BILL ANALYSIS Ó
AB 304
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ASSEMBLY THIRD READING
AB
304 (Gonzalez)
As Amended June 18, 2015
2/3 vote. Urgency
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|Committee |Votes|Ayes |Noes |
| | | | |
| | | | |
| | | | |
|----------------+-----+----------------------+---------------------|
|Labor |5-1 |Roger Hernández, 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
AB 304
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