LA Ordinance - Mandatory Sick Leave

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On June 2, 2016, the City of Los Angeles passed an ordinance which strengthens California’s state mandated paid sick leave requirements. The new ordinance went into effect July 1, 2016 for all employers with more than 25 employees. All employers in the City with 25 employees or less must be compliant with the new ordinance on July 1, 2017. This law applies to all employees that work in the City of Los Angeles over 30 days during a 12-month period.

"The NOVAtime workforce management solution easily accommodates these new requirements, ensuring that our customers remain compliant," said Brian Meharry, Vice President of Business Development.

Here is a summary of the differences between the city ordinance and the state law:

  • The ordinance doubles the amount of paid sick leave that is required to be offered, from the state's 24 hours a year to 48 hours a year.
  • Total accrual of paid sick leave hours is capped at 72 hours, vs the state's 48 hours.
  • A company may limit an employee’s use of paid sick leave to 48 hours per calendar year, employment year, or other 12-month period, vs the state law’s yearly “use cap” of 24 hours.
  • Under the city ordinance, both sick leave acquired in a “lump sum” at the beginning of the year as well as sick leave accrued throughout the year are able to be “rolled over” to the next year up to 72 hours. The state law, on the other hand, only allows leave that was accrued throughout the year to roll over.
  • The LA ordinance expands the allowable use of the sick leave, allowing it to be used for personal illness or the illness of “any individual related by blood or affinity whose close association with the employee is the equivalent of a family relationship.” The state, on the other hand, limits the use to personal illness or the illness of a direct family member.
  • The LA ordinance is enforced by the City of Los Angeles Office of Wage Standards, which has the power to inspect workplaces, collect back wages, and assess administrative fines against companies found to be in violation of the new ordinance.

Written notice of any change in existing policy must be provided within 10 days of the implementation of the change, as well as posting notice regarding sick leave entitlement. There is a per-employee penalty of $120 per day. Contact your labor attorney for more information. Join us for the complimentary Mid-Year Employment Law Review webinar on August 4th. Click here for more information.

NOVAtime customers should contact their resellers or Support department to adjust their PTO/sick leave policy ASAP, if they have not done so.

For additional information, please contact NOVAtime: 877-486-6682 - or - Click here