California's New Supplemental Paid Sick Leave: What Employers Need to Know
On September 19th, 2020, Governor Gavin Newsom signed into law Assembly Bill 1867 which expands California workers' entitlement to COVID-19 Supplemental Paid Sick Leave (CSPSL) to 80 hours. The bill is an attempt to provide a greater number of workers access to paid sick leave who were previously ineligible under the federal Families First Coronavirus Response Act (FFCRA).
Which employers must provide the New COVID-19 Supplement Paid Sick Leave?
The employers who are required to provide workers CSPL under the new bill are "hiring entities" with 500 or more workers nationwide, employers already providing FFCRA leave don’t need to provide CSPL in addition. The expansion is really targeting employers who weren’t subject to FFCRA.
Who is eligible to receive the new CSPSL?
A worker can only receive CSPSL if their own health is compromised as a result of COVID-19, therefore, it is not available to those who need to take time off to care for family members affected by COVID-19.
The new bill states that CSPSL is only available if a worker “leaves the person’s home or another place of residence to perform work for the person’s hiring entity."
This means that those who work 100% remotely are not eligible for the paid leave. If a worker must leave their home to perform work for their company from September 19th, 2020 onwards, it is likely that worker will be eligible for CSPSL.
Reasons an employee can receive CSPL include:
Being subject to a Federal, State, or local quarantine or isolation order related to COVID-19. To clarify, this means a quarantine or isolation order that is specific to the worker’s circumstances, not a general stay-at-home order.
If they are advised by a health care provider to self-isolate due to COVID-19 concerns
If they cannot work for the company due to COVID-19 health concerns related to potential transmission
The Division of Labor Standards Enforcement (DLSE) has also made clear that independent contractors are not eligible to receive CSPSL.
How much leave is a worker entitled to under the new bill?
If a worker is full-time or was scheduled to work, on average, at least 40 hours per week in the 2 weeks preceding the requested leave, they are entitled to 80 hours of CSPSL.
Part-time workers with a regular weekly schedule are also entitled to CSPSL which equals the number of hours they are normally scheduled to work over 2 weeks.
What rate of pay must employers pay CSPSL?
Employers must pay CSPSL at the regular rate of pay, or the state or local minimum wage, whichever rate is highest. However, employers are not required to exceed payments of $511 a day, or $5,110 total.
What date does the new law on CSPSL go into effect?
Employers must provide CSPSL to eligible workers from September 19th, 2020. The new law is set to expire on December 31st, 2020 as it complements the FFCRA. However, this may change if the federal government decides to extend the FFCRA.
Do I have to notify my workers of the new CSPSL entitlements?
The new bill requires employers to either post the Labor Commissioner Office's model notice in the workplace or provide the notice electronically by email or other communications if workers are not present in the office.
Employers must also provide written notice to their workers regarding the amount of CSPSL available in the worker’s wage statement or separate writing providing on designated pay dates. If a company utilizes a payroll provider, they should be notified as soon as possible to ensure the company’s wage statements are compliant with the new CSPSL. PGC manages issuing notices to workers you employ via Precision.
Disclaimer: All information written here is for general informational purposes only and is not intended to be a substitute for professional and/or legal services.