Have you heard about California's new sick leave law? Here's what nonprofits need to know.

Did you know that nearly 1 million people in California work for a nonprofit? As the 4th largest industry by employment, it's vital that we know when laws change that affect employees in our state.

Beginning in July 2015, all California employees, including those working for nonprofits, will accrue one hour of paid sick leave for every 30 hours worked. Employers may choose to cap the usage at 3 sick days (24 hours) leave per year.

The Details: 

• The law requires workers to be employed 90 days before using accrued sick leave. 
• To qualify for sick leave accrual, employees will have to work 30 or more days in a year.
• Sick leave may be used for themselves or to care for family members.
• Employers must provide a written statement of accrual and balance of sick leave to each employee with each paycheck.
• This accrued/unused sick leave does NOT have to be paid out at termination of employment.
• In-home care workers are excluded from the law, as well as certain union employees (depending on their contract). 
• Additional posters and notices regarding the law will be required in 2015.
• Employers that already have a policy (sick or PTO) in place that meets all the standards of the law, are not required to make additional time available.

Usage and Capping the Accrual: 

The amount of sick time used can be capped at 3 days per year (24 hours) and any unused sick time at the end of the rolling-12-month period must be rolled to the next 12-month period. The employer can cap the maximum accrual at six days (48 hours). So if any employee has 6 sick days accrued at the end of any given 12-month period, the 6 days will be rolled into the next 12-month period - but no new sick time will accrue until some sick time is used.  

Example: All existing employees as of 7/1/15 will have their 12-month period start on that day (new employees will have their 12-month period start on the day of hire).  Existing employee A begins accruing sick leave on 7/1/15 (working 30 hours/week), and needs to take 2 sick days in mid-October. Sick time accrued

July = 4 hours

August = 4 hours

September = 5 hours

Mid-October = 2 hours

Employee A has 15 hours accrued to be used mid-October.