If you have employees working in Santa Monica, be prepared for the city's paid sick leave ordinance going into effect January 1, 2017. Under the Santa Monica ordinance, employees will accrue paid sick time at the rate of one hour for every 30 hours worked. The ordinance provides for caps on accrual at 40 hours for employers with 26 or more employees and 32 hours for employers with 25 or fewer employees. Those caps increase to 72 hours and 40 hours, respectively, on January 1, 2018. Note: The ordinance is inconsistent with California law to the extent that it allows caps that are lower than the 48-hour cap permitted under California law. Read attached for more details.
Santa Monica Local Paid Sick Leave Developments
These Cities Must Increase Wages On 1-1-17:
Local 2017 Minimum Wage Increases
If you have employees working in these cities, you should ensure that all employees are being paid at least the new local minimum wage rate as of January 1, 2017. For localities with minimum wage and paid sick leave ordinances click: CalChambers Local Minimum Wage and Paid Sick Leave chart.
Cupertino and Los Altos recently passed minimum wage ordinances to raise the minimum wage in those cities to $15 per hour by 2019, and San Leandro passed an ordinance raising its minimum wage to $15 per hour by 2020. Employers must post a minimum wage notice in the top five languages spoken by city residents; the notice will be issued by the city. For more information, visit Cupertino, Los Altos and San Leandro. Read attached for more details.
New Minimum Wage Ordinances:
Cupertino, Los Altos and San Leandro
Palo Alto and San José recently amended their minimum wage ordinances. On September 26, 2016, Palo Alto's City Council approved an ordinance that will increase the city's minimum wage to $12 per hour on January 1, 2017; $13.50 per hour on January 1, 2018; and $15 per hour on January 1, 2019. After 2019, the rate will increase annually per the CPI. Employers must post the new minimum wage notice issued by the city. The ordinance will not require employers to provide additional hours if doing so will put an employee into overtime hours. Employers must use a transparent and nondiscriminatory process to distribute hours to existing employees. Read attached for details.
Changes to Existing Minimum Wage Ordinances:
Palo Alto and San José
City of Berkeley New City Paid Sick Leave Ordinance
The City of Berkeley became the newest city with a paid sick leave ordinance when Ordinance No. 7,505-N.S. was passed on August 29, 2016. The ordinance will not go into effect until October 1, 2017. Under Berkeley's ordinance, employees will accrue paid sick leave at the rate of one hour for every 30 hours worked. Businesses with 24 or fewer employees can cap accrual at, and limit use to, 48 hours per calendar year. Employers with 25 or more employees can cap accrual at 72 hours but cannot put a limit on use of paid sick leave. Read attached for more details.
San Diego Revisions
Employers in San Diego should be aware that the city issued a new FAQ stating that exempt employees are not covered by the city's paid sick leave ordinance. For more details on local paid sick leave laws and how they compare to the Cali
fornia law, see the CalChamber™ Comparison of California State and Local Paid Sick Leave Laws chart. Read attached for more details.
San Francisco's Paid Parental Leave Ordinance
Beginning January 1, 2017, San Francisco's Paid Parental Leave Ordinance (PPLO) requires employers in San Francisco to provide supplemental compensation to employees who receive Paid Family Leave benefits for taking time off to bond with a new child. The PPLO is a wage replacement program; it is not a form of protected leave. For more information, see San Francisco's PPLO webpage. Read attached for more details.
The recent explosion of California cities passing minimum wage and paid sick leave ordinances affect Employers with employees working in the affected areas who must comply with both state and local ordinances, following whichever law is more favorable to employees. This is a real challenge for employers, especially those with employees working in multiple localities with different minimum wage and paid sick leave requirements. And, the changes keep coming.