BILL ANALYSIS                                                                                                                                                                                                    

                                                                     AB 304

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          Date of Hearing:  May 27, 2015


                                 Jimmy Gomez, Chair

          304 (Gonzalez) - As Amended May 22, 2015

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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No

          SUMMARY: This bill makes a number of changes to legislation  
          enacted last year related to paid sick days.  Specifically, this  

          1)Provides that the definition of "employee" does not include  
            specified retired annuitants.


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          2)Specifies that the law applies to an employee who works in  
            California for the same employer for 30 or more days within a  

          3)Amends the law to clarify the terms under which an employer is  
            not required to provide additional sick days. Specifically,  
            modifies the requirement that the employer provide no less  
            than 24 hours or three days of paid sick leave to require this  
            benefit be provided for use at the beginning of each year of  
            employment.  Allows the employer to use a different accrual  
            method other than providing one hour per every 30 hours worked  
            (as prescribed under existing law), provided that the accrual  
            is on a regular basis as specified.

          4)Provides that an employer is not required to reinstate accrued  
            paid time off to a rehired employee that was paid out at the  
            time of termination, resignation, or separation of employment.

          5)Authorizes an employer that provides unlimited paid sick leave  
            or unlimited paid time off, to satisfy a written notice  
            requirement of existing law by indicating on the notice or the  
            employee's itemized wage statement that such leave is  

          6)Delays application of provisions related to the inclusion of  
            the amount of paid sick leave available on itemized wage  
            statements, or separate writings, until January 21, 2016, for  
            employers in the broadcasting and motion picture industries.

          7)Specifies paid sick time for exempt employees shall be  
            calculated in the same manner as the employer calculates wages  
            for other forms of paid leave time, and clarifies the regular  


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            rate of pay for non-exempt employees so it is aligned with the  
            method for how overtime pay is determined.

          8)Clarifies an employer is not obligated to inquire into or  
            record the purposes for which an employee uses paid leave or  
            paid time off.


          FISCAL EFFECT: 

          This bill will result in savings to state and local governments  
          due to the exemption of retired annuitants from sick leave  
          requirements and other clarifications of law related to accrual  
          and provision of paid sick leave.


          Purpose.  According to the author, this bill aims to improve and  
          ease implementation of California's new paid sick leave law.   
          Last year, AB 1522 was signed into law providing more than 6.5  
          million workers the right to accrue no less than three paid sick  
          days a year.  However, the passage of such a sweeping workplace  
          benefit has spurred a robust public discussion regarding the  
          implementation of the law.  As such, the author wishes to  
          clarify a handful of the law's requirements before the law goes  
          into effect on July 1, 2015. 

          Committee amendment.  The committee proposes to add an urgency  


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          clause to ensure the provisions of this bill take effect  
          concurrent with the implementation of the original sick leave  

          Analysis Prepared by:Misty Feusahrens / APPR. / (916)