BILL ANALYSIS                                                                                                                                                                                                    ”



                                                                       AB 304


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          ASSEMBLY THIRD READING


          AB  
          304 (Gonzalez)


          As Amended  June 2, 2015


          2/3 vote.  Urgency


           ----------------------------------------------------------------- 
          |Committee       |Votes |Ayes                |Noes                |
          |                |      |                    |                    |
          |                |      |                    |                    |
          |----------------+------+--------------------+--------------------|
          |Labor           |5-1   |Roger HernŠndez,    |Harper              |
          |                |      |Chu, Low, McCarty,  |                    |
          |                |      |Thurmond            |                    |
          |                |      |                    |                    |
          |----------------+------+--------------------+--------------------|
          |Appropriations  |11-5  |Gomez, Bonta,       |Bigelow, Chang,     |
          |                |      |Calderon, Eggman,   |Gallagher, Jones,   |
          |                |      |Eduardo Garcia,     |Wagner              |
          |                |      |Gordon, Holden,     |                    |
          |                |      |Quirk, Rendon,      |                    |
          |                |      |Weber, Wood         |                    |
          |                |      |                    |                    |
          |                |      |                    |                    |
           ----------------------------------------------------------------- 


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


          1)Provides that the definition of "employee" does not include  








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            specified retired annuitants.


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


          3)Provides that an employer may use a different accrual method,  
            other than providing one hour per every 30 hours worked,  
            provided that the accrual is on a regular basis so that 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 each 12-month basis.


          4)Provides that an employer may satisfy the accrual requirements  
            of this section by providing not less than 24 hours or three  
            days of paid sick leave that is available to the employee to use  
            by the completion of his or her 120th calendar day of  
            employment.


          5)Amends the law to provide that an employer is not required to  
            provide additional paid sick days if the employer has a paid  
            leave policy or paid time off policy, the employer makes  
            available an amount of leave that may be used for the same  
            purposes and under the same conditions of the existing paid sick  
            days law, and the policy does either of the following:


             a)   Satisfies the accrual, carry over, and use requirements of  
               the law.


             b)   Provides no less than 24 hours or three days of paid sick  
               leave, or equivalent paid leave or paid time off, for  
               employee use at the beginning of each year of employment,  
               calendar year, or 12-month period.








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          6)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.


          7)Provides that if an employer provides unlimited paid sick leave  
            or unlimited paid time off, the employer may satisfy a specified  
            written notice requirement of existing law by indicating on the  
            notice or the employee's itemized wage statement that such leave  
            is "unlimited."


          8)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.


          9)Provides that paid sick time for nonexempt employees shall be  
            calculated in the same manner as the regular rate of pay for the  
            workweek in which the employee uses paid sick time, whether or  
            not the employee actually works overtime in that workweek.  Paid  
            sick time for exempt employees shall be calculated in the same  
            manner as the employer calculates wages for other forms of paid  
            time leave.


          10)Provides that an employer is not obligated to inquire into or  
            record the purpose for which an employee uses paid leave or paid  
            time off.


          11)Provides that the provisions of this bill are severable, as  
            specified.


          12)Makes other related changes.








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          13)Contains an urgency clause.


          EXISTING LAW provides that an employee who, on or after July 1,  
          2015, works in California for 30 or more days is entitled to paid  
          sick days for specified purposes, to be accrued at a rate of not  
          less than one hour for every 30 hours worked.


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, 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.


          COMMENTS:  AB 1522 (Gonzalez), Chapter 317, Statutes of 2014,  
          enacted the Health Workplaces, Healthy Families Act of 2014 to  
          provide paid sick days to specified California employees effective  
          July 1, 2015.  AB 1522 was landmark legislation that extended the  
          right to paid sick days to an estimated 6.5 million California  
          workers.


          This bill makes a number of changes to the legislation passed last  
          year.  



          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 by Governor Jerry Brown - giving  
          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  








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          law goes into effect on July 1, 2015. 

          A coalition of employers, including the California Chamber of  
          Commerce, state that while this bill purports to be a "clean-up"  
          bill, it in fact substantively amends the law to eliminate the  
          opportunity for an employer to provide a more beneficial, accrual  
          based paid sick leave or paid time off policy to their employees.   
          Specifically, they state that many employers in California already  
          offer more generous paid time off or paid sick leave to their  
          employees.  However, most employers allow employees to accrue this  
          time off according to pay period rather than hours worked as it is  
          easier to track and administer.  This type of policy, which is  
          more beneficial to an employee, would be deemed non-compliant by  
          this bill.  


          Analysis Prepared by:                                               
          Ben Ebbink / L. & E. / (916) 319-2091  FN: 0000527