BUSINESSES MUST COMPLY STARTING JANUARY 1, 2017

The City of Santa Monica (City) has enacted a city-wide paid sick leave and minimum wage ordinance (Ordinance No. 2515).  See, our blog “City of Santa Monica Increasing Minimum Wage Annually from 2016 to 2020” (May, 2016)

Effective January 1, 2017, Ordinance No. 2515 requires all employers, no matter where located, to provide paid sick time to every employee who works for at least two hours “in a particular week” within the geographic boundaries of the City and who is legally “entitled to a payment of a minimum wage” (Employees).  Click here to find out if a particular address is located within those city limits.

Employers with 26 or more Employees shall provide:

• On January 1, 2017 at least 40 hours of accrued paid sick leave.
• On January 1, 2018 at least 72 hours of accrued paid sick leave.

Employers with 25 or fewer Employees shall provide:

• On January 1, 2017 at least 32 hours of accrued paid sick leave.
• On January 1, 2018 at least 40 hours of accrued paid sick leave.

Employers must provide either:

• One hour paid sick leave for every 30 hours worked (“accrual method”). Under this method, any unused sick leave will carry over from year to year (fiscal year, calendar year, or anniversary date) up to the accrual limit shown above; or
• The full amount of required paid sick leave at the start of each calendar year, fiscal year or anniversary date (“front load method”), in which case unused sick leave need not carry over from year to year.

Although paid sick leave will begin to accrue at the commencement of employment, an employee may not use accrued paid sick leave until after the first 90 days of employment or consistent with the employer’s policies, whichever is sooner.

Employees may use some or all of their accrued paid sick leave benefit amount at any time (following the first 90 days of employment).

Employers must conspicuously post the City’s current official Notice in English, Spanish or any other language spoken by at least five percent of the workforce. Employers must also provide new hires the employer’s name, address, and telephone number in writing.

As always, if there is a conflict between California state and city paid sick leave laws, the employer must abide by the more employee-favorable provision(s).

Affected employers should ensure their sick leave policies and practices comply with these new standards.  Santa Monica’s online frequently asked questions page provides more information.

For further assistance, please contact one of our attorneys: Tim Bowles, Cindy Bamforth or Helena Kobrin.

Cindy Bamforth

August 25, 2016