Governor Jerry Brown signed into law AB 1522, which includes mandatory sick leave law that will affect most employers in California. Accrual for sick leave does not need to start until July 1, 2015. However, after that date, employers must comply with the record keeping and accrual requirements of the law.
If an employee (including part-time, per diem, and temporary employees with specific exceptions) works for 30 days in a year and satisfies a 90-day probationary period, he or she is entitled to take sick leave. Employers are required to accrue a minimum of 1 hour of sick paid leave for every 30 hours worked. The law states that an employer can limit the number of sick days used by an employee in a calendar year to 3 days (24 hours) with a maximum accrual of 6 days (48 hours). However, if an employee works for 6 hours a day, the limit per year is not 18 hours but is 24 hours. Thus, it is possible for an employee to get more than 3 days of sick pay in a year if he or she does not work a full 8 hour work day because the limit is based on 24 hours not on 3 days worked. Some other important requirements include posting a conspicuous notice (see Labor Commissioner Poster), including sick leave availability information on employee pay stubs or a document issued the same day as the paycheck, and providing a Notice to Employee for any employees hired after January 1, 2015. For employees hired before January 1, 2015, an employer has to individually notify each employee about the new law. Employers are also required to keep records showing sick leave earned and used for 3 years.
See the State of California Department of Industrial Relations site for more information and additional guidance.
To set up sick leave items in Quickbooks, see this guide.
Disclaimer: Please note that every individual tax or economic situation is unique. Before you embark on any specific tax or financial position, it is important to consult your tax, financial adviser and/or attorney. The above isn't and shouldn't be construed as tax, financial, professional, or legal advice.
See the State of California Department of Industrial Relations site for more information and additional guidance.
To set up sick leave items in Quickbooks, see this guide.
Disclaimer: Please note that every individual tax or economic situation is unique. Before you embark on any specific tax or financial position, it is important to consult your tax, financial adviser and/or attorney. The above isn't and shouldn't be construed as tax, financial, professional, or legal advice.
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