm- 9pm). 5. Overtime Consideration. Paid sick leave will not be considered hours worked for purposes of overtime calculation.

6 6. Compensation for Unused Sick Leave. Unless provided for elsewhere, the City will not compensate employees for accrued, unpaid sick days upon termination, resignation, retirement, or other separation from employment. 7. Reinstatement with the City of San Gabriel. a. Full- Time Employees. If a full-time employee separates from the City and is rehired within one (1) year from the date of separation, any previously accrued and unused paid sick days shall be reinstated. The employee shall be eligible to continue to accrue additional sick leave hours, per the City's current accrual policies. If the employee previously met the ninety (90) day requirement in order to utilize his/her sick leave, he/she shall not have to do so again. b. Part-time Employees. If a part-time employee separates from the City and is rehired within one (1) year from the date of separation, the reinstatement of his/her previously accrued leave shall be moot, so long as the City continues to utilize the frontload method of crediting sick leave. If the employee previously met the ninety (90) day requirement in order to utilize his/her sick leave, he/she shall not have to do so again. Provisions in this Resolution shall supersede any previously adopted conflicting provisions. PASSED, APPROVED AND ADOPTED ON this 16th day of June, ATTEST: Jason Pu, Mayor City of San Gabriel, California Eleanor K. Andrews, City Clerk City of San Gabriel, California

SAN DIEGO, CALIFORNIA CITY OF SAN DIEGO EARNED SICK LEAVE AND MINIMUM WAGE ORDINANCE

SAN DIEGO, CALIFORNIA CITY OF SAN DIEGO EARNED SICK LEAVE AND MINIMUM WAGE ORDINANCE Covers workers who, in one or more calendar weeks of the year performs at least 2 hours of work within the geographic