BILL ANALYSIS                                                                                                                                                                                                    ”



                                                                     AB 304


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          ASSEMBLY THIRD READING


          AB  
          304 (Gonzalez)


          As Amended  June 18, 2015


          2/3 vote. Urgency


           ------------------------------------------------------------------- 
          |Committee       |Votes|Ayes                  |Noes                 |
          |                |     |                      |                     |
          |                |     |                      |                     |
          |                |     |                      |                     |
          |----------------+-----+----------------------+---------------------|
          |Labor           |5-1  |Roger HernŠndez, Chu, |Harper               |
          |                |     |Low, McCarty,         |                     |
          |                |     |Thurmond              |                     |
          |                |     |                      |                     |
          |----------------+-----+----------------------+---------------------|
          |Appropriations  |11-5 |Gomez, Bonta,         |Bigelow, Chang,      |
          |                |     |Calderon, Eggman,     |Gallagher, Jones,    |
          |                |     |Eduardo Garcia,       |Wagner               |
          |                |     |Gordon, Holden,       |                     |
          |                |     |Quirk, Rendon, Weber, |                     |
          |                |     |Wood                  |                     |
          |                |     |                      |                     |
          |                |     |                      |                     |
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          SUMMARY:  Makes a number of changes to legislation enacted last  
          year related to paid sick days.  Specifically, this bill:  










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          1)Provides that the definition of "employee" does not include  
            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 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 each 12-month period.


          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 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 applicable to employees  
            that may be used for the same purposes and under the same  
            conditions, and the policy satisfies one of the following  
            options:


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


             b)   Provided paid sick leave or paid time off to a class of  
               employees before January 1, 2015, pursuant to a sick leave  








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               policy that used an accrual method different than providing  
               one hour per every 30 hours worked, provided that the  
               accrual is on a regular basis so that an employee,  
               including an employee hired into that class after January  
               1, 2015, has no less than one day or eight hours of accrued  
               leave within three months, and the employee was eligible to  
               earn at least three days or 24 hours within nine months.   
               If an employer modifies the accrual method used in the  
               policy it had in place prior to January 1, 2015, the  
               employer shall comply with any accrual method set forth in  
               existing law or provide the full amount of leave at the  
               beginning of the year.  This bill shall not prohibit the  
               employer from increasing the accrual amount or rate.


          6)Provides that specified sick leave or annual leave benefits  
            provided to specified state employees by statute or the  
            provisions of a memorandum of understanding meet the  
            requirements of the paid sick days law.


          7)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.


          8)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."


          9)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.










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          10)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.


          11)Provides that if the employee, in the 90 days of employment  
            before taking accrued sick leave had different hourly pay  
            rates, was paid by commission or piece rate, or was a  
            nonexempt salaried employee, the rate of pay may be calculated  
            by dividing the employee's total wages, not including overtime  
            premium pay, by the employee's total hours worked in the full  
            pay periods of the prior 90 days of employment.


          12)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.


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


          14)Makes other related changes.


          15)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.










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          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 and other  
          clarification 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 Edmund G. 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 law goes into effect on July 1, 2015. 



          Analysis Prepared by:                                             
                          Ben Ebbink / L. & E. / (916) 319-2091  FN:  
          0000982












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