Updates to California Sick Pay and PTO in 2025

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

Beginning on January 1, 2025, changes to California paid sick leave and paid family leave took effect in California.

Use of Paid Sick Leave Expanded

The use of paid sick leave has been expanded to cover additional reasons for absence including:

• Jury duty

• Appearance in court under a court order as a witness in a judicial proceeding

• Any reason covered under the victim leave law, if the employee or their family member is a victim of any qualifying act of violence (QAOV)

Additionally, agricultural workers whose job description requires them to work outside may use paid sick leave to avoid unsafe smoke, heat, or flooding conditions.

To ensure your business is in compliance with these new requirements, update your paid sick leave policy to include these new uses.

Use of Paid Family Leave Requirements Changed

The requirements for an employee to use paid family leave have also been updated. Employers can no longer require employees to use up to two weeks of accrued, unused vacation time before they are able to receive Paid Family Leave (PFL) from the state.

Employers should update family leave policies to remove any requirement that employees must use accrued vacation time before receiving PFL benefits on or after January 1.

Changes to paid sick leave and Paid Family Leave policies can be made through Rancho Mesa’s RM365 HRAdvantage™ portal by utilizing the Company Policies/Handbooks feature.

For more information on other important changes to California employment law, register for Rancho Mesa’s 2025 Employment Law Update webinar.

California Increases Paid Sick Leave for 2024

Author, Megan Lockhart, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

The state of California will officially change the paid sick leave (PSL) law for businesses in 2024. Effective January 1, 2024, the amount of PSL employees can take will increase from 24 hours to 40 hours per year.

The decision to make these increases was approved by Governor Newsom this month and includes two methods of allotting paid sick leave to employees, the accrual method of gaining leave hours over a period of time, and the lump sum method which allots a sum of PSL hours to employees each year.

Employers who provide leave via an accrual system must allow employees to accrue at least 24 hours of PSL by their 120th day of employment, and the entire 40 hours by their 200th day of employment. The accrual method normally follows a rate of 1 hour PSL per every 30 hours worked, however, employers can choose how time is earned as long as it meets the new standards.

If companies provide PSL in a lump sum, they must grant the sum of 24 hours of PSL to employees by no later than their 120th day of employment and they must allot them the rest of the leave (and additional 16 hours) by the 200th day of employment.

If a company breaks up the leave allotment into these 120 and 200-day incriminates, they must allow carryover of any unused leave. Employers can also provide the entire 40 hours at the start of employment, or calendar year, by which they do not need to allow for carryover.

The yearly use cap is now 40 hours or five days instead of 24 hours or three days, and the total accrual cap is now 80 hours, instead of 48 hours.

It is important for employers to evaluate their current PSL policies and make necessary changes to ensure they stay in compliance come January 1st.

The new paid sick leave requirement is one of many employment law changes happening in 2024. Rancho Mesa’s upcoming 2024 Employment Law Update webinar on Wednesday, November 8th will cover these topics in further detail.

California Prepares to Restore COVID-19 Paid Sick Leave

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.

FFCRA Requiring Mandatory Display of Notice

Author, Lauren Stumpf, Media Communications Coordinator, Rancho Mesa Insurance Services, Inc.

The Families First Coronavirus Response Act (FFCRA) is requiring all employers with fewer than 500 employees, to post the Employee Rights - Paid Sick Leave and Expanded Family and Medical Leave Under the Families First Coronavirus Response Act notice in a conspicuous place on their premises. An employer may satisfy this requirement by emailing or direct mailing this notice to employees and new hires or posting it on the employer’s website (“an employee information internal or external website”).

The notice must be posted from April 1, 2020 through December 31, 2020, regardless of whether the employer’s state requires greater protections.

More information about the FFCRA notice specifications can be found on the U.S. Department of Labor website.

Check the Wage and Hour Division of the U.S. Department of Labor website or sign up for Key News Alerts to ensure that you remain current with all notice requirements.