New information regarding the San Diego minimum wage/sick leave law

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We have sent out previous Alerts regarding the evolution of the San Diego Earned Sick Leave and Minimum Wage Ordinance. There are now further developments to report. An Implementing Ordinance, previously approved by City Council, was approved by the Mayor on August 3, 2016, and will take effect September 2, 2016. This Implementing Ordinance will supplement the original law with additional provisions that:

  • Allow employers to cap the total accrual of sick leave by an employee at 80 hours
  • Allow employers to front load no less than 40 hours of sick leave to the employee at the beginning of each benefit year as an alternative to the accrual method set forth in the original law
  • Clarify the enforcement process including a civil penalty cap of $10,000 for employers with no previous violations
  • Clarify language regarding the provision of sick leave to be more consistent with State law

Although the Implementing Ordinance takes effect September 2nd, it is important to remember that the original law went into effect on July 11, 2016, and therefore, employers were required to comply with the new minimum wage and sick leave requirements as of July 11th. Accordingly, employers should have their accruals under this law commence effective July 11th regardless of the accrual method they are using. The City of San Diego has issued notices and postings that employers can use to be compliant with notice requirements. They can be downloaded at www.sandiego.gov/treasurer/minimum-wage-program New notices/postings that incorporate the additional provisions of the Implementing Ordinance are forthcoming. An employer who is simultaneously covered by both the California and a local ordinance for minimum wage and/or sick leave obligations must remember that the provisions providing more benefit to the employee should be implemented. It is highly recommended that employers consult with employment counsel when implementing these complex policies.