The “Healthy Workplaces, Healthy Families Act” (AB 1522), signed by Governor Brown in September 2014, came into effect on Wednesday July 1, 2015. The new law required employers in California to provide paid sick leave benefits to all their employees. With the law coming into effect,  employees are given a moment to rejoice, but not the employers.

With the new development, California becomes the third state to allow paid sick leaves for all employees irrespective of their category, i.e. whether they are full-time employees or part-time employees. The same law even applies to non residents and those whose company headquarters are out of California.

But, with every new  law that comes into effect, there comes a lot of confusions and queries, this law doesn’t serve as an exception. It has become a headache for the employers who are given a new set of rules to follow under their employee benefit offerings .

A Brief Description On The Basics Of AB 1522

~ Employees who work 30 days or more within a year from the commencement of their employment are permitted to accumulate paid sick days at a rate of not less than one hour for every 30 hours they have worked. For example, if a full-time employee works for 40 hours per week, then he/she would be allowed to accumulate up to 8.6 days of paid sick time off per year.

Although employees are entitled certain number of paid sick leaves, still employers may chose to limit the annual use of paid sick leaves from 24 hours to3 days per year. Likewise, the employer may chose to cap the annual amount of accumulated paid sick leave to 48 hours or 6 days per year.

~ The paid sick leave pay rate is the employee’s regular hourly wage including commission or piece rate pay, and employers should pay out sick leave benefit payments to employees not late than the payday for the next payroll period after the sick leave was availed.

The law consists of various exclusions, containing specific provisions which apply where an employer already provides paid time off.

How To Successfully Comply With The Rules?

1. Display a poster on paid sick leave where your employees can read it easily. Circulate the same among the staff also.

2. Provide the sick leave information in a written format to each and every new hire.

3. Provide the use of accrual of one hour of sick leave for every 30 hours of work to every eligible employee.

4. Let eligible employees use their accrued paid sick leave on request.

5. Show the available hours of sick leave, an employee has, on a document issued along with the pay check or on pay-stub.

6. Maintain a record displaying how many hours of sick leave have been earned and used for three years.

Along with these, an effective payroll processing system like TeemWurk helps employers remain compliant with all the rules and process payroll without any hassles, as all the employee data is kept in a centralized place and is of utmost precision. A tool like this will help employers streamline their daily processes while avoiding any kind of hefty penalties.