Employers in the City of Los Angeles had more than a year to prepare for the City’s minimum wage hike that went into effect at the beginning of this month, but relatively little time to prepare for the mandatory paid sick leave benefits that also began to accrue to their employees since the beginning of this month. In June, the City amended its Minimum Wage Ordinance to require employers with 26 or more employees who work two or more hours during a particular week in the City of Los Angeles to begin providing paid sick leave benefits to employees effective July 1, 2016. Employers with 25 or fewer employees have until July 1, 2017 to begin providing paid sick benefits.
Use of Paid Sick Leave
At 48 hours/six days per calendar year, the City’s paid sick leave benefits are double the amount guaranteed under the statewide sick leave law. Under the City’s Ordinance, sick leave may be used for the employee’s own heath care or for the heath care of a family member or for someone having a close family-like affiliation. An employer can require documentation to support the use of paid sick leave time. An employee can use paid sick leave beginning on the 90th day of employment or July 1, 2016, whichever is later.
Accrual of Paid Sick Leave Time
An employer can provide the entire 48 hours in a lump sum at the beginning of the year or allow employees to accrue benefits at the rate of 1 hour for every 30 hours worked. Unused leave may be carried over to the next year and although no accrual cap is required, an employer may cap accrual at 72 hours or higher. In some instances, employers can to satisfy the paid sick leave requirements with other equivalent compensated leave policies.
Enforcement
All employers should review their paid sick leave policies and ensure that payroll records are complete. In addition, employers should be aware of the elaborate set of Rules and Regulations and Enforcement provisions the City has adopted for implementing the Ordinance. Employers face steep fines for violations of the law. For example, an employer that fails to post the mandatory workplace poster in all 13 required languages may be subject to a fine upwards of $500. The Minimum Wage poster can be ordered here. The City is expected to release translations of the Sick Leave posting soon. Ensure you are posting compliant, purchase your poster from us!
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