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On October 4, 2023, Governor Newsom signed Senate Bill (SB) 616 which requires employers to offer a minimum of 5 days, or 40 hours, of sick leave by January 1, 2024. Previously under the Paid Sick Leave Law (PSLL), employers were only required to offer a minimum of 3 days, or 24 hours.
With SB 616, employers are required to provide sick leave through either an accrual model or a lump sum model.
Accrual is set at a rate of 1 hour for every 30 hours worked, resulting in 24 hours of accrued sick leave by the 120th calendar day of employment and no less than 40 hours of accrued sick leave by the 200th calendar day of employment. Accrued paid sick days may carry over to the following year of employment but an employer may limit an employee’s use of accrued paid sick days to 5 days, or 40 hours, in each year of employment. Employers may set an overall accrual cap of paid sick leave at 80 hours or 10 days.
The Lump Sum method allows employers to provide 5 days, or 40 hours, all at once for immediate use. This method allows employers to avoid accrual requirements and does not require carryover.
Employers should review their paid sick leave policies before January 1, 2024 for compliance and determine which method may be more suitable for their business. If you have any questions, please contact Ann Grottveit at agrottveit@kscsacramento.com.
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