Accrued Leave Definition | Accrued Sick Leave in California

What is Accrued Leave?

Accrued leave is the amount of paid time off (PTO) that an employee has accrued but has yet to use. Depending on the company’s policy, it can be a variety of kinds of paid time, such as holidays, sick days, and personal days.

Here’s how it typically works:

Employers’ leave: Employee leave is typically determined by the number of hours, days, or months they’ve been working. For instance, a worker may earn a certain number of hours of paid leave during a pay cycle.
Accrual Rate: The amount of leave that accrues is typically outlined in the company’s policy. For example, an employee could earn 1.5 days of leave each month or a few hours every week.
Carrying over Leave: Depending on the company’s policies and procedures, accrued time can be carried over to the following year even if not used. Certain companies have a limit on the amount of leave that is allowed to be carried over; however, others may require the leave to be utilized within a specific time frame.
Accrued Leave upon Termination: If an employee quits an organization and leaves the company, they’re usually entitled to receive compensation for accrued but unused leave, subject to local laws and the policies of the company.

Accrued leave ensures employees have time off and still earn income, allowing companies to balance work and personal well-being.

Accrued Sick Leave in California

Accrued sick days in California are controlled under the state’s Paid Sick Leave Law, also known as the Healthy Workplaces, Healthy Families Act of 2014. The law allows employees to accumulate paid sick time to use for personal or family health issues.

Here’s a breakdown of how it works:

Key Provisions:

Eligibility:

The law is applicable to all employees working at a location in California for the same company for a minimum of 30 days during the course of a year.
This is a reference for temporary, part-time, full-time, and seasonal workers.

Accrual Rate:

Employees earn at least one paid sick day per 30 hours of service.
Employers can limit the amount of accrual to 48 hours or 6 days. When an employee reaches this limit, they cease accruing sick leave until they utilize a portion of it.

Usage:

Employees may benefit from accruing sick time starting on day 90 of their employment.
The leave to attend to their own or a relative’s preventive medical care, diagnosis, or treatment of an existing health issue or for specific reasons that relate to sexual assault, domestic violence, and stalking.

Carryover:

Accrued sick time is carried over from year to year; however, employers can limit the time for carryover to 48 hours or six days.
Despite the carryover, employers are able to limit the amount of vacation time employees can take within a year to three days, or 24 hours.

No Payout at Termination:

Sick leave is different from PTO or vacation time in that it is not necessary to be paid after an employee leaves the business. However, if an employee is rehired within the year, their unused and unutilized sick leave must be reinstated.

Record-Keeping:

Employers are required to keep track of employees’ earned and used sick time for a minimum of 3 years.

Posting and Notification Requirements:

Employers must give written notice of paid sick time available on the employee’s wage report as well as in an additional form on the pay date that is designated.
They also have to display a notice of employees’ rights under the law in an area visible at work.

Important Considerations:

Local Ordinances: Certain municipalities and counties within California have paid sick leave laws that provide additional benefits over and above those provided by state law. Employers must abide by the laws of both local and state and follow the law that provides the most expansive benefits to employees.
Policy of the Employer: Employers may offer an additional expansive sick leave policy should they wish. However, they must be able to comply with the minimum standards required under California legislation.

Accrued sick time provides employees with the time they need to deal with health issues without the threat of losing money while ensuring that employers have a healthy workforce and that they are productive and healthy.

Also See: Bereavement Leave | Maternity Leave | Paternity Leave