California employers avoid sick leave bombshell

California employers may not be aware of it, but they have all dodged a bullet. A controversial new law, Assembly Bill 2716, that would have required all California employers to provide paid sick leave to all employees will not be adopted during this legislative session. The California Senate Appropriations Committee recently decided to hold up consideration of AB 2716.

Overview of AB 2716

AB 2716 was modeled after San Francisco’s sick leave regulation - which was that paid sick days had to be provided to employees for the employee’s personal illness, to care for sick family members, or to recover from domestic violence or a sexual assault. The bill covers all employees, including government employees. However, it does not cover employees covered by a collective bargaining agreement that provides paid sick days.

Under the new bill, after working for seven calendar days, full and part-time employees accrue paid sick days at a rate of one hour per 30 hours worked. Employees can then use this accrued, paid sick time beginning on the 90th calendar day of employment, after which the paid sick days can be used as they are accrued. Employees would be allowed to carry over unused, accrued sick time from year to year.

Employers would be allowed, however, to limit the number of paid sick days accrued each year. “Small business employers” (10 or fewer employees) could limit employees to 40 hours or five sick days each year. All other employers could set limits of 72 hours or nine sick days per year.

Under the new bill, employers would not be required to pay employees for their accrued, unused sick time at termination or resignation. However, if an employee leaves an employer and is rehired by the same employer within one year, the employer would have to reinstate any previously accrued, unused paid sick days.

A marked change from current sick leave laws

Under current California law, employers are not required to offer sick leave to employees – although many do. Also, currently in California, if sick days are offered, they do not accrue nor vest, meaning that any unused sick leave may be forfeited at the end of a designated period of time.

Assembly Bill 2716 would change all this. And the change may be coming. The California Labor Federation (AFL-CIO) has promised to work to reintroduce the bill in the 2009 legislative session.

Employers, if you want input on this potential legislation, contact your local Chamber’s governmental committee.