All Employers with San Diego, CA Employees
September 2, 2016
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The City of San Diego finally certified the Minimum Wage and Sick Leave Ordinance (“Ordinance”) voters passed in June. Though the Ordinance went into effect on July 11, 2016, there are additional pending amendments to the bill that will require a second reading before becoming effective. The amendments are expected to become effective after the second reading, 30 days after the original Ordinance’s effective date.
The amendments cover several key areas employers had raised concerns about.
- Accrual Cap: The amendment sets a cap on paid sick leave (“PSL”) at 40 hours/five days per year (the original Ordinance had no cap). The maximum amount for carryover caps at 80 hours.
- Frontloading: Employers are permitted to frontload the required 40 hours per benefit year. The amendments also clarified that employers with an existing paid time off policy that satisfies all of the requirements of the Ordinance are not required to adopt an additional PSL policy.
- Rate of Pay: the amendments specify that non-exempt employees should be paid at their regular rate of pay for the workweek in which they take PSL. Exempt employees are to be paid at the same rate or manner that they are usually paid for working time.
- When Leave Can be Used: Employees can begin using accrued PSL on the 91st day of employment or July 11, 2016, whichever is later.
- Employer’s Notices:
- The current Ordinance requires employers to display a poster in the workplace. Though the City has finally published a poster that is currently required to be displayed in the workplace, another poster for the amended Ordinance is expected to be published on September 1, 2016.
- Employers must provide written notice to current and new hires containing the employer’s legal name, any fictitious business names, and information about how the employer satisfies the Ordinance. Employers must provide the written notice at the time of hire or by October 1, 2016, whichever is later.
- Records of the PSL must be provided to employees, though the Ordinance does not specific what the records should contain or how frequently they need to be provided.
- Remedies: The amendments provide additional penalties for violations of the PSL regulations.
- Enforcement: The Office of the City Treasurer, or other Office or Department as designated by the Mayor, will be responsible for enforcing the provisions of the Ordinance.
- Be sure to display the current workplace poster conspicuously in facilities where covered employees work.
- Provide current employees a written notice of how the organization satisfies the Ordinance’s requirements no later than October 1, 2016. After October 1, 2016, provide this notice to all newly hired employees at commencement of employment.
- Contact ManagEase at (888) 230-3231 for assistance in revising paid sick leave policies and procedures to take advantage of the amended Ordinance.
This article was revised on August 24, 2016 to provide additional details.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.
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