California COVID-19 Paid Sick Leave

On March 19, 2021, California Governor Gavin Newsom signed S.B. 95, which requires employers to provide two supplemental weeks of paid sick leave (SPSL) for various COVID-related absences.

 

BACKGROUND

On March 19, 2021, California Governor Gavin Newsom signed S.B. 95, which requires employers to provide two weeks of supplemental paid sick leave (SPSL) for various COVID-related absences.

The new statutes will apply retroactively to January 1, 2021, and are effective through September 30, 2021. They do not go into effect until March 29, 2021 – ten days after the governor signed S.B. 95.


Overview of California COVID-19 Paid Sick Leave: 

  • It covers California workplaces with 26 or more employees.

  • Applies to California employees working an average of 40 hours per week.

  • Paid Sick Leave earnings, days, and maximums mirror those at the Federal level.

  • The policy is retroactive to January 1, 2021, meaning employees can receive compensation for any unpaid Covid-19 sick leave taken at the beginning of the year.

S.B. 114 Update

In accordance with the legislation signed on February 9, 2022, by Governor Gavin Newsom, beginning on February 19, California employers must provide up to two weeks of paid COVID-19 leave. As a result, S.B. 114 has been passed and paid COVID-19 leave has been extended to California workers through September 2022.

Under S.B. 114

  • Paid leave is retroactive to January 1, 2022.

  • California employers must provide up to two weeks of paid COVID-19 leave through Sept. 30, 2022.

  • Expired paid-leave requirements for companies with more than 25 employees have been restored.

  • Employers can require documentation from workers before paying the leave, which must be made immediately available on the employees’ request.

  • Workers can receive 40 hours of pay for quarantining or isolating, plus whatever their employer offers, under the law, which runs through Sept. 30. 

  • Part-time workers’ leave would be prorated based on their hours.

  • Another 40 hours of paid leave is available to workers if they or a family member test positive for the virus. 

  • Workers can be paid up to 24 hours to get and recover from COVID-19 vaccine side effects.

 

ELIGIBILITY AND REQUIREMENTS

Eligibility - Criteria

Eligible employees can use the leave to:

  • Recover from COVID-19.

  • Schedule a vaccine appointment.

  • Recuperate from vaccine side effects.

  • Seek a medical diagnosis if they suspect they have the virus.

  • Care for a family member in quarantine.

  • Care for a child whose school or daycare has closed because of COVID-19.

 Pay Stub Requirements

  • California requires SPSL information to be available on paystubs or other written notices that employees receive on payday.

  • Paystub requirement is not enforceable until the next full pay period following the date that the law takes effect (March 29, 2021).

  • SPSL and pre-COVID statutory paid sick leave are required to be displayed separately by law.

 

NEXT STEPS

To ensure that California supplemental paid sick leave is displayed on the pay stub, create a new PTO plan named SPSL. Do not map the SPSL PTO plan to a Payroll Hours Benefit.

For more information on how to create PTO plans, refer to Configuring and Assigning Time Off for instructions.


 

FREQUENTLY ASKED QUESTIONS

Is Namely creating a PTO plan on our behalf for California paid sick leave?

No. Since the needs may vary, we will not be creating a PTO plan on your behalf. Refer to Configuring and Assigning Time Off for instructions on creating a PTO plan for your organization.

 

If employees are logging their time off for California paid sick leave, do we need to enter any earnings in Namely Payroll?

Yes. COVID-related earnings cannot be paid out at an hourly rate, so any paid sick leave will need to be recorded in Namely Payroll with a flat dollar amount for any employee receiving paid sick leave.

 

Does the sick leave mandate for California also apply to family leave?

No. Currently, California employers are only required to provide paid sick leave. If you would like a custom pay code established in your payroll site to be used for recording these earnings, please submit a case to our Service Team for a new Additional Pay Code.

 

Where can I learn more information about this bill?

Refer to the California website here for more information. Please also find a list of FAQs provided by the state here.