Assembly Passes Mandatory Sick Leave Bill

By Michael C. Saqui and Anthony P. Raimondo

The California Assembly has passed AB 2716, which will require many California employers to provide mandatory sick leave. The measure would allow the sick leave to be used for a personal illness, to care for a sick family member, or to recover from domestic violence or sexual assault.

Proponents of the measure estimate that it will provide paid leave for more than 5 million Californians – about a third of the work force. They claim that paid sick leave improves morale, minimizes turnover, and reduces health care costs. Opponents said AB 2716 would impose a one-size-fits-all mandate that many small businesses simply cannot afford.

The Assembly approved the bill, 43-25, with no Republican support. Gov. Arnold Schwarzenegger has taken no position on the legislation, which now goes to the Senate.

Under AB 2716, businesses of 10 employees or more would be required to provide up to nine days of sick leave per year. Smaller firms would provide up to five days. Full-time and part-time workers would earn one hour of sick leave for every 30 hours worked. The benefit could be used after 90 days of employment.

If signed into law, the requirement would be overseen by the Department of Industrial Relations, whose costs would be about $600,000 annually, according to the Assembly Appropriations Committee. The measure also could be enforced through civil lawsuits.

San Francisco and Washington, D.C., have passed mandatory sick leave legislation, but no states have done so, Ma said.

The California Chamber of Commerce, in a letter of opposition, noted that many employers voluntarily offer paid sick leave. "In an already troubled economy, California should be seeking ways to stimulate job growth and avoid forcing costly mandates on employers," the group wrote.

COUNSEL TO MANAGEMENT:

Employers should contact their state senators to tell them to oppose this bill, and should contact their industry associations to mobilize operations.

Many employers will have to enhance their existing sick leave policies in order to comply. 7 days of sick leave a year (56 hours) is generous by industry standards, but the proposed law entitles employees to nine days. Even unionized employers may have to enhance the sick leave available under their collective bargaining agreements. One collective bargaining agreement that we have reviewed provides sick leave for employees at a ratio of 1 hour of sick leave for every 60 hours of "straight time" worked. This bill however, would provide 1 hour of sick leave for every 30 hours of work (straight time or not)...at straight time alone (2080 hrs/yr) this would equate to 69.33 hours per year. The time is now to oppose this burdensome and destructive proposal.

The goal of this article is to provide employers with current labor and employment law information. The contents should not be interpreted or construed as legal advice or opinion. For individual responses to questions or concerns regarding any given situation, the reader should consult with Saqui & Raimondo at (831) 443-7100 in Salinas, or (916) 782-8555 in Sacramento.