The California paid sick leave requirement is here! While you should have been preparing for the new law since January, the law officially goes into effect today.
Starting today, employees in California who have worked more than 30 days are required to begin earning at least 24 hours of sick time per year, regardless of whether they work part time or full time.
Businesses need to keep accurate track of the time as it is used and accrued. That’s where our time tracking system can hep!
Effective July 1st, 2015 employers in California must offer their employees paid sick leave. This applies to all employers, regardless of size or number of employees.
The law has set some guidelines about accruals and usage. This is not intended to interfere with a company’s current policy but to set a minimum sick leave requirement and to help establish a sick leave policy for companies that didn’t already have one.
Many companies put a limit on accumulated vacation hours, and for good reason. A few years back there was an interesting case that highlights the trouble a company could get into without it.
A Nebraska County employee, Dick Kincaid, had accumulated 688 vacation hours over 30 years. That would amount to a huge payout upon termination of employment or over 17 weeks of vacation if he had decided to take the time off. He didn’t, however, and he was eventually fired for it.
Occasionally, employees need to take more time off than they have accrued. In other words, they want to spend more than they have in the bank.
These requests might come up for any number of reasons: Maybe it’s the holidays and the employee is just shy of what she needs to take off for a holiday trip. Maybe a baby is born prematurely and the parent doesn’t have enough paid time off to swing maternity or paternity leave. Maybe the employee wants to take a vacation during the summer when the kids are out of school but hasn’t accrued enough time since January 1st.
Most people in the US probably don’t realize this but the United States is behind every other developed nation with regard to paid-time-off. Your average American probably thinks that getting paid to take time off is just for the elite. But this is far from the truth. Every other developed nation offers some benefits to postpartum mothers, and many of them offer quite a bit. As President Obama recently told an audience in June at the White House Summit on Working Families: “There is only one developed country in the world that does not offer paid maternity leave, and that is us. And that is not the list you want to be on by your lonesome.”
Whenever a holiday rolls around employers start thinking about how and how much to pay their employees and whether it’s mandatory to pay them at all. Many companies offer 5 to 10 paid holidays per year. This custom has left many employers unclear on whether paying employees for holidays is actually a requirement.
There are a lot of ways to offer accruals to your employees. Probably the most common is to give them their whole lump sum at the beginning of the year or anniversary date. But there are other ways to calculate accruals too. I’ve written a whole post about it here but today I am going to dedicate a whole post on the most complicated method: by hours worked.
For employees who may not be long-termers you can add time to their bank on a monthly or biweekly basis. Or, if you just like being super accurate, you can add time based on the actual number of hours they work each pay period.