On March 19, 2021, California Governor Gavin Newsom signed Senate Bill (SB) 95 which mandates employers to provide their employees with supplemental paid sick leave (SPSL) for various COVID-related reasons.
This is, in addition to any existing paid time off benefits. SB 95 aims to extend and expand the SPSL ordinances that were introduced at the start of the pandemic. Here is what we know.
Organizations with more than 25 employees are subject to offer SPSL for their employees under this new legislation. Previous SPSL requirements applied to organizations with 500 or more employees.
Employees that are unable to work or telework due to a qualifying reason are covered under this new legislation. This could now apply to employees that are working remotely if they are unable to complete their work, even from home, for COVID-related reasons.
An employee experiencing one of the following would be considered to have a qualifying reason:
For non-exempt employees, the paid sick leave is to be paid at the highest of the following rates:
For exempt employees, the rate of pay will be calculated in the same way as the employer calculates wages for other forms of paid leave. The amount is capped at $511 per day and $5,110 per employee.
Leave provided under the FFCRA or local ordinances for reasons that overlap with this new CA legislation, may run concurrently. Additionally, employers may not require their employees to use other paid or unpaid leave before using this new leave.
Employers are also required to provide notice of the new leave available to their employees either by:
The Labor Commissioner is expected to prepare a notice template for organizations to use. SB 95 is set to become effective retroactively as of January 1, 2021 and is set to expire on September 30, 2021.
Is there anything Payroll Systems can help you with as you accommodate rapid legislation changes? Reach out and talk to us about the easy-to-scale solutions you need for managing your workforce.
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This article provides general information and shouldn’t be construed as legal or HR advice. Since employment laws may change over time and can vary by location and industry, please consult a lawyer or HR expert for advice specific to your business. You can also contact Payroll Systems to inquire about our HR support services.