How to Legally Handle Paid Sick Leave in California
By VICKY BROWN
If you’re a small business owner in California, there’s one compliance topic you can’t afford to ignore – paid sick leave. Every employer in the state is required to offer it, and that includes businesses with just one employee.
It sounds simple. But once you dig into the details – how much to offer, who qualifies, how to track it – the water gets murky. And that’s where businesses get in trouble.
Let’s break it down and clear the fog so you can protect your business and lead with confidence.
What the Law Says
The basic rule is this: if someone works in California for 30 days or more in a year, they’re entitled to paid sick leave. This applies to part-time workers, temps, and seasonal employees. If they’re on your payroll and they hit that 30-day threshold, they qualify.
Employers have two options for how to provide the time: accrual or frontload.
- Accrual Method: Employees earn one hour for every 30 hours worked. You can cap this at 80 hours and must allow unused time to roll over.
- Frontload Method: You give a set amount at the start of each year – at least 40 hours or 5 days. The benefit? No rollover to track.
Regardless of which you use, employees can start using their time after 90 days of employment.
What It Can Be Used For
This isn’t just about sick days for the employee themselves. The law covers:
- Preventive care or illness (doctor appointments, recovery time)
- Caring for a family member, including extended definitions like grandparents and domestic partners
- Time related to domestic violence, stalking, or sexual assault
- Time to support a “designated person” – a close friend the employee chooses each year
One critical detail: employees don’t have to tell you why they’re out. No diagnosis is required, and employers aren’t allowed to demand details.
“…Local ordinances – like those in Los Angeles, San Francisco, and Oakland – may require even more generous policies. And remote employees? Their local rule applies, not your HQ’s.“
The 2024 Update
Here’s what changed last year: the minimum paid sick leave in California increased from 3 days (24 hours) to 5 days (40 hours). If your employee handbook, offer letters, or payroll system still reflects the old number, you’re out of compliance.
And it doesn’t stop there. Local ordinances – like those in Los Angeles, San Francisco, and Oakland – may require even more generous policies. And remote employees? Their local rule applies, not your HQ’s.
There are also stricter retaliation protections now. If an employee takes sick leave and suddenly finds themselves passed over for a shift or promotion, that could raise legal red flags.
Where Businesses Slip Up
These are the most common compliance missteps we see:
- Forgetting about part-time staff: All employees accrue sick leave, no matter their schedule.
- Under-frontloading: Some companies still give only 24 hours, unaware the law has changed.
- Outdated documents: Handbooks, onboarding materials, and offer letters need updates to reflect 40 hours.
- Carryover confusion: Accrual systems can be capped at 80 hours, but must still allow full usage.
- Applying the wrong ordinance: The employee’s work location – not your business location – determines which local rule applies.
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Documentation and Systems
Every pay stub must show the employee’s available sick leave balance. Your payroll provider might automate this, but you need to confirm. And if you don’t use the pay stub method, you have to give a separate, written notice each pay period.
You also need to keep records for at least three years – accruals, usage, and balances. These are your defense if a complaint arises.
And yes, you can ask for advance notice if the leave is foreseeable, but don’t require a doctor’s note unless you have a consistent and reasonable policy in place.
What About Contractors?
Paid sick leave only applies to employees, but if your contractor behaves more like an employee, you may be misclassifying them. That opens the door to fines, back wages, and missed benefit claims – including sick leave. Classification matters.
Leading with Clarity and Care
Beyond compliance, how you handle paid sick leave sends a message to your team. If employees feel punished for calling out sick, they’ll come in anyway – and that “presenteeism” can hurt productivity and morale more than an absence would.
Creating a culture of trust starts with your policies. Be clear, be consistent, and don’t guilt people for using the time they’re legally entitled to.
Action Steps for Employers
- Update your policy to reflect the 40-hour minimum and clarify accrual or frontload usage.
- Review your payroll system to ensure balances are tracked and visible on pay stubs.
- Check for local ordinances that may require more generous leave.
- Train your managers to handle sick leave requests with compliance and care.
- Communicate clearly so your team understands how to use their leave – and knows they won’t be penalized.
Managing sick leave the right way isn’t just about legal protection – it’s about leadership. When your policies are compliant, your systems are clean, and your team feels safe using their time, you’re building something stronger than just a policy. You’re building trust.
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