HomeMy WebLinkAbout07-07-2015 C7 Paid Sick LeaveCity of San Luis Obispo, Council Agenda Report, Meeting Date, Item Number
FROM: Monica Irons, Human Resources Director
Prepared By: Nickole Sutter, Human Resources Analyst
SUBJECT: PAID SICK LEAVE POLICY
RECOMMENDATION
1. Adopt a resolution (Attachment 1) approving a Paid Sick Leave Policy, in compliance
with the Assembly Bill 1522 – Healthy Workplaces, Healthy Families Act of 2014 (“AB
1522”).
2. Authorize the City Manager to make future modifications, as needed, to the Paid Sick
Leave Policy and the Temporary Employee Policy for consistency with the law and to
implement in an operationally efficient manner.
DISCUSSION
Background
On September 10, 2014, Governor Brown signed into law Healthy Workplaces, Healthy Families
Act of 2014 (AB 1522), which provides paid sick leave to eligible employees effective July 1,
2015, based on qualifying conditions. In addition, AB 1522 required that employers post a
summary of the Paid Sick Leave law notifying employees of their rights under the law, effective
January 1, 2015. The California Assembly recently passed Assembly Bill 304 – clean up
legislation for AB 1522. The bill is pending in the Senate before being sent to the Governor for
his signature. AB 304 is designated as an “urgency” bill, which means that it will go into effect
immediately upon Governor Brown’s signature. Every indication is that AB 304 will pass in the
Senate and that Governor Brown will sign it into law, likely in mid-July. Authorizing the City
Manager to make future modifications will ensure consistency with the law as this new
legislation unfolds. In previewing a summary of AB 304, it contains clarifications that are
consistent with the draft Paid Sick Leave Policy and recommendations in this report.
AB 1522 provides the following:
1. Notice requirements of AB 1522 that went into effect January 1, 2015.
2. Paid sick leave requirements begin on July 1, 2015, for qualifying employees hired
before or after July 1, 2015.
3. An employee qualifies by working for the City on or after July 1, 2015, at least 30 days
within a year; a 90 day employment period must be satisfied before the employee can use
sick leave.
4. Employers have two choices for paid sick leave accrual:
a. Accrual Method: employees accrue one (1) hour of sick leave for every 30 hours
worked; or
b. Frontloading Method: employers provide 24 hours, or three days of sick leave up-
front at the beginning for each 12-month period.
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Paid Sick Leave Policy Page 2
5. Employers may set a maximum usage per year limit or cap (24 hours or three (3) days,
whichever is greater).
6. Employers may set a maximum accrual limit or cap (48 hours or six days, whichever is
greater).
7. Employers may set a standard usage increment of sick leave at one (1) hour per
occurrence.
AB 1522 also requires that covered paid sick leave be provided for the following three purposes:
1. Diagnosis, care, or treatment of an existing health condition of, or preventative care for,
an employee;
2. Diagnosis, care, or treatment of an existing health condition of, or preventative care for,
an employee’s family member (includes parent, child, spouse, registered domestic
partner, parent-in-law, sibling, grandchild, or grandparent); or
3. For an employee who is a victim of domestic violence, sexual assault, or stalking, the
purposes described in Labor Code section 230(c) and Labor Code Section 230.1(a).
The proposed Paid Sick Leave Policy (Attachment 1, Exhibit A) outlines the method by which
the City will implement AB 1522 effective July 1, 2015. The majority of the City’s temporary
(hourly) employees are unbenefited employees; meaning they are not covered by a Memorandum
of Agreement (MOA), employment contracts, or benefits Resolution. This includes temporary
employees including contract employees not receiving benefits. These are the employees to
which the provisions of AB 1522 are directed. The legislation is unclear with respect to
employees of the City that earn “stipends”, not hourly wages, such as paid advisory body
commissioners and Council members. However, the draft Policy excludes these employees as
practically speaking they do not “call in sick” when unable to attend a meeting. Further, retired
annuitants are excluded from this Policy including those who may respond to out of county fire
needs as they are considered “on call” in that the State or Federal government, not the City,
determines when these resources are necessary. All other line-item (regular full and part-time)
employees are covered under benefits contracts and agreements that exceed the minimum
requirements of AB 1522’s paid sick leave provision. In addition, the definition of a ‘family
member’ has been expanded as part of AB 1522 to allow employees the ability to care for
additional family members than otherwise defined in MOAs or benefits Resolutions per Labor
Code Section 233. Regular employees will be notified of the City’s intent to allow this
beginning July 1, 2015 pursuant to the law.
The Paid Sick Leave Policy (Attachment 1, Exhibit A) is in compliance with the minimum
requirements of AB 1522 and the posting requirements were satisfied as of January 1, 2015. The
Policy states that the City will use the accrual method (#4a above) and cap the usage at 24 hours
or three (3) days, whichever is greater (#5 above). For example, an employee scheduled to work
four (4), 10 hour days, would be allowed to use 30 hours (the equivalent of three (3) days for
their assigned work schedule) of paid sick leave in a 12-month period. Further, the Policy
states that the City will limit accrual to 48 hours or six (6) days, whichever is greater (#6 above).
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Paid Sick Leave Policy Page 3
In addition, the Policy sets the minimum usage of sick leave at one hour (#7 above) for more
flexibility in getting the employee back to work sooner, if the usage is for a doctor’s appointment
and more advance notice when the employee calls in sick unexpectedly.
Changes to Temporary Employee Policy
The Temporary Employee Policy has been updated to refer to the Paid Sick Leave Policy and to
ensure compliance with AB 1522.
FISCAL IMPACT
It is difficult to accurately assess the fiscal impact of this new legislation as it will depend on
whether the temporary employee using sick leave is performing work that must be covered by
bringing in another employee. As an example, in those cases where Parks and Recreation
programs require minimum staffing (such as with day care programs) the City could incur
additional cost due to paying a sick employee as well as another temporary employee to perform
the required work. Staff estimates this could add up to $36,000 in additional costs and believes
the costs can be absorbed within the 2015-17 Financial Plan. It should be noted that accrued sick
leave is not paid out to the employee upon separation of employment with the City.
ALTERNATIVES
Do not approve the resolution and adopt the Paid Sick Leave. This alternative is not
recommended as the City would not be in compliance with the law.
Modify the policy to be more restrictive or more generous. This alternative is not recommended
because many of the provisions are at the legislatively mandated minimums and more generous
benefits are not warranted based on the City’s recruitment or retention needs.
ATTACHMENTS
1. Resolution to adopt the Paid Sick Leave Policy as provided in Exhibit A
T:\Council Agenda Reports\2015\2015-07-07\Paid Sick Leave Law (Irons-Sutter)\CAR - Paid Sick Leave Policy.docx
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R ______
RESOLUTION NO. _____ (2015 Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO,
CALIFORNIA, ADOPTING A PAID SICK LEAVE POLICY, IN COMPLIANCE WITH
THE HEALTHY WORKPLACES, HEALTHY FAMILIES ACT OF 2014 (AB 1522)
WHEREAS, on September 10, 2014 the Governor of the State of California signed the
Healthy Workplaces, Healthy Families Act of 2014 (AB 1522), providing paid sick leave for
covered employees, effective January 1, 2015; and
WHEREAS, the paid sick leave provisions of AB 1522 are effective July 1, 2015; and
WHEREAS, all line-item (regular full and part-time) employees, who are currently
covered by the City’s Personnel Rules and Regulations, a Memorandum of Agreement (MOA),
employment contracts, or benefits Resolution, are provided with sick leave benefits that exceed
the minimum requirements of AB 1522; and
WHEREAS, temporary employees are not covered by the City’s Personnel Rules and
Regulations, MOAs, employment contracts, or benefits Resolutions; and
WHEREAS, the City of San Luis Obispo wishes to establish a paid sick leave policy,
pursuant to AB 1522, applicable to temporary employees; and
WHEREAS, AB 1522 allows the City to establish the accrual method, maximum
accrual, and the minimum usage increment for paid sick leave.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo that:
SECTION 1. A sick leave policy for temporary employees of the City (attached hereto
as Exhibit “A”) is hereby adopted in accordance with the requirements of AB 1522.
SECTION 2. Paid sick leave benefits shall be effective July 1, 2015 and the Paid Sick
Leave Policy shall be modified by the City Manager in the future for consistency with the law
and to implement in an operationally efficient manner.
Upon motion of _______________________, seconded by _______________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this 7th day of July 2015.
ATTACHMENT 1
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Resolution No. _____ (2015 Series)
Page 2
ATTACHMENT 1
____________________________________
Mayor Jan Marx
ATTEST:
____________________________________
Anthony Mejia
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of __________, _________.
_______________________
Anthony J. Mejia, MMC
City Clerk
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Paid Sick Leave Policy
PURPOSE
In compliance with California law Assembly Bill 1522 – Healthy Workplaces, Healthy
Families Act of 2014 (“AB 1522”), effective July 1, 2015 the City will provide all
temporary employees paid sick leave at the accrual rate of one (1) hour of sick leave for
every 30 hours worked, up to three (3) days or 24 hours of paid sick leave to be
provided in a 12-month period. Certain use, accrual, and carryover provisions apply as
explained below. Sick Leave as documented in the Municipal Code (Section 2.36.420
B.1.) and as otherwise provided in any applicable memorandum of agreement or
benefits resolution will continue to apply to regular employees in line-item positions, as
those provisions exceed the requirements of this law.
ELIGIBILITY
All line-item (regular full and part-time) employees are eligible to accrue sick leave
pursuant to the Municipal Code Section 2.36.420. AB 1522 does not impact the accrual
rate of sick leave for such employees, since the prior accrual goes beyond the minimum
requirements of the law. It does however require that the City of San Luis Obispo
provide sick leave to temporary and contract employees. Retired annuitants returning
to work on a temporary basis are not eligible for paid sick leave, including those that are
considered “on call” by the State and Federal Government, such as those hired to
respond to out of county fires. Further, Elected Officials and Advisory Body members
are excluded from AB 1522 as they receive stipends, not hourly wages.
POLICY
In compliance with AB 1522 the City of San Luis Obispo provides paid sick leave to all
temporary employees under the following conditions:
• An employee begins to accrue paid sick leave at the rate of one (1) hour of paid
sick leave for every 30 hours worked beginning on the first day of employment.
Overtime hours are calculated as hours worked for purposes of sick leave
accrual.
• An employee is not eligible to begin using accrued paid sick leave until after 90
days of employment with the City of San Luis Obispo.
• An employee is only allowed to use up to a maximum of three (3) days or 24
hours, whichever is greater, of paid sick leave in a 12-month period. A day is
defined as the typical work hours assigned to an employee. For example, an
employee scheduled to work 4, 10 hour days, would be allowed to use 30 hours
(the equivalent of 3 days for their assigned work schedule) of paid sick leave in a
12-month period.
ATTACHMENT 1 – EXHIBIT A
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Paid Sick Leave Policy
Revised June 2015 Page 2 of 3
• Accrued and unused paid sick leave shall carry forward to the following year of
employment, subject to a 60 hour limit. Periodic audits will be made to ensure
compliance with the law and adjustments will be made accordingly to the
maximum accrual carryover.
• If a temporary employee is promoted to a regular employee in a line-item
position, their accrued and unused sick leave will be carried forward to the new
appointment.
• An employee’s sick leave balance will be reflected on the paystub.
• Paid sick leave will not be considered hours worked for purposes of overtime
calculation.
Interaction with Labor Code § 233 – Kin Care Law
In accordance with California’s Paid Sick Leave law, an employee may use three (3)
days or 24 hours, whichever is greater, of accrued paid sick leave in a 12-month period
for one of the following reasons:
1) For the employee’s own diagnosis, care, or treatment of an existing health condition
or preventative care;
2) For the diagnosis, care, or treatment of an existing health condition or preventative
care for an employee’s family member, including:
• Child (including a biological, adopted, or foster child, stepchild, legal ward, or a
child to whom the employee stands in loco parentis);
• Spouse or Registered Domestic Partner;
• Parent (including biological, adoptive, or foster parent, stepparent, or legal
guardian of an employee or the employee’s spouse or registered domestic
partner, or a person who stood in loco parentis when the employee was a minor
child);
• Grandparent;
• Grandchild;
• Sibling.
3) To obtain any relief or services related to being a victim of domestic violence, sexual
assault, or stalking including the following with appropriate certification of the need
for such services:
• A temporary restraining order or restraining order;
• Other injunctive relief to help ensure the health, safety or welfare of themselves
or their children;
• To seek medical attention for injuries caused by domestic violence, sexual
assault, or stalking;
• To obtain services from a domestic violence shelter, program, or rape crisis
center as a result of domestic violence, sexual assault, or stalking;
• To obtain psychological counseling related to an experience of domestic
violence, sexual assault, or stalking;
• To participate in safety planning and take other actions to increase safety from
future domestic violence, sexual assault, or stalking, including temporary or
permanent relocation.
ATTACHMENT 1 – EXHIBIT A
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Paid Sick Leave Policy
Revised June 2015 Page 3 of 3
Notification Requirements
An employee shall provide reasonable advance notification of their need to use accrued
paid sick leave to their supervisor if the need for paid sick leave use is foreseeable (e.g.,
doctor’s appointment scheduled in advance). Reasonable advance notification for this
purpose is defined as three (3) working days. If the need for paid sick leave use is
unforeseeable, the employee shall provide, at a minimum, a one (1) hour advance
notice to the supervisor or delegate prior to the start of the scheduled shift.
An employee who uses paid sick leave must do so with a minimum increment of one
hour of sick leave.
Separation of Employment
An employee will not receive compensation for unused accrued paid sick leave upon
termination, resignation, retirement or other separation from employment from the City
of San Luis Obispo. However, if an employee is a member of CalPERS and is eligible
for service retirement, conversion of unused sick leave to additional retirement credit is
permitted.
Reinstatement
If a temporary employee separates from the City of San Luis Obispo employment and is
re-hired within one year of the date of separation, previously accrued and unused paid
sick leave hours shall be reinstated to the extent required by law. However, if a rehired
employee had not yet worked the requisite 90 days of employment to use paid sick
leave at the time of separation, the employee must still satisfy the 90 days of
employment requirement collectively over the periods of employment with the City
before any paid sick leave can be used. If a rehired employee worked less than 30
days with the City of San Luis Obispo prior to separation, the 90 day waiting period
would start over at the time of reinstatement.
ATTACHMENT 1 EXHIBIT A
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