DiSabatino CPA Blog

Mike DiSabatino CPA

4 minutes reading time (742 words)

California - Healthy Workplace Healthy Family Act of 2014 (AB 1522)

California - Healthy Workplace Healthy Family Act of 2014 (AB 1522)

California - Healthy Workplace Healthy Family Act of 2014 (AB 1522)

IMPORTANT REQUIREMENTS FOR ALL EMPLOYERS

Earlier this year, the California Legislature passed the Healthy Workplace, Healthy Families Act of 2014 (“HFA”) which requires all employers with employees within the State of California, regardless of size, to provide paid sick leave to employees.

Starting January 1, 2015, employers must display a poster created by the Labor Commissioner informing employees of their rights under the HFA.

A copy of this poster can be found at HERE. Employers must also provide new hire notices under Labor Code § 2810.5 which include an explanation of employees’ rights to use and accrue paid sick leave. A template of the updated new hire notice is also available HERE.

While the notice requirements begin January 1, employees’ right to use and accrue sick leave under the law does not begin until July 1, 2015. Starting July 1, 2015, all employees, whether full-time, part-time, temporary or exempt, are entitled to paid sick leave as long as they work 30 or more days in California within one year. Even employers located outside of California must provide paid sick leave in compliance with the HFA to any employee who works at least 30 days in California.

Employers can comply with HFA by providing paid sick leave under one of two methods. Under a normally used accrual method, employees must, at minimum, accrue one hour of paid sick leave for every 30 hours worked. Accrued sick leave must carry over year to year, but employers can cap the accrual at no less than 48 hours (six days). While employees are entitled to accrue up to 48 hours of paid sick leave, an employer can limit an employee’s use of paid sick leave to 24 hours (three days) in any one year.

Alternatively, employers may provide employees with a lump sum of no less than 24 hours (three days) of paid sick leave at the beginning of each year. Under this option, the full 24 hours of leave must be available at the beginning of each year for each employee to use during the calendar year.

Employees must be allowed to use paid sick leave for the diagnosis, care, treatment or preventative care of a health condition of the employee or the employee’s family member. Family member specifically includes children, parents, spouses, registered domestic partners, grandparents, grandchildren and siblings. Paid sick leave can also be used for leave related to domestic violence, sexual violence and/or stalking. Importantly, employees are entitled to begin using paid sick leave after their 90th day of employment and must be allowed to take leave in increments of two hours or less.

Finally, each pay period, employers must provide written notice to employees of the amount of paid sick leave available either on employees’ itemized wage statements or in a separate writing provided on the designated pay date. Employers must keep records of employees’ hours worked and paid sick days accrued and used for at least three years.

Unlike vacation time or paid time off, employers do not need to issue payment for paid sick leave to employees upon termination of employment. Also, employers who already provide paid time off are not necessarily required to provide additional paid sick leave as long as the employer provides a minimum of 3 days a year, in two hour increments, and provides proper notice to its employees. If an employer’s paid leave policy complies with the requirements of the HFA, no additional sick leave policy is required.

Employers should begin reviewing their paid leave policies to determine if they comply with HFA – specifically whether they provide for all employees to accrue at least one hour of paid leave for every 30 hours worked or provide a full 24 hours of leave each year which can be used for the same purposes as provided in the HFA. Employers need to bring their leave policies into compliance with the HFA no later than July 1, 2015.

Please give us a call to discuss this or any of our other topics with you, so we can address your specific requirements.

DiSabatino CPA
Michael DiSabatino
651 Via Alondra Suite 715
Camarillo, CA 93012
Phone: 805-389-7300
ww.sharpcpa.com

This publication provides summary information regarding the subject matter at time of publishing. Please call with any questions on how this information may impact your situation. This material may not be published, rewritten or redistributed without permission, except as noted here.  All rights reserved.

1
They Won't Fix My 1099!
January 2015 DiSabatino CPA Newsletter

Related Posts

 

Speed Up Your Success!

Contact Us Today: 1-805-389-7300

© 2006-2018 Michael DiSabatino, CPA. All Rights Reserved.