California Governor Signs New Law Expanding California State Sick Leave

On October 4, 2023, Governor Gavin Newsom announced that he signed SB 616, which expands the state law with respect to paid sick leave. The new law will be effective January 1, 2024, and increases the minimum amount of sick leave per year from 24 hours (or three days) to 40 hours (or five days).

The accrual rate remains the same at one hour of sick leave for every 30 hours worked, although employers can satisfy the requirements for accrual using another method if "an employee has no less than 24 hours of accrued sick leave or paid time off by the 120th calendar day of employment or each calendar year, or in each 12-month period, and no less than 40 hours of accrued sick leave or paid time off by the 200th calendar day of employment or each calendar year, or in each 12-month period."

The new law also allows employers to cap usage at 40 hours (or five days) each year. The new law will increase the cap on accrual of paid sick leave from 48 hours (or six days) to 80 hours (or 10 days).

Many California local jurisdictions have their own independent sick leave laws that California employers will need to consider along with the new state law.

California employers should reach out to experienced counsel with questions and review sick leave policies before the new law goes into effect.