The Labor Commissioner's office has issued yet another interpretation of California's new Paid Sick Leave law applicable to employers who have elected to use the "no accrual and no carry over" system. In response to an employer's inquiry about what "three days or 24 hours" means in the context of an employee whose regular work schedule is a 10 hour shift, the Labor Commissioner has opined that 24 hours or three days is a statutory minimum that must be interpreted in favor of the employee so that an employee who regularly works a 10 hour shift must be provided with 30 hours (or "three days") of paid sick leave, not 24 hours.

Under the Paid Sick Leave law, an employer may elect to proceed under either an accrual and carry over system or under a "front load" system that involves no carry-over of sick leave from year to year. If an employer elects to proceed under a front load system, the employer must provide employees with the "full amount of the leave" at the beginning of the year. When the Paid Sick Leave law was amended this year, the following language was added: "The term 'full amount of leave' means three days or 24 hours." The Labor Commissioner interpreted this new language as a statutory minimum, which means that in the Labor Commissioner's view an employee may never receive less than 24 hours of paid sick leave and, if the employee regularly works a 10 hour day, the employee must receive three days, interpreted as 30 hours. The Labor Commissioner's opinion letter applies this same reasoning to an employer who proceeds under the accrual system and elects to limit an employee's use of accrued paid sick days to 24 hours or three days in a year.

What steps should employers take in light of the Labor Commissioner's opinion?

  • If your company is using the front load method, review your written policy to ensure the language is compatible with this new opinion letter by the Labor Commissioner—this means the full amount of leave provided at the beginning of the year must provide the particular employee either 24 hours (if the employee is part time or regular 8 hour day full time) or 30 hours (if the employee's regular day is 10 hours)
  • If your company is using the accrual and carry over method and you limit the amount of accrued time an employee may use in a year, review your written policy to ensure that the limits you are imposing provide employees who work a regular 10 hour shift the right to use up to 30 hours of accrued sick leave and all other employees the right to use up to 24 hours of accrued sick leave.

Undoubtedly, the Labor Commissioner will issue additional clarifications regarding implementation of the new Paid Sick Leave law. It is important that employers pay attention to these interpretations and ensure that their written policy and the administration of that policy is consistent with the Labor Commissioner's interpretation of the law. Claims for unpaid sick leave are likely to land in Labor Commissioner's office when employees believe they have been shorted so it is important to take the time and energy to ensure that your company's policy and practice is compliant with the Labor Commissioner's interpretation.

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