Author, Megan Lockhart, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

The state of California will officially change the paid sick leave (PSL) law for businesses in 2024. Effective January 1, 2024, the amount of PSL employees can take will increase from 24 hours to 40 hours per year.

The decision to make these increases was approved by Governor Newsom this month and includes two methods of allotting paid sick leave to employees, the accrual method of gaining leave hours over a period of time, and the lump sum method which allots a sum of PSL hours to employees each year.

Employers who provide leave via an accrual system must allow employees to accrue at least 24 hours of PSL by their 120th day of employment, and the entire 40 hours by their 200th day of employment. The accrual method normally follows a rate of 1 hour PSL per every 30 hours worked, however, employers can choose how time is earned as long as it meets the new standards.

If companies provide PSL in a lump sum, they must grant the sum of 24 hours of PSL to employees by no later than their 120th day of employment and they must allot them the rest of the leave (and additional 16 hours) by the 200th day of employment.

If a company breaks up the leave allotment into these 120 and 200-day incriminates, they must allow carryover of any unused leave. Employers can also provide the entire 40 hours at the start of employment, or calendar year, by which they do not need to allow for carryover.

The yearly use cap is now 40 hours or five days instead of 24 hours or three days, and the total accrual cap is now 80 hours, instead of 48 hours.

It is important for employers to evaluate their current PSL policies and make necessary changes to ensure they stay in compliance come January 1st.

The new paid sick leave requirement is one of many employment law changes happening in 2024. Rancho Mesa’s upcoming 2024 Employment Law Update webinar on Wednesday, November 8th will cover these topics in further detail.