If you're a business owner with employees in California, you most likely need to offer your employees paid sick leave. That's because there's the Healthy Workplaces, Healthy Families Act of 2014, enforced by the California Department of Industrial Relations (DIR).
This California paid sick leave law provides most employees in the state with paid time off if they need to be absent from work for medical reasons or to take care of an ailing family member.
Not familiar with the California paid sick leave law? We're here to help.
Does the California sick time law apply to my business?
Most likely.
The California paid sick leave law applies to employers of all sizes.
Its benefits must be extended to almost all employees who have worked in the state for the same employer for at least 30 days in a 12-month period. That includes full-time, part-time, and temporary employees.
The exceptions are:
Employees covered by qualifying collective bargaining agreements,
Airline flight deck and cabin crew members who receive equivalent time off, and
Retired individuals who work for government entities and receive annuities.
Railroad employees, who get at least 5 days of unpaid sick leave a year under separate rules instead.
This law applies to any California-based employees that you have, so you're on the hook to be compliant even if your business is based in another state.
One more timing detail worth knowing: eligibility and usage aren't the same milestone. An employee qualifies for paid sick leave after 30 days with you, but they can't actually take it until they've completed 90 days on the job. You're welcome to let them use it sooner — the law just doesn't require you to.
Okay, got it. How much paid sick leave do I need to give my employees?
The exact amount of paid sick leave that you need to give your employees can vary. That's because you can comply with the California paid sick leave law in a few different ways.
Let's run through each option.
A) The accrual method: 1+ hours for every 30 hours worked
In this default method, your eligible employees will start to earn at least one hour of paid leave for every 30 hours worked as soon as they begin their employment. They can start using this accrued paid sick leave on the 90th day of employment.
As an employer, you can:
Limit the amount of paid sick leave employees use each year to 40 hours, or five days, and
Cap total accrued hours at 80 hours, or 10 days.
The year starts on the employee's hire date, and any unused paid sick leave carries over into the next year.
B) The lump sum method: 40+ hours per year
You can also offer your employees a set amount of paid leave upfront.
To choose this option, you need to make at least 40 hours, or 5 days, of paid leave available at the beginning of each 12-month period. These hours can be specifically for sick leave, or they can be earmarked for different uses, as long as those uses include sick leave.
For an employee's first year, you have a bit more runway to phase it in: 24 hours (3 days) needs to be available by their 120th day of employment, and the full 40 hours (5 days) by their 200th day.
New hires still have to wait 90 days before they can use their sick leave.
C) The grandfathered policies: see details
If you had a paid time off (PTO) or paid sick leave policy in place before January 1, 2015, your policy may be grandfathered in if an employee can accrue:
At least 8 hours, or 1 day, of paid sick leave or PTO within the first three months of employment every year, and
At least 40 hours, or 5 days, within six months of employment.
D) The unlimited method: unlimited
You can also skip all the numbers and provide an unlimited paid time off policy.
Are there any city-specific laws on top of the state law?
Yep. Several areas in California have their own paid sick leave law in addition to the state regulations. These include:
Berkeley
Emeryville
Long Beach
Los Angeles
Oakland
San Diego
San Francisco
Santa Monica
West Hollywood
Some of the laws cover all workers while others only apply to certain types. For example, Long Beach's paid sick leave is specific to hotel workers.
Employers are responsible for ensuring they comply with both state and local regulations. Where sick time laws differ between the state and local rules, you must offer the most generous paid sick leave option to your employees.
What can my employees use the paid sick leave for?
Your employees can request to use their paid sick time either verbally or in writing. As long as they give notice, you must let them use their accrued and available sick leave without any adverse consequences.
Acceptable uses of paid sick leave include:
Diagnosis, care, or treatment for an existing health condition
Preventive care
Jury duty or appearing in court as a subpoenaed witness
Attending judicial proceedings if the employee or a family member is a victim of certain crimes
That medical care can be for the employee or a family member. Eligible family members include:
Spouses
Registered domestic partners
Children
Parents
Grandparents
Grandchildren
Siblings
One "designated person" the employee names when they request leave — you can limit this to one designated person per employee per 12-month period
Employees can also take paid sick leave to get medical care, psychological counseling, or other services if they or a family member are victims of domestic violence, sexual assault, or stalking.
If your team includes agricultural workers, there's one more covered reason: they can use paid sick leave to avoid unsafe smoke, heat, or flooding conditions during a declared state or local emergency.
Anything else I need to know to be compliant with the California paid sick leave law?
Here are a few other things you must do as an employer:
Display this poster in a place where employees can easily see it. If you have employees in San Francisco, you can use this poster that combines both the state and city requirements.
Give all employees a written notice of the California paid sick leave benefits when you hire them.
Make sure your employees know how many paid sick days they have left. This information can be shared on a paystub or via a document sent on the same day as their paycheck. If you offer unlimited PTO, you must indicate that paid sick leave is unlimited.
Finally, you must record how many hours have been earned and used and maintain these records for three years.
Do I need to pay out unused paid sick leave?
PTO payout laws can be confusing. Unless your company's policy says there will be a payout for unused paid sick time, you don't need to pay out unused sick days when an employee leaves.
However, if an employee leaves your company and is rehired within one year, that employee can reclaim the previously accrued paid sick leave—as long as it was not already paid out.
Have more specific questions about your situation? Since the ins and outs of the California paid sick leave law can be tricky, consult an HR professional to help you stay compliant.
FAQs
Does the California paid sick leave law apply to all employers?
Yes. The law applies to employers of all sizes and covers nearly all employees — full-time, part-time, and temporary — who work in California for the same employer for at least 30 days within a 12-month period. Narrow exceptions apply to certain unionized workers, airline flight crew, retired government annuitants, and railroad employees (who get a separate unpaid leave benefit instead).
How much paid sick leave do employers have to provide in California?
It depends on which method the employer uses: at least 1 hour per 30 hours worked (accrual method, capped at 40 hours/5 days of use and 80 hours/10 days of accrual per year), at least 40 hours/5 days provided upfront each year (lump sum method), a qualifying grandfathered PTO/sick policy from before January 1, 2015, or an unlimited PTO policy.
Are there city-specific sick leave laws in California in addition to the state law?
Yes. Berkeley, Emeryville, Long Beach, Los Angeles, Oakland, San Diego, San Francisco, Santa Monica, and West Hollywood all have their own paid sick leave ordinances. Where local rules are more generous than the state law, employers must follow the more generous option.
What can employees use California paid sick leave for?
Employees can use it for diagnosis, care, or treatment of an existing health condition, preventive care, or care for a qualifying family member (spouse, domestic partner, child, parent, grandparent, grandchild, sibling, or one designated person named at the time of the request). It also covers services related to domestic violence, sexual assault, or stalking; jury duty or a subpoenaed court appearance; and judicial proceedings when the employee or a family member is a crime victim. Agricultural employees can also use it to avoid unsafe smoke, heat, or flooding conditions during a declared emergency.
Do employers have to pay out unused sick leave when an employee leaves?
No, not unless the company's own policy states otherwise. However, if a former employee is rehired within one year, they can reclaim their previously accrued (and unpaid) sick leave balance.
