HR Alert

Los Angeles Revises Paid Sick Leave Rules and FAQs

Rules Currently in Effect

The City of Los Angeles has issued revised paid sick leave rules and FAQs.

Background
As of July 1, 2016, employers with 26 or more employees are generally required to provide paid sick leave according to the Los Angeles Minimum Wage Ordinance. Employers with 25 or fewer employees begin providing sick leave benefits on July 1, 2017. Employees are entitled to take up to 48 hours of sick leave in each year of employment, calendar year, or 12-month period.

Revised Rules and FAQs
Highlights of the revised rules and FAQs include the following:

Methods of providing sick time. Employers may select one of two methods for providing paid sick time benefits: front-loading the entire 48 hours for the year (front-loading method); or accruing 1 hour of sick time for every 30 hours worked within the geographic boundaries of Los Angeles (accrual method).

Transition relief for small employers. For an employer with 25 or fewer employees using the front-loading method on July 1, 2017, and for only the calendar year 2017, the employer may provide 24 hours of paid sick leave for the period covering July 1, 2017 to December 31, 2017. On January 1, 2018, the employer is required to provide the full 48 hours.

Carry-over and capping of unused paid sick time. Unused paid sick time accrued by an employee, whether by the front-loading or by the accrual method, carries over to the following year of employment and may be capped at a minimum of 72 hours. An employer may set a higher cap or no cap at all.

Compensation for sick time. An employer is generally not required to provide compensation to an employee for accrued or unused sick time upon termination, resignation, retirement, or other separation from employment.

Existing paid time off policies. If an employer is already providing paid time off or compensated time off that is equal to 48 hours or more, no additional time is required. Any paid time off, including but not limited to, vacation, sick, personal, or paid time off known as PTO, floating holiday, holiday, or personal days may be considered. The notice requirement for use of the time off should not be unreasonable.

Additional details and requirements are contained in the text of the rules and FAQs. The rules are currently in effect.


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