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San Francisco Approves Sick Leave Ordinance:
What Business Owners Need to Know
The City of San Francisco has passed a new ordinance (Proposition
F) that guarantees paid sick leave to virtually all workers in the City and County of San Francisco. This is a new law that is
not related to the San Francisco Health Access
Plan. Proposition F covers full-time, part-time and temporary workers. The new law takes effect on February 5, 2007 for workers currently employed within City limits and 90 days after date of hire for employees hired after February 5, 2007.
How Does the Plan Work?
- Employees accrue one hour of paid sick leave for every 30 hours worked. Paid sick leave accrues only in whole hour increments.
- For employees of small businesses (fewer than 10 employees), accrual caps at 40 hours. For employees of businesses with more than 10 employees, sick leave accrual caps at 72 hours.
- Accrued paid sick leave carries over from year to year.
- Employers with an equivalent or more generous sick or paid time off policy are not required to provide additional paid sick leave.
- The definition of "sick leave" is broader than that defined in the California Labor Code. Under the ordinance, an employee may take sick leave for their own illness or medical condition or to care for a child, parent, legal guardian, sibling, grandparent, grandchild, spouse, registered domestic partner or partner’s children, or "designated person" who is ill, injured or in need of medical care. An employee who does not have a spouse or domestic partner may designate one person for whose care the employee may use some or all of their paid sick leave.
- Requirements of the law may not apply to employees covered by a collective bargaining agreement if the requirements were clearly waived in the agreement.
- The ordinance does not define a minimum number of hours to be considered a “part-time” worker, but does specify that temporary workers include those hired directly or through a staffing agency.
Employer Responsibilities
Under Proposition F, the onus is on the employer to implement and carry out the law:
- An employer may require employees to give reasonable notice of absence but may not require employees taking paid sick leave to find a replacement worker to cover their hours.
- Employers may only take “reasonable measures” to verify or document that the employee's use of paid sick leave is lawful.
- Employers must post a notice on the job site in English, Chinese, Spanish and any other language spoken by at least 5% of workers. Downloadable workplace posters are available from the
City of San Francisco
website.
- Employers must provide a 10-day window within an employee’s first 30-hour accrual period for an employee to name a designated person, and a 10-day window annually thereafter for the employee to change their designation.
- Employers may not take any retaliatory actions against employees who exercise their right to use paid sick leave (e.g., discharge or threaten to discharge, demote, suspend, discriminate against or “take adverse action against”). These protections also apply to employees who “mistakenly but in good faith” allege that their employer violated this law.
- An employer is not required to pay out accrued but unused paid sick leave to an employee who terminates.
- Employers must retain records of hours worked and sick leave accrued and taken for four years. This is one year longer than the current California requirement for retention of pay and timekeeping records.
- Employees may report suspected employer violations to the Office of Labor Standards Enforcement. Employers who are found to have violated the law may be required to repay to the employee sick leave pay withheld as well as administrative penalties.
Things to Do Before February 5, 2007
- Determine whether current sick leave program complies with the new law. Adopt or revise sick leave policies to conform to the new law.
- Update timekeeping, payroll and recordkeeping procedures as applicable.
- Develop a procedure and written form for employees to name a designated person.
- Download and post workplace
posters.
- Notify employees of the new program, or confirm to employees that the existing
program is equivalent to or more generous than the City mandate.
The new law may raise questions or ambiguities for certain employers, such as companies with multiple locations both in and out of San Francisco or employees who split their time between San Francisco and another location. It is recommended that employers work with legal counsel to determine how the law would pertain to their unique circumstances.
Related Events:
- The City of San Francisco will hold public meetings on January 8 and 11, 2007 to explain the provisions of the new law. Visit the
City website for more information.
- NCHRA will host a seminar on the new sick leave ordinance on January 10, 2007. For more information, visit
NCHRA.org.
This document is not intended to provide any legal advice or analysis. Please
consult your own legal counsel for further information on the topics discussed in this
issue of Insight.
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