The new mandatory 3 days of paid sick leave provided per year that is now required of all employers in this state (also referred to as CalSick Leave) is not as straight forward as it may seem or at least should be. After reading through the CalChamber articles and webinars it is far more complex than you would think. Instead of an employee calling in sick and you pay them for the 8 hours of sick time based on their regular hourly rate and having the whole thing be simple; California regulators of course threw in a twist, in fact a few twists. The rate of pay for the 8 sick hours could be at a higher rate than the employee’s regular hourly rate. There are two methods to calculate nonexempt employee sick pay.
Method #1 – Employers have to take all hours worked over the last ninety days (if you offer only the minimum of 3 days) excluding overtime and divide that by the employee’s total wages. If you offer more than the minimum 3 days then you have to use more than 90-days to calculate the hourly rate and the rate would depend on how many days each employer offers. Read more