Preparing for New Paid Sick Leave Law – Notice and Record Requirements

NEW NOTICE REQUIREMENT

Notice to Employees

Written notice of paid sick leave information must be provided to all current and new employees. As with the new posting regulation, this rule went into effect on January 1, 2015.

All Employees, whether they have been hired before or after January 1, 2015, must be notified of the change in California’s paid sick leave law. This can be accomplished in several ways:

• Provide a copy of the updated “Wage and Employment Notice to Employees (Labor Code section 2810.5),” also known as the “wage theft notice.” This has been updated by the Labor Commissioner to include an employee’s right to accrue and use paid sick leave, as well as employee protections. Find it on the CA DIR website here.
• Provide a separate, written document to each employee, containing all required information about paid sick leave. This document must summarize the employer’s current policy and how they intend to meet the new requirements for that individual. The document must also state that:
  • The employee may accrue and use sick leave.
  • The employee has a right to request and use paid sick leave.
  • The employee cannot be terminated or retaliated against for using/requesting paid sick leave.
  • The employee has the right to file a complaint against employers who retaliate against them.
• Reflect all changes on an itemized wage statement, issued in a timely manner.

Using the above-reference methods, businesses must notify employees within the following timeline:

• New Hires: employees hired after January 1, 2015 must be provided notice at the time of hire. Employers should provide the Labor Code section 2810.5.
• Existing Employees: Employees hired before January 1, 2015 should be individually notified, using any of the above methods, between January 1, 2015 and July 8, 2015 (operative date of July 1, 2015 + seven (7) days permitted to notify employees of change= a July 8, 2015 “final” deadline). If an employer decides to modify their existing paid sick leave policy prior to July 1, 2015, notice must be provided within 7 days of that change.

Payday Notice

Once the operative date of July 1, 2015 arrives, employees must be provided with information regarding paid sick leave on each pay period. A written notice advising the employee of the amount of paid sick leave/paid time off available to the employee must be provided with each pay period. This can be accomplished easily by:

• Including available paid sick leave/PTO on an itemized wage statement, such as employee pay stubs.
• Providing a separate written document alongside wages. Consider consulting an attorney to ensure this document meets legal requirements.

RECORDKEEPING

Lastly, the new law requires that employers keep records for at least three (3) years documenting the number of hours an employee has worked, their accrued paid sick days, and their used paid sick days. An employee is entitled to the maximum number of hours accruable, unless employers are able to provide clear, convincing evidence that hours have been used or not yet accrued.

This information, along with payroll records, must be available for inspection by the Labor Commissioner and the employee upon reasonable request.