The California Paid sick leave law, AB 1522 came into effect on July 1st. Proposed amendments to the leave law were only passed by the senate on July 13th, and signed into law by Governor Brown on the 14th. The amendment provides clarification, and small changes to a number of areas of the Act.

Employers who were already providing paid sick leave or time off prior to January 1st 2015, are not required to provide additional paid sick days if the policy in place meets certain specified condition.

The motion picture and broadcasting industry commonly use different third party payroll companies on each production, so extra time is required to satisfy notice requirements. Both employer and labor representatives in the industry agreed to extend the deadline for written notice requirements to January 21st, 2016.

One of the biggest changes is the calculation of payments for paid sick time accrued. Originally payment was calculated based on an employee’s hourly rate. For employees who earn different hourly rates of pay, are paid by commission or piece rate, or are nonexempt salaried employees, the rate of pay was calculated based upon the wages paid, not including overtime premium pay, and the hours worked in the full pay periods that the employee worked during the prior 90 days.

The amendment states that:

  1. For nonexempt employees, employers may choose one of two options:

    • Calculate paid sick leave in the same manner as the regular rate of pay for the work wee in which the employee uses the paid sick time
    • Calculate paid sick leave by dividing the employee’s total wages, not including overtime premium pay, by the employee’s total hours worked during the full pay periods that the employee worked during the prior 90 days

  2. For exempt employees, paid sick leave is calculated in the same manner as the employer calculates wages for other forms of paid leave

A full list of changes and clarifications can be viewed here.