I know this magazine is international and that this topic won’t apply to many readers, but I think it’s important to share for those who have employees working in California.
Employers in California will soon have a new policy to follow in regard to offering sick pay for employees. The Healthy Workplaces, Healthy Families Act was passed last year and takes effect July 1, 2015.
Although many businesses currently offer sick pay, it may not meet the new guidelines and will require updates to be compliant. All businesses not currently offering sick pay will be required to do so.
There are two methods that can be used to track sick pay: granted and accrual. Each has different rules regarding how it is accrued, if there can be a “use it or lose it” policy, and if unused hours roll over into a subsequent year.
The policy also describes the family members covered under this legislation (it isn’t only if the employee is ill or has a medical appointment) allowing compensation for taking time off to care for specific loved ones.
There are additional regulations discussing the posting/employee notification requirements, how to determine the rate for sick pay, who determines how many hours to cover the time missed, and more.
Many employers told me they didn’t think it applied to them as they only have one part-time employee, but please note that you must offer sick pay compensation unless your employee works less than 30 days per year.
Failing to follow ALL the guidelines can result in penalties up to $4000, and anyone can file an anonymous claim against the business.
If you need more information on this topic, I created a recording and a resource guide explaining the methods, dos and don’ts, additional guidelines, if you can have a “use it or lose it” policy, and penalties for failing to follow all the rules. Information can be found here.
Please make sure you have a sick pay plan in place that meets the requirements to avoid potential fines that can be quite costly. You’ll also want to make sure your handbook is updated to reflect the new policy. I know it’s one more cost you must take on as a business owner, but failing to follow the rules will be more costly long term.