Under the January 1, 2024 version of California’s employer-provided paid sick leave Healthy Workplaces, Healthy Families Act of 2014 (Act), employers may opt to provide the benefit either in an up-front lump sum for eligible employees to use during the 12-month eligibility year (the “advance method”) or via accrual over time (the “accrual method”).

Under the accrual method, the updated Act requires employers to either have eligible employees accrue one hour of paid sick leave for every 30 hours worked (the “1:30 statutory accrual method”) or use another regularly recurring accrual method, such as per pay period, so long as employees accrue at least 24 hours by the 120^th day of the 12-month period and no less than 40 hours by the 200^th calendar day (the “optional accrual method”).

Until recently, employers were uncertain whether they were permitted to follow the 1:30 accrual for part-time employees who did not accrue at least 24 hours by their 120^th day of employment or 40 hours by their 200^th day.

The Labor Commissioner’s recently-updated FAQs resolve this ambiguity.

FAQ No. 12 clarifies:

“Although employers may adopt or keep other types of accrual schedules (other than 1:30), the schedule must result in an employee having at least 24 hours of accrued sick leave or paid time off by the 120th calendar day of employment and 40 hours by the 200th calendar day of employment. If an employer is using the 1 hour of paid sick leave accrued for 30 hours worked or something more generous (e.g. 1 hour accrued of paid sick leave for every 20 hours worked), then the employer does not have to provide 24 hours or 3 days by the 120th day of the year and 40 hours or 5 days by the 200th day.” (emphasis added)

Take-Aways:

California employers using the accrual method should use the 1:30 accrual rate for their part-time employees. Otherwise, part-timers must accrue at least 24 hours by their 120th day of employment or 40 hours by their 200th day.

For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.

See also:

• Freedom Between the Lines – Workplace Policy Handbook & Forms for 2024 (March 15, 2024)
• We Offer an Ounce of Prevention; Make a Wage Audit a Priority (February 15, 2024)
• Expanded Paid Sick Leave Requirements; California Employers Must Now Provide 40 Hours or Five Days of Sick Pay (October 11, 2023)

Cindy Bamforth
March 29, 2024