Although the California Department of Industrial Relations issued "Frequently Asked Questions" (FAQs) to address of the gaps in the Paid Sick Leave Law, California Legislators rushed to pass AB 304 to bandage the Act's obvious wounds. 

The Amendment provides for the following key changes and clarifications: 

• Same Employer: An employee must work for the same employer for 30 or more days within a year from the commencement of his or her employment to be eligible for paid sick days.

• Additional Accrual Method:  In addition to the method discussed above (one hour of paid sick leave for every 30 hours worked), employees can accrue a set amount per pay period or quarter provided the employees earn no less than 24 hours of paid sick time by the 120th calendar day of the year. 

• Grandfathered Policies:  Although too late for employers who revised their policies to comply with the Act, the Amendment allows for certain policies to be grandfathered in.  Current paid sick leave policies that were in effect on January 1, 2015 will be considered compliant with the Act, if: (1) employees accrue no less than one day or eight hours of accrued sick leave within three months of employment of each year; and (2) employees were eligible to earn at least three days or 24 hours of sick leave or paid time off within nine months of employment. 

• Paid Sick Leave Payout:  The Amendment provides that if an employee separates from an employer and is rehired by the employer within one year, the employer is not required to reinstate accrued paid sick time to an employee who was paid out for their accrued but unused sick leave at the time of termination, resignation, or separation of employment.

• Unlimited Paid Time Off:  Employers providing unlimited PTO can satisfy the notice requirement of quantifying the amount of paid sick leave available to an employee, by indicating "unlimited" on the employee's itemized wage statement.

• Rate of Pay for Paid Sick Leave:  Paid sick time for nonexempt employees shall be calculated by dividing the employee's total wages, not including overtime premium pay, by the employee's total hours worked in the full pay periods of the prior 90 days of employment.  Paid sick time for exempt employees shall be calculated in the same manner as the employer calculates wages for other forms of paid leave time.

• Records:  An employer is not obligated to inquire into or record the purposes for which an employee uses paid leave or paid time off.

TAKE AWAY:  This law affects all employers, regardless of size.  Employers should review their employee handbooks to ensure any existing policy is compliant.  All employers, whether they have an existing policy or are initiating a new policy, must make sure they meet the posting and notice requirements.

Our team of employment law attorneys are available to answer any questions you may have about the Paid Sick Leave Law and its Amendment.