Author, Kevin Howard, Account Executive, Rancho Mesa Insurance Services, Inc.

On January 25, 2022, California Governor Gavin Newsom announced he had made a deal with legislative leaders on a framework that would provide up to two weeks of supplemental paid sick leave to those who are unable to work due to COVID-19, quarantining or experiencing side effects from the vaccine. As of February 7, 2022, the California legislature passed the bill and we are waiting for the governor to sign it into law.

Previously, the federal government’s Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which expired September 30, 2021, had provided supplemental sick pay for workers.

California’s proposed employee COVID-19 paid sick leave law would retroactively apply to employers of more than 25 employees from January 1, 2022 through September 30, 2022.

The law would replace wages for:

People who are unable to work or telecommute because they either have COVID-19 or have symptoms and are seeking a diagnosis,
Individuals caring for a child or family member who is required to quarantine or self-isolate, and,
People experiencing vaccine-related side effects.

With the recent wave from the Omicron variant, employees are wondering if and when they will be paid. The proposed law would allow employers to be reimbursed for wages paid to employees who need to stay home due to COVID-19 and prevent the further spread of the virus to co-workers.

The governor announced employers would likely be reimbursed for wages through business tax credits and funding through a small business COVID-19 relief grant program.

Providing a state-sponsored mechanism for employee COVID-19 supplemental sick pay should be welcomed by California employers and employees who may otherwise be tempted to file COVID-19 workers’ compensation claims as a way to replace some wages. Keeping non-work-related COVID-19 cases out of the workers’ compensation system benefits everyone involved by keeping costs, and ultimately premiums, down.

Visit Rancho Mesa’s COVID-19 page for the latest Cal/OSHA COVID-19 Prevention Program Template, articles, podcasts and other resources.

For questions about your workers’ compensation insurance, contact me at khoward@ranchomesa.com or (619) 438-6874.