California’s paid sick leave law in 2024: guide for compliance

The new California paid sick leave (PSL) law took full effect at the start of 2024 and introduced significant changes, such as increasing the minimum leave from 24 to 40 hours a year. 

This article will guide Californian employers through staying compliant with updated legal requirements, unpacking eligibility criteria, workforce obligations, and more.

California's 2024 paid sick leave law

California’s new paid sick leave law, effective the beginning of 2024, introduces changes to previous regulations. Under the new law, employees are entitled to at least 40 hours (five full work days) of paid sick leave per 12-month period—an increase from the previous 24 hours. 

Employees can accrue PSL gradually—the standard accrual method is 1 hour for every 30 hours worked—or get access to the entire PSL amount at the beginning of the predetermined period. Either way, employees must have access to at least 24 hours of paid leave by the 120th day of their employment. 

Employers who deny minimum paid sick time to California employees may face lawsuits.

California cities with higher paid sick leave

The following cities offer greater paid sick leave (PSL) than state law requires: 

• Los Angeles: 48 hours (6 days) PSL yearly
• Berkeley: Employers with less than 25 employees must provide 48 hours PSL annually, while workplaces with 25 or more employees must provide 72 hours.
• Emeryville: Companies with  ≤ 55 employees must provide 48 hours PSL yearly or 72 hours if they have more than 55 employees.
• Oakland: Employers with less than 10 employees must provide 40 hours annually or 72 hours PSL if they have ≥ 10 employees.
• San Francisco: Employers with less than 10 employees must provide 48 hours PSL annually or 72 hours if they have ≥ 10 employees.
• Santa Monica: Companies with fewer than 25 employees are required to provide 40 hours PSL annually, while those with 25 or more employees must provide 72 hours.

California sick leave law eligibility

Under the new law, most California full-time, part-time, and temporary workers are eligible for paid sick time. Seasonal employees are non-exempt under specific conditions. 

Employees are entitled to PSL benefits if they:

• Have been with an employer for over 30 days within a calendar year.
• Have completed an initial 90-day waiting period during which absences are not allowed. 

Seasonal employees don't have to work for 90 consecutive days to qualify for PSL but are not immediately eligible. If they complete 60 days of employment, leave, and then return within the same calendar year to the same employer, they can continue accruing paid sick days based on what they previously accrued. However, If an employee was paid out for unused sick leave upon departure, in that case, they would start accruing leave from square one, like any new hire. 

Certain professions are not covered by the new PSL law. Among the exempt employees are:

• Government workers: Their leave policies are governed by specific public sector regulations or collective agreements.
• Retired US intelligence workers: They fall under specific regulations due to the nature of their work.
• Employees covered by qualifying collective bargaining agreements (CBAs): CBAs often establish better PSL provisions, which supersede state laws. 
• Railroad employees: The Railway Labor Act governs their PSL policies.

What qualifies as sick leave in California? 

PSL applies to the following circumstances:

1. Parent sickness 

Employees can use PSL to care for a sick parent. This entitlement is covered as family caregiving under California's PSL law, which allows employees to take paid sick days for immediate family members, including parents. 

2. Child sickness 

The law also applies when an employee needs to take care of a sick child, whether the illness is minor, like a cold, or severe, like hospitalization. The entitlements apply to biological or adopted children, stepchildren, or children under guardianship. 

3. Preventive care 

Preventive care includes regular checkups, health screenings, and immunizations. The new California PSL law allows employees to use PSL for their own appointments or for those of immediate family members.

4. Diagnosis and treatment appointments 

California PSL covers doctor visits, lab tests, chronic disease treatments, and surgeries. 

5. Medical attention for domestic violence injuries

Employees who have been victims of domestic violence, sexual assault, or stalking can use PSL for medical treatment of physical injuries resulting from abuse.

6. Psychological counseling

PSL can also be used for mental health care. Employees can use it for therapy sessions or psychological counseling. The coverage also includes leave to assist immediate family members dealing with mental health challenges or recovering from traumatic events.

How to provide paid sick leave to your employees

California employers can choose from the following accrual methods when offering PSL. 

1. Statutory accrual method

The statutory accrual method allows employees to gradually accrue paid sick time based on hours worked. According to the new California PSL regulations, employers must ensure employees accrue at least 40 hours or five days of paid sick leave each year. This means one hour of PSL for every 30 hours worked.

Once employees reach 40 hours, no additional PSL will be accrued until some of the existing balance is used. Unused PSL can be carried over to the next year but is subject to an accrual cap. The accrual cap is set at 80 hours (10 days) per year. 

2. Lump sum

When using the lump sum method, employees have access to the full amount of paid sick leave without requiring them to accrue the hours over time. The full PSL can be made available to employees at the beginning of the calendar year, employment year, or any predetermined period. 

The key characteristics of this method are:

• Availability of the entire PSL: Employers must provide at least 40 hours or five-day PSL at the beginning of the predetermined period.
• No accrual required: Employees can use the entire PSL; there is no need to accrue leave hours based on hours worked. 

This lump sum method simplifies compliance, eliminating the need for tracking accrued rates.

3. Existing PTO policy

While typically used for vacation, paid time off (PTO) may also cover paid sick leave. 

Under the new California PSL regulations, employers offering PTO plans must ensure these plans align with the state-mandated minimum sick leave requirements. That means employees must be entitled to at least five days or 40 hours of paid leave per calendar year. If PTO is used to cover sick leave, the accrual rate must meet or exceed 1 hour of PSL per 30 hours worked, with a cap of 80 hours or 10 days annually. 

This standard applies to limited and unlimited PTO policies. As long as the plan complies with or exceeds the mandated minimum, companies fulfill their legal obligations. 

How much paid sick leave can employees take in California? 

The number of paid sick days an employee can use within a given calendar year depends on their type of employment and hours worked. 

Full-time employees

Full-time employees working 40 hours a week can accrue more than the full annual entitlement of 40 hours (5 days) of paid sick leave per year. However, employers can limit the PSL to the required 40 hours or set an accrual cap at 80 hours (10 days) per year, depending on their policies.

Part-time employees

Part-time employees accrue PSL at the same rate as full-time employees. The amount of PSL they can take on a yearly basis will depend on the number of hours they work each week.

For instance, a part-time employee who works 20 hours per week typically acquires 33 weeks of PSL annually. Unused paid leave can be carried over to the following year. 

Seasonal employees

Seasonal employees start occurring paid sick time after working 60 days for an employer. In case they leave the employer but return within the same calendar year, they continue to acquire PSL based on the hours worked, adding to the previously accrued leave. 

Temporary workers

Temporary workers, as full-time or part-time employees, are required to work at least 30 days for an employer and complete a 90-day employment period before taking any paid sick leave. Then, they qualify for the standard minimum of 40 hours or five days of PSL. Like other employees, unused PSL can be carried over to the next year, subject to the accrual cap.

Calculations and considerations

It's important to note that employees can use PSL once they've accrued enough hours and completed a 90-day waiting period. Those on the accrued method can start using their PSL once they have accrued 40 hours. 

Assume an employee works 120 hours a month. That's 4 hours of PSL monthly, and in 10 months, they will accrue 40 hours of PSL they can start using. Unused hours get carried over to 

the following year but are subject to an accrual cap of 80 hours. 

On the other hand, employees under the lump-sum method have the total PSL available for immediate use.

Sick leave notice employer obligations

Keeping employees informed about their PSL rights prevents confusion, non-compliance with applicable labor law and potential disputes. Here’s what employers should do to keep everyone posted. 

1. Display available paid sick leave balances on the employee’s pay stub

Employers are required to include paid sick leave balances on employee pay stubs. This ensures transparency and enables employees to track their PSL. It also helps companies comply with state regulations requiring employers to inform employees of their PTO benefits. Lastly, including paid sick leave balances on the employee’s pay stub helps avoid disputes over whether an employee has received an adequate amount of PSL.

2. Post the Division of Labor Standards Enforcement Paid Sick Leave poster in the workplace

Employers should display a poster provided by the Division of Labor Standards Enforcement (DLSE) in a visible place in the office. The poster outlines the employees’ rights regarding paid sick leave, ensuring employees are informed of their entitlements. It also protects employers from potential penalties for failing to inform employees. 

3. Send the poster via email for remote workers

If a company also has work-from-home employees, it is required to send the related information electronically. The Division of Labor Standards Enforcement poster should be sent to remote employees via email or posted on the company’s online portal. Regardless of their working location, every employee must be familiarized with their PSL rights. 

Easily manage sick leave with Rippling 

Manually tracking employees' time and attendance is time-consuming and error-prone. Rippling automates the process to match your business needs, helping you increase efficiency and ensure compliance. 

Rippling enforces overtime, meal breaks, and other federal, state, and local labor laws based on each employee's work location—helping you avoid legal risk and financial penalties.

Customize Rippling to automate your exact time-tracking needs—from creating job codes and enforcing overtime policies to routing timecard approvals to managers before payroll runs.

California’s paid sick leave law 2024 FAQs

Can employers deny sick days to employees?

No, employers can’t deny sick days to employees who have accrued a required amount of sick days and meet the eligibility requirement. Under the California law, denying access to PSL benefits could result in penalties for employers. 

What is the difference between PTO and sick time? 

When discussing PTO vs. sick time in California, the difference is primarily in how the time is accrued. For instance, PTO policies in California typically combine vacation, sick leave, and personal time in one bank, enabling employees to use their time off as they see fit. Sick time, however, is specifically designated for health-related reasons and is protected under California’s Paid Sick Leave law, which outlines specific accrual rates and usage guidelines. 

Do employees get paid for unused sick days in California?

Is sick time paid? This is a common question regarding the new PSL regulations in California. The answer is twofold. First, paid sick leave means that an employee continues to receive their regular wages for the hours they would have worked while absent due to qualifying reasons.

However, when an employee leaves the company, the employer is not required to pay out the employee's unused paid sick days unless they are part of a larger PTO plan, which may need to be paid upon termination, depending on the company's PTO policy.

How many sick hours do part-time employees get in California?

Part-time employees accrue paid sick days at the rate of 1 hour per 30 hours worked. The amount they'll accrue depends on how many hours they work each week. Still, they are entitled to at least 24 hours or three days of PSL yearly.

This blog is based on information available to Rippling as of November 18, 2024.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.