FAQs: New Sick Pay Law & Hourly + Bonus
Why are you now offering only two methods of payroll processing?
In order to comply with the new sick pay law in California, and to better conform to CAMFT’s developing preferences, we are now only offering an hourly + bonus OR percentage split of payroll processing. The bonus feature we suggest allows for employers/supervisors to have flexibility in the actual amount paid to the employee, while ensuring compliance.
What if my intern’s work does not generate enough money to pay them minimum wage?
You are required to pay your employee/intern at least minimum wage (minimum wage varies by location). Therefore, if your employee did not generate enough income to cover minimum wage for the hours worked, the employer must pay out of pocket to pay the minimum wage due.
What if my intern’s work does not generate enough money to pay a bonus?
While you are required to pay your employee/intern minimum wage, the bonus is discretionary. If your employee did not generate enough income to pay her/him a bonus in addition to the minimum wage, the employer can choose to either not pay a bonus for that pay period, or pay out of pocket to pay a bonus of any amount desired.
Do I have to pay a bonus every month?
No. The bonus is 100% discretionary.
Does the bonus amount have to be the same every month?
No. The employer can change the bonus to any amount from pay period to pay period?
What is the best way to determine my employee’s monthly bonus?
The attached supervisor’s spreadsheet can help you determine a bonus for your employee that enables the employer to put aside the money for all expenses including employer payroll taxes and supervisor’s profit, and give the remaining money to their employee.
How will my employee/intern see how many sick hours she/he has accrued? Or used?
The number of sick hours accrued will be reflected in each pay stub.
Do I need to pay out my employee for unused sick pay when she/he is done with the employment?
No. Unused sick pay does not need to be paid out upon termination of the employment.
Does sick pay accrue from year to year?
It can. DCPS default is to “reset” sick pay accrued at the end of the calendar year. If you want your employee to accrue sick pay from year to year, please let us know.