If you're a public or private employer in California, you're required to provide paid sick leave as a benefit, no matter how large or small the size of your business is. Effective July 1, 2015, the law requires that you must provide and allow your part-time and full-time employees (exempt and nonexempt) to use at least 24 hours or three days of paid sick leave per year.
While the California Sick Leave Law provides employers with the option of choosing between four accrual methods for calculating overtime, in this article, we will be explaining how to build policy using the "Statutory Accrual Method," which accrues at the rate of 1 hour for every 30 hours worked, up to 24 hours per calendar year.
- Log onto your Fingercheck account and go to the "Setup" tab. From the drop-down menu on the top left of the page, select "Policies Menu."
- From the list that appears, click on "Accrual Policies" and then on the "Add" button to begin building your policy.
- We've provided a screenshot of how to fill out the Accrual Policy window to create the guidelines for your California Sick Leave policy. We'll make this short and sweet and provide explanations only for need-to-know info. The sick leave law specifies that employees start accruing sick leave starting from their first date of hire, so you'll want to select "No Pending" by "Pending Rule."
- Under the sick leave law, if an employee has unused sick pay, he or she can carry over up to 6 days or 48 hours to the next calendar year. To apply this rule, enter "CalendarYearEnd" by "Rollover Rule" and check the box by "Rollover Carry Forward" to apply this rule.
- If you want to pay out the unused sick leave hours (which you can do), choose the "Rollover Earning" you would like, i.e. "Regular Hours" for regular pay. Once you've finished, click "Add" to add additional rules.
- Now you can enter the PTO Rate Information. "LOS Type” means ‘Length of Service.’ Anyone that works less than the stated 'Length of Service' will have this rule applied to them. So to ensure this will work for all of your employees, go ahead and use the LOS type of “Month,” and set the “Los Number” for “9999." Anyone that has worked less than 9999 months will have this accrual be active for them.
- Since the accrual rate is 1 hour for every 30 hours worked, divide 1 by 30 to arrive at an "Accrual Rate" of 0.0333. Leave the "Max Per Accrual" and "Max Pending" as 0. For "Max Allowed," "Max Available," and "Max Carryover," enter 24. Then click "Apply."
- As you can see, now the policy has been created!
To apply the accrual policy to your employees, you can apply a filter that will automatically apply the policy to all active employees, or, you can add the policy individually.
Here's the first method:
- Go to the "Setup" tab and from the drop-down menu on the top left of the page, select "Security Menu."
- From the list that appears, click on "User Filters" and then on the "Add" button to begin building your policy.
- Add a "Code" and "Description" to identify the filter and check "Show As Filter." Then click the "Add" button to build your filter rules.
- By "Filter On" select "Employee - DivisionEmployeeStatus." For "Operator," select "EqualTo" and for "Value" select "Active." Essentially, we are defining the filter and applying it to every employee who is active. For the "AndOR" field, you can either choose "And" or "Or." In this case, it doesn't really matter, since this field really only exists to help you specify which filter to apply if you have more then one filter per employee. We'll just choose "Or." Save it.
- Now the filter has been created! To apply it to the accrual policy, head back to the "Policies Menu."
- Go to "Accrual Policies," then click into your California Sick policy. Select the "New Hire" filter you have just made, and click "Save." Now if you add a new employee this accrual policy will automatically be added to it.
- To apply the accrual policy to an employee, go to the "Employee" tab, and select an employee.
- From the list that appears go to "Accrual Policies" and then click the "Add" button.
- By "Accrual Policy" select the policy you've just made. By "Allowed as of" enter today's date. For "Allowed Hours" enter 0 so the hours begin to accrue from today on - if you enter 40, it will automatically give the employee 40 hours. For "Last Accrual," "Last Rollover," and "Last Pending Moved" select today's date. Then click "Apply."
- Once you've done that, you should see the accrual policy applied to that employee's profile! Make sure to click "Save" to finish.
It's that simple to create a sick leave policy that operates according to the rules of California's Paid Sick Leave Law.
To learn more about our cost-effective and user-friendly cloud-based time and attendance software, check out our website at Fingercheck.com. Interested in our services? Sign up for a 30-day free trial and get started with Fingercheck today.