Video Summary:

In this transcript from a video by Gale & Vallance, Andy Gale, a small business attorney based in Orange County, explains important updates to the paid sick leave law California business owners need to know. Starting July 1, 2015, California law requires employers to provide eligible employees—whether full-time or part-time—at least 24 hours of paid sick leave annually if they work more than 30 days in a year. Andy outlines the two methods of accrual, the importance of updating your sick leave policy and employee manual, and the need to coordinate with your payroll company to ensure compliance.

Please note: this video and transcript do not constitute legal advice. For guidance on your specific situation, we recommend contacting a qualified attorney.

00:00:04 – Introduction to California Paid Sick Leave Law

California paid sick leave law—does it apply to me? Hi, my name is Andy Gale. I’m a small business attorney. I wanted to give you a brief news alert that there’s been a significant change in California law as it applies to small business owners.

00:00:17 – Who the Law Applies To

If you have employees, starting July 1st, 2015—if you have employees, and it doesn’t matter whether or not they’re full-time employees or part-time employees—if those employees work for you more than 30 days in the course of a year, you must give them at least 24 hours of paid sick leave.

00:00:38 – Methods of Sick Leave Accrual

Now, the sick leave accrues in two different methods. There’s what they call the accrual method, and there’s a lump sum method. And there’s a mechanism and a formula for how those exactly accrue, so you need to make sure that you understand both of those different kinds of methods. I’ve got an infographic on my website that you can look at that walks you through all of the details of the two different methods. But you need to know that there are two methods that you must put into effect starting July 1st.

00:01:12 – Updating Policies and Employee Manual

What you want to do also is you want to make certain that you update your sick leave policy. You want to make sure that you update your employee manual.

00:01:22 – Payroll Company Coordination

So if you’ve done those three things, then probably the last thing I would recommend that you do is check in with your payroll company. Because when you initially set up your payroll, there would have been a mechanism where they asked you about sick leave: what’s your policy? And you want to make certain that you communicate to your payroll company that you want to have these changes put into place for your company. It’s not a guarantee that the payroll company will just do it automatically for you.

00:01:46 – Closing Note

So if you have any questions, please give us a call. We would be happy to walk you through the process.

Conclusion: Understanding Paid Sick Leave Law California

California’s paid sick leave law applies broadly to both full-time and part-time employees, requiring employers to provide at least 24 hours of paid sick leave if an employee works more than 30 days in a year. Employers should understand the accrual and lump sum methods, update their company policies and manuals, and ensure their payroll systems are compliant. For specific legal guidance tailored to your business, it’s important to consult directly with a qualified attorney.