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Paid Sick Leave and Employer Attendance PoliciesFģ. TIMES NEWSLETTERS DIRECTOR CHANGES CODE(Note, however, the provisions of Labor Code section 227.3 concerning the requirements for payment for vested vacation time at termination of employment.) In practical terms, this means that an employer may compensate employees under an existing paid time off plan for vacation or personal holiday time, during employment, at a “base rate” of pay, whereas time taken as paid sick leave must be paid at a higher regular rate of pay (determined for the workweek or by a 90-day average), as described above. The new paid sick leave law, however, does not address in any way, nor impact, how employers must compensate employees under existing paid time off plans for time that is taken off for purposes other than paid sick leave, for example, for time that is taken as vacation, or for personal holidays, etc. This means that an employer using a grandfathered paid time off plan must ensure that time that is taken off for paid sick leave must be paid in the manner as specified in the new law (as quoted and summarized above). In general terms, these provisions mean that time taken off as paid sick leave must be paid at an employee’s regular rate of pay, either for the workweek in which the paid sick leave was taken, or as determined by averaging over a 90-day period.Īn employer using a “grandfathered” (i.e., existing) paid time off policy or plan must ensure that the plan “makes available an amount of leave applicable to employees that may be used for the same purposes and under the same conditions as specified in” section 246 of the new law.
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