Beginning July 2015: California Law Requires Sick Pay
As of July 2015, all California employers, regardless of size, are required to offer sick leave to their employees. These sick days accrue at a rate of no less than one hour per every 30 hours worked. The employee has the right to use that sick pay beginning 90 days after commencing employment. Employers may limit the use of the sick days to 24 hours/year. Unused sick pay may carryover from year to year.
As a result of this new law, DCPS will begin processing payroll in a new way.
For the text of the bill see:
CHANGE IN DCPS PAYROLL SYSTEM
1. PAYMENT METHODS
We will now only support two methods of payment:
A) Hourly Wage + Discretionary Bonus*
B) Percentage Split
WE WILL NOT BE SUPPORTING THE “REMAINDER” PAYMENT METHOD AFTER JULY 1, 2015.
*Calculating Employee Bonus
In order to help employers determine a bonus amount, we are supplying a “Employer’s Worksheet” for your convenience. This spreadsheet enables the employer to set aside money for all of his/her employer-related expenses including employer payroll taxes and supervisor’s profit, and give the employee the remaining money as a bonus.
[Please note: This spreadsheet has formulas embedded, so making changes to the spreadsheet (outside of entering relevant figures) may alter the formulas and thus the bonus calculation.]
2. NEW REQUIRED REPORTING TEMPLATE
Beginning July 1st, we will REQUIRE all DCPS clients to submit their monthly payroll figures using our “DCPS Reporting Template” form.
NOTE: We do not need the employer's spreadsheet, which is for your records and use only. Please only send to us the Reporting Form each month. The attached version is a writeable PDF you can enter figures, save and email back to us.
3. DEFAULT SICK PAY LIMITS
DCPS default system will limit sick days to 24 hours/year and reset sick pay at the end of the calendar year (so it does not accrue). If you would like to increase the sick pay and/or enable your employee’s sick pay to accrue, please let us know.
We realize this is a major change to our services, and reduces the options that employers have about how to pay their employees. However, California law is changing and requires our business to conform with the new requirements. For answers to common questions about these changes, please see our FAQs.
Development Consulting Payroll Services Team