Sick Leave Provision - Restaurant Accountant

On January 1, 2017, the provisions of the sick leave law went into effect for the City of Santa Monica. For small businesses in Santa Monica with 25 or fewer employees, workers can earn up to 32 hours of sick leave. For larger businesses with 26 or more employees in Santa Monica, workers can earn up to 40 hours of sick leave. The sick leave law applies to both part-time and full-time employees.

The accrual rate for sick leave is one hour for every 30 hours worked. Employers can either provide base sick leave at the start of the year or implement the accrual method, just as long as the sick leave meets required accrual amounts. The annual cap of sick leave usage is the same as the annual accrual cap; 32 hours for small business employees and 40 hours for large business employees. Employees can use sick leave after the first 90 days of employment or according to employer policies if sooner. Employees can carry over accrued sick leave annually up to the accrual cap. Other company-specific sick leave plans will comply if it is equal to or more generous than the new ordinance. The sick leave law does not require employers to compensate employees for unused hours.

For further guidance on Sick Leave laws, please contact Jane Park, Restaurant Operations Administrator at 818.287.0789 or jane.park@krostcpas.com.

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