On September 10, 2014, California Governor Jerry Brown signed the Healthy Workplaces, Healthy Families Act of 2014, which requires employers to provide many California employees with up to three paid sick days per year.

Action items: Employers with California employees should ensure that they have, or have plans to develop, policies that comply with the state's new sick leave law.

Under the Act, employees must accrue one hour of paid sick leave for every thirty hours worked, up to a total of 24 hours per year. New employees may begin using accrued sick days after 90 days of employment. The Act further makes it unlawful to deny sick days, or discriminate or retaliate against employees for requesting or using sick days. Employers need not, however, compensate employees for unused sick days at the conclusion of employment. The Act also contains various administrative requirements, including: (i) a three-year record retention requirement for documents reflecting hours worked and paid sick days accrued and used by employees; (ii) written notice to all employees regarding the number of sick days accrued and used each month; and (iii) the posting of the requirements of the Act in a conspicuous place.

Although the Act does not provide for a private right of action, it encourages employees to report violations of the Act to the Labor Commissioner, who in turn is authorized to levy fines, and collect amounts owed to employees. It also authorizes the Labor Commissioner to file civil suits on employees' behalf. Employers may face penalties of up to $4,000 per violation.

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