We are located in NY, but, have four employees who work in Los Angeles.
We front load the required amount of sick leave at the beginning of each year.
Since we front load sick days, at the end of the year are we required to pay out employees unused sick days or they would carry over up to 24 hrs (3 days) of sick days to the following year?
If they carry over 3 sick days to the following year, we are only required to give them 3 additional sick days to equal the required 48 hours?
This is a great question. CA only requires 3 days (24 hours) paid sick leave but LA requires 48 hours (double what the state requires.)
Here’s an article to help https://fitsmallbusiness.com/california-paid-sick-leave-law/
You may want to chat with your payroll provider or accountant to see whether it’s best for you pay out anything unused at year-end (As CA allows) and then start fresh with LA requirement of 48 hours — or whether it’s best to allow employees to rollover the minumum required unused hours, which appears to be 24.
From what I find it appears you can cap the total of numbers at 72 hours (not 48), That means 24 hours (required rollover by state) PLUS the 48 hours you provide this year, as required by LA.
As Fit Small Business serves neither as a legal advisor or tax accountant, you’ll need to verify with your tax advisor or business attorney.
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