An increase to Paid Sick and Safe Leave (PSSL) will take effect on January 1, 2024.

The annual use cap of PSSL will increase from 3 days or 24 hours (whichever is greater) to 5 days or 40 hours (whichever is greater) whether frontloaded or accrued.

If your company uses the accrual method, employees must accrue 40 hours by the 200^th day of employment or in each 12-month period. This accrual target can be achieved with 1 hour of PSSL for every 30 hours worked. If you use an alternative accrual method, you will need to ensure that employees receive the full 40 hours by their 200^th day of employment and the same amount by the 200^th day in each subsequent year.  As with the current law, any unused accrued PSSL must be carried over to the next year up to an accrual cap of 10 days or 80 hours. (The current accrual cap is 6 days or 48 hours)

If using the frontload method, state law allows employers to avoid carryover of unused PSSL, but keep in mind that local ordinances may require carryover of frontloaded leave.

As a reminder, full-time, part-time and temporary workers are eligible for PSSL if they work for the same employer for at least 30 days within a year in California and complete a 90-day employment period before taking any paid sick leave. An employee covered by a collective bargaining agreement is not covered by the law if the agreement provides paid sick days or paid time off.

SB 616 preempts certain provisions of local sick leave laws.  Specifically, state law will need to be followed in these areas:

• End of employment payout of employees’ unused sick leave
• Employer advancement of (unaccrued) sick days to employees
• Employer written notice requirement regarding available leave
• Rate of pay calculations for employees’ actual sick leave taken
• Employee notification for foreseeable and unforeseeable use of sick leave
• Timing of payment to employees for paid sick leave used