Last week, the Labor Commissioner’s office held a webinar on the new paid sick leave mandate — the California Some important points from the webinar regarding paid time off (PTO) policies:
• If employers want to use an existing paid leave or PTO policy that meets the requirements of the Act, they must put any such policy in writing and communicate it to employees.
• Employers can maintain different policies for different classes of employees. For instance, an employer could offer PTO to managers only “as long as the PTO plan is equal to or more generous than the paid sick leave provision.”
• If an employer wants to limit the amount of sick leave an employee can (1) carry over from year to year or (2) take in any given year, the employer should put those limitations in a policy and notify employees.
• “PTO plans will be found compliant if they provide both the same hours for usage AND for the same purposes as outlined in the Paid Sick Leave provision.”
Remember: As long as employers meet the Act’s requirements, they have different options for determining how much paid sick leave, paid leave or PTO employees will receive. An employer does not have to follow the statutory accrual method (one hour for every 30 hours worked) if the employer’s policy that provides no less than three days or 24 hours of accrued paid sick leave, paid leave or PTO for all employees in a 12-month period, year of employment or calendar year.
The employer can determine the accrual rate or method so long as the annual amount provided to all employees is at least three days or 24 hours of paid sick leave, paid leave or PTO. An employer will need to make sure that any paid sick leave, paid leave or PTO policy allows employees to use the leave for all the same purposes and conditions specified under the Act.
Article Courtesy of Gail Cecchettini Whaley