California Paid Sick Leave Accrual Paid Sick Leave Accruals California 2015 California 2015 Accrual Rules Covered Employees. Any employee who works in California for 30 or more days within a year from commencement of employment including part-time, temporary, and seasonal employees. Accrual Rate. Covered employees accrue one hour of paid sick leave for every 30 hours worked. Exempt employees whose normal workweek is fewer than 40 hours will accrue paid sick leave based on that employee s normal workweek. Carry Over and Accrual Cap. Employees must be permitted to carry over all of their accrued, unused paid sick leave to the following year, but employers may cap the accrual of paid sick leave at 48 hours or six days. Annual Grant. Instead of using the accrual method, employers can choose to give covered employees at least three days or 24 hours of paid sick leave at the beginning of each year. Under this option, no accrual or carry over is required. Sick Leave Use. Employers can limit use of paid sick leave to 24 hours or three days during each year of employment. Employees become eligible to use their accrued paid sick leave on their 90th day of employment. Rate of Pay for Paid Sick Leave. Hourly employees are paid according to their hourly rates of pay. Where employees earn fluctuating wages (e.g., commissions, multiple hourly rates, piece rates), the rate of pay for paid sick leave is determined by dividing the employee s total wages (not including overtime pay) by the total hours worked in the full pay periods during the prior 90 days. No Pay-Out Required. The employer must restore to the employee any accrued, unused paid sick leave if the employee is rehired within one year of the separation. The rehired employee is entitled to use the previously accrued but unused paid sick leave and to accrue additional paid sick leave upon rehire. Pay Stub Requirement. Every pay day, employers must provide each covered employee with written notice that sets forth the amount of paid sick leave available, or the PTO that an employer provides in lieu of sick leave. This notice must appear either on the employee s itemized wage statement or in a separate document provided to the employee on the designated pay date. Violation of this provision subjects the employer to penalties under the Act, but not under California Labor Code section 226. Recordkeeping Requirement. The Act requires employers to keep records, for three years, documenting the hours worked and the sick leave accrued, and to make the records available for inspection by the Labor Commissioner and the employee. City Ordinances. The Act does not preempt any California paid sick leave ordinances, such as the existing San Francisco ordinance and the newly-enacted San Diego ordinance, which becomes effective on April 1, 2015. Employers must comply with any applicable ordinance and the California Paid Sick Leave Law. For each provision or benefit, the employer must provide whichever is more generous to the employee. For purposes of calculating paid sick leave accrual (one hour of sick leave for every 30 hours worked), does one count the overtime hours of non-exempt employees? The Act does not expressly exclude overtime hours and, instead, simply provides that employees shall accrue one hour of paid sick leave for every 30 hours worked. Lab. Code 246(b)(1). Accordingly, absent guidance that states otherwise, we assume that employers should count the overtime hours of non-exempt employees. 1270 Eagan Industrial Road, Suite 150 Eagan, MN 55121 877.428.4668 www.avionte.com
Adding a California Paid Sick Leave Plan to Avionté Covered California employees must accrue one hour of paid sick leave for every 30 hours worked or start the period with an initial sick leave balance of at least 24 hours. Your plan may accrue one hour of paid sick leave each time 30 hours of work are completed or your plan may accrue 0.0334 hours of paid sick leave each time one hour of work is completed. Both of these options meet the requirements of the California Healthy Workplace Healthy Family Act of 2014. BEFORE YOU BEGIN: Create a Support ticket to have the Stored Procedure added to your database. Use the subject line: CA Sick Leave. Be sure to note which Stored Procedure you have chosen to use. Two stored procedures are available: Stored Procedure Function pay_processpayrollcheckaccrual_ca_sickleave pay_processpayrollcheckaccrual_ca_sickleave_rate Accrues one hour of paid sick leave every 30 hours worked. Note this process requires manual corrections to accruals when/if check corrections are made. Accrues 0.0334 of an hour of paid sick leave every one hour worked. If you are allowing your California employees to accrue sick leave, follow the process on page 3. If you are granting your California employees sick leave which they will deplete, follow the process on page 5. 2
Set Up Your California Accrual Plan Note: when setting up a CA Accrual Plan, daily time must be entered for those employees. Within the Avionté Core Application access the Admin Tools main window. Select the Employer category from the left panel and double-click the employer name in the right panel. This loads a list of available suppliers. Select a supplier; that supplier's config properties are loaded. Multiple tabs are located across the top of the Supplier window. Select the Accrual Plan tab. Existing accrual plans for the supplier are listed. Details of the selected plan are viewed in the lower screen. The new plan is created by clicking the Add New button. The fields are cleared and a new plan may be created. You are required to complete both the Accrual tab and the Depletion tab when setting up the California Accrual Plan. 3
Name the plan CA Sick Leave. Add a description for your California Accrual Plan. Select the Rate Type of Per Hour. In the Rate field type 0.0334. Check Unlimited Carryover if you have no limits on carryover. If setting a Carryover Limit it must be at least 48 hours. A yearly limit is at the employer s discretion, complete this field accordingly. Carryover is based off the Yearly Date Type designation. Choose Calendar Date. Note: The Calendar Date selection defaults to 1/1, and the Anniversary Date defaults to the employee's date of hire. There will be no Initial Balance with an accrual plan. If setting a Max Accrual Balance it must be at least 48 hours. Enter the customized Processing Method by which the accrual will be processed: pay_processpayrollcheckaccrual_ca_sickleave pay_processpayrollcheckaccrual_ca_sickleave_rate Click the Active check box and Save the plan. Select the Accrual Plan Accrue tab. From the Accrual Plan column, select your CA Sick Leave Plan. Select the transaction types that should be used for accrual of sick leave. Each type requires a new line. Click Save. Select the Accrual Plan Deplete tab. Set all of the Transaction Types. One of the transaction types selected here must be on the paycheck in order to show the sick leave balance on your paystubs. Save the plan. The plan is now listed in the upper screen with your previous accrual plans and is ready to use. 4
Set Up Your California Annual Grant Depletion Plan Note: when setting up a CA Depletion Plan, daily time must be entered for those employees. Within the Avionté Core Application access the Admin Tools main window. Select the Employer category from the left panel and double-click the employer name in the right panel. This loads a list of available suppliers. Select a supplier; that supplier's config properties are loaded. Multiple tabs are located across the top of the Supplier window. Select the Accrual Plan tab. Existing accrual plans for the supplier are listed. Details of the selected plan are viewed in the lower screen. The new plan is created by clicking the Add New button in the bottom portion of the screen. The fields are cleared and a new plan may be created. Enter the name California Sick Leave and a description. Select the Rate Type of Per Hour. The Rate should be set to 0.00. When using the depletion plan no carryover or accrual is required. If you choose to allow either you may set the limits in the fields provided. Carryover is based off the Yearly Date Type designation. Choose either Calendar Date or Anniversary Date, although no carry over is required. Note: The Calendar Date selection defaults to 1/1, and the Anniversary Date defaults to the employee's date of hire. Set the Initial Balance of at least 24 hours. 5
You may set a max accrual balance, however no accrual is required. Enter the customized Processing Method by which the plan will be processed: pay_processpayrollcheckaccrual_ca_sickleave_rate Click the Active check box and Save the plan. Select the Accrual Plan Deplete tab. From the Accrual Plan column, select your CA Sick Leave plan. Select the transaction types that should be used for depletion of sick leave. Save the plan. Select the Accrual Plan Accrue tab. Set all of the Transaction Types. One of the transaction types selected here must be on the paycheck in order to show the sick leave balance on your paystubs. Save the plan. The plan is now listed in the upper screen with your previous accrual plans and is ready to use. 6
Insert CA Sick Leave Plan Option 1: Insert the CA Sick Leave plan manually for every employee that works in California. Employee Setup: With this option, you will need to run a report to find those employees who have reached 30 days of employment in California and add the accrual plan to the employee record at that time. Option 2: Avionté will insert the CA Sick Leave plan for all of your employees and then setup an employee after save Stored Procedure that would insert that accrual plan for all new employees. This way you will never have to worry about inserting the accrual plan. This is one hour of billable time. Option 3: Avionté will insert the CA Sick Leave plan for all of your employees that are currently working in CA. We then set up an after assignment save that would insert the accrual plan for the employee if they have an assignment in CA. This is one hour of billable time. With any of the listed options the CA Sick Leave plan will not start calculating until after 30 days of working in CA, therefore if you set it up the plan on the employee record and the employee never works in CA they will never accrue this sick leave. 7