Labor & Employment Newsletter

Department of Labor Update Regarding Paid Sick Leave

        Effective July 13, 2015, there were changes in California legislation (AB 304) pertaining to paid sick leave for California employees.  Subsequently on August 7, 2015, the labor commissioner issued an opinion letter stating that employees are entitled to 24 hours or 3 days of paid sick leave, whichever is greater, based on the regular work day.

         This request for clarification arose based on an ambiguity in AB 304 regarding how “three days or 24 hours” maximum accrual of paid sick leave is to be interpreted by employers to ensure application consistent with the legislative intent of AB 304.  Susan A. Dovi, Attorney for the Labor Commissioner states in the opinion letter:

         “Because this statutory language specifies a minimum labor standard, and in order to give effect to this minimum standard for all employees, including those that may work more or less than eight hours per day, the language must necessarily be interpreted as requiring “24 hours or three days” of paid sick leave, whichever is more for an employee.”

            How does this change the paid sick leave policy?  First, this opinion from the Department of Labor applies to both the up-front and accrual methods.  Using the example of an employee that works a 10 hour workday, that employee would be entitled to 30 hours (three days at 10 hours per day) of paid sick leave.  An employee that works 8 hours per day or less will be entitled to 24 hours of paid sick leave.

            Ms. Dovi goes on to clarify that if there is an employee that works less than 8 hours per day (e.g., four hours or six hours per day), “…the employer may not limit the employee’s use of accrued sick leave to only “three days.”  Doing so would undercut the alternate standard of 24 hours of paid sick leave for that employee…”  This reemphasizes that an employee is entitled to 24 hours or 3 days, whichever is greater, as the legislative objective of the Healthy Workplaces, Health Families Act of 2014 and AB 304 is to provide low wage workers with at least 24 hours of annual paid sick leave.

            Until now the Labor commissioner has not clarified her enforcement position on this issue. With this published opinion letter, employers are now on notice.  These changes take effect immediately.  A copy of the Opinion from the Department of Labor is available to view at http://www.dir.ca.gov/dlse/opinions/2015.08.07.pdf

 

For more information, contact Terry O'Connor.

DISCLAIMER: This newsletter is published as a service to my friends and clients. It is not intended to provide legal advice, but rather to make you aware of developments of interest to you.