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New Legal Development: California Expands Statewide Paid Sick Leave Law – Part 113: Pain, Yes Gain

Key Changes to California’s Paid Sick Leave Law: January 1, 2024

California Expands Paid Sick Leave Mandate: What You Need to Know

On September 13, 2023, the California legislature passed S.B. 616, expanding the State’s existing paid sick leave mandate, the Healthy Workplaces, Healthy Families Act of 2014. Governor Gavin Newsom signed the bill into law on October 4, 2023, with the law set to take effect on January 1, 2024.

The amendments to the law increase the annual amount of California paid sick leave from three days or 24 hours to five days or 40 hours for eligible employees. This impacts the amount of available paid sick leave employees can use in a year and the amount employers must grant each year to avoid accrual and year-end carryover obligations. The amendments also raise the California paid sick leave accrual cap from 48 hours to 80 hours.

The law does not require documentation for the use of paid sick leave, signaling that documentation should not be necessary when employees use their protected paid sick leave.

California has long been a leader in the paid sick leave space, and with these amendments, the state is set to shake up the paid sick leave landscape for employers across the state, including those with operations in municipalities with local paid sick leave mandates.

Key changes to California’s paid sick leave law include an increased annual paid sick leave usage cap, an alternative accrual rate, an increased rolling accrual cap, and an increased frontload grant to avoid accrual and carryover. The law also impacts employees covered by collective bargaining agreements.

Employers are advised to review existing sick leave or PTO policies, train employees on the new requirements, monitor the California Labor Commissioner’s website for updates, and prepare to update onboarding packets for non-exempt workers.

As the paid leave landscape continues to evolve, companies are encouraged to reach out to their Seyfarth contact for solutions and recommendations on compliance with these laws and paid leave requirements. To stay up to date on paid leave developments, companies can sign up for Seyfarth’s Paid Leave mailing list.

January 1, 2024, is also the date that new paid leave laws in Illinois and Minnesota will go into effect.

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