California Extends its COVID-19 Supplemental Paid Sick Leave Law to December 31, 2022

On September 29, 2022, California Governor Gavin Newsom signed Assembly Bill 152, extending California’s 2022 COVID-19 Supplemental Paid Sick Leave (SPSL) law to December 31, 2022. This new law is effective immediately.

AB 152 does not provide additional SPSL hours for employees. Instead, employees who have not used all available SPSL hours under California’s 2022 COVID-19 SPSL law, now have until December 31, 2022 to use the SPSL hours. Many of the provisions of existing SPSL law still apply i.e., the qualifying reasons for which employees may use SPSL; the definitions; the methods for calculating the amount of leave and rate of pay for leave; the rules for how SPSL interacts with other leaves, and the posting and wage statement requirements.

AB 152 does come with key changes that all employers must implement immediately:

• Under existing law, employers can require an employee who requests SPSL for their own illness to take a test (at the employer’s expense) on day five after the initial positive test and to provide documentation of the test results. In situations where the second test is positive, AB 152 now allows employers to require the employee to take a third test (again at the employer’s expense), within no less than 24 hours. If the employee does not provide documentation of the day five test result or does not submit to the additional test at the employer’s request, the employer is not required to provide additional SPSL.

• AB 152 establishes the California Small Business and Nonprofit COVID-19 Supplemental Paid Sick Leave Relief Grant Program within the Governor’s Office of Business and Economic Development (GO-Biz). The program offers eligible small businesses and nonprofit organizations grant money for reimbursement of SPSL provided between January 1, 2022 and December 31, 2022, up to a maximum of $50,000 per qualifying employer.

1. 1. To qualify for relief under the program, an applicant business or nonprofit must meet the following criteria:

      1. Must be “C” or “S” corporation, cooperative, limited liability company, partnership, limited partnership, or registered 501(c)(3), 501(c)(6), or 501(c)(19);

      2. Must have begun operating before June 1, 2021;

      3. Must be currently active and operating;

      4. Must have 26 to 49 employees and provide payroll data and an affidavit, signed under penalty of perjury, attesting to that fact;

      5. Must have provided SPSL pursuant to the requirements of Labor Code sections 248.6 and 248.7 (which govern SPSL between January 1, 2022 and December 31, 2022);

      6. Must provide certain organizing documents (i.e., Articles of Incorporation, Certificate of Organization, Fictitious Name Registration, Government-Issued Business License).

   2. Grant money will only be awarded for reimbursement of SPSL provided between January 1, 2022 and December 31, 2022.

   3. Eligible businesses and non-profits must provide proof of employee payroll records as verification to receive such grant money.

   4. Certain businesses are exempt, including businesses or nonprofits without a physical presence in the state, nonprofit businesses not registered as a 501(c)(3), 501(c)(6), or 501(c)(19), and government entities, other than Native American tribes, or elected official offices. For a full list of exemptions, please review Government Code section 12100.965(h)(2).

   5. The Program shall remain in effect until January 1, 2024.

Key Takeaways:

Employers are encouraged to review their SPSL policies immediately and revise them to comply with AB 152. The employment attorneys at Lagasse Branch Bell + Kinkead are happy to answer your questions regarding AB 152 and to ensure your company is prepared to comply. We can draft applicable policies and procedures or revise current policies to ensure compliance with the new law.