California’s Paid Sick Leave Law Turns 10

It’s hard to believe that ten years have passed since California became the second state in the U.S. with a statewide paid sick leave (PSL) law. (Connecticut was the first in 2011.) Since July 2015, virtually all employers in California have navigated California’s Healthy Workplaces, Healthy Families statute, a complex law which was significantly expanded in 2024 to increase the amount of PSL employees receive.

Almost all employees in California are entitled to PSL. Are you confident that your PSL program and practices meet current standards? Below we answer some common questions and provide tips for avoiding common pitfalls.

How much PSL do employers have to provide?

Employers have to allow employees to use at least 40 hours or five days (whichever is greater) of PSL per year. However, how you provide PSL depends on what kind of PSL plan you adopt.

Employers must choose from one of several specified methods to provide employees required PSL. The most commonly used methods are:

• Accrual methods: Employees earn PSL over time, and unused amounts carry over each year.
  • Statutory Accrual: Accrual of PSL per hour worked beginning the first day of work at a rate of 1 hour per 30 hours worked.
  • Other Accrual Method: Must provide for accrual of PSL regularly and provide at least three days or 24 hours by day 120 of employment and 40 hours or five days by day 200 of each calendar year or 12-month period.
• “Lump Sum” method: Employees receive a lump sum of 5 days or 40 hours of PSL at the beginning of each year of employment, calendar year, or 12-month period, with no carryover of unused amounts.
• PTO Policy: Employers may satisfy their PSL obligation by having a paid time off (“PTO”) policy that combines vacation and sick leave and satisfies requirements for both laws.

With the accrual method, can employees keep a PSL balance of more than 40 hours? 

Yes. Under accrual policies, employees accrue PSL over time, and unused PSL must be carried over to the following year. However, employers may limit employee PSL balances by setting an accrual “cap” of 80 hours or 10 days (or more). Having an “accrual cap” means employees will not receive additional PSL while their balance is at the cap. Employers must communicate the cap in writing before work begins: accrual caps are not automatic.

Employers may also limit how much PSL employees use each year to 40 hours or 5 days (even if the PSL balance is higher than 40 hours). Like the accrual cap, this restriction must be communicated in writing in advance of work.

Do I have to provide PSL to employees in the introductory period?

Yes. Employees are entitled to receive PSL at the beginning of their employment. However, employers may restrict employees from using their PSL until the 90^th day of employment. This type of restriction must also be communicated to employees in writing before work begins.

What are the reasons an employee may use their PSL?

Employees may use their PSL for diagnosis, care, or treatment of an existing health condition of, or preventive care for themselves or their family member. Employees may also use PSL for protected absences when they or their family member is a crime victim or when taking protected bereavement leave. Agricultural workers who work outside may also use PSL to avoid smoke, heat, or flooding conditions created by a local or state emergency.

May I require a healthcare provider’s note when an employee uses PSL?

Generally, no. An employer cannot deny paid sick leave solely for lack of a medical certification.

Do I have to pay unused PSL balances at termination of employment?

PSL provided as part of a standalone paid sick leave policy does not have to be paid at termination of employment. On the other hand, sick leave that is combined into a PTO policy, where the employee may take paid time off for either sick leave or vacation purposes, is a vested benefit that must be paid on termination of employment and cannot be forfeited.

My employee doesn’t have enough vacation time to cover a planned trip.  Should I allow them to use their PSL for their vacation absence?

This is not a recommended practice.  Paid time off offered without condition (such as vacation that may be taken for any purpose of the employee’s choosing) is considered a vested benefit in California.  Allowing employees to use PSL for non-sick leave purposes, such as vacation—or, put another way, removing the condition that PSL be used for a PSL purpose—creates a risk that the Labor Commissioner or a court might consider it a vested benefit, like vacation. In this case, the time would be protected from forfeiture and must be paid on termination.

These are some common California PSL questions and issues, but please remember that California’s law is complex, and in some cases, local ordinances can impose additional requirements.

For more details on California’s PSL law, CEA members can download CEA’s Paid Sick Leave Fact Sheet, and if you aren’t a member, you can request a free copy of the fact sheet here. The Labor Commissioner also has extensive FAQs about the State PSL law.

CEA’s HR Advisors are here to answer questions. Contact us—by phone, email, or LiveChat.