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New Required Notice and Expansion of California Paid Sick Leave

January 5, 2024

Question:  I recently learned I must increase the amount of paid sick leave I’m providing to my employees. Is this true?

Answer:  Yes. In October 2023, Senate Bill (SB) 616 was signed by Governor Newsom, amending the Healthy Workplaces, Healthy Families Act of 2014. Effective January 1, 2024, SB 616 increases the amount of paid sick leave employers must provide to most employees from three days (24 hours) to five days (40 hours) per year. Employers need to review and update their paid sick leave policies, provide a “Notice to Employee” form to their employees, and be aware of the following: 

1. Entitlement to Paid Sick Leave

Employees who work at least 30 days for the same employer within a year in California (with limited exceptions) are entitled to paid sick leave. Employees are entitled to five days or 40 hours of paid sick leave per year, whichever is greater. If an employee works 10hour days, the employee will be entitled to 50 hours of paid sick leave. Employers must provide the paid sick leave required by a local ordinance if it is higher than the requirements of state law.

2. Two Methods for Providing Paid Sick Leave

Employers can provide the required paid sick leave one of two ways:

  1. The lump sum method, providing all employees five days (40 hours) of paid sick leave available for the employees’ immediate use on January 1, 2024. Under the lump sum method, unused sick leave does not carry over from one year to the next. If an employee does not use all sick leave in the calendar year, the employee’s sick leave balance will be forfeited on December 31 and the employee will receive 5 days (40 hours) on January 1; or
  2. The accrual method, which allows employees to earn one hour of paid sick leave for every 30 hours worked. Under the accrual method, employers can limit employees’ use of sick leave to 5 days (40 hours) per year, and accrued sick leave will carry over to the next year, up to a cap of 10 days (80 hours) paid sick leave. Employers must adjust the use and accrual caps effective January 1, 2024.

3. Use of Paid Sick Leave

Employees may use paid sick leave starting on their 90th day of employment for the care, treatment or diagnosis of the employee, the employee’s child, parent, spouse, registered domestic partner, grandparent, grandchild, sibling, a designated person, or for use by the employee who is a victim of domestic violence, sexual assault, or stalking.

4. Employee Notice and Employer Posting Requirements

Employers must provide each employee affected by the paid sick leave increase with written notice of their sick leave rights. An updated English version of the “Notice to Employee” which includes information about paid sick leave and wage information is available through the Department of Industrial Relations (“DLSE”) at https://www.dir.ca.gov/dlse/lc_2810.5_notice.pdf. The DLSE has not issued an updated Spanish version. The Notice must be provided by January 8, 2024 unless the employer provides notice of the change in sick leave in a written policy or wage statement.

Employers are also required to display the Paid Sick Leave poster at each worksite in an area frequented by employees. The poster is available here:

https://www.dir.ca.gov/DLSE/Publications/Paid_Sick_Days_Poster_Template_(11_2014).pdf.

A sick leave fact sheet is available here: https://www.dir.ca.gov/dlse/California-Paid-Sick-Leave.html and updated FAQs are available at: https://www.dir.ca.gov/dlse/paid_sick_leave.htm