California Implements Extended Supplemental Sick Leave

On Tuesday a deal was struck between Gov. Newsom and California lawmakers to provide a new Supplemental Sick Leave similar to the one that expired on September 30. Those who follow my webinars may recall I predicted this would occur in delayed fashion after the 9/30 expiration (e.g. the March 2021 retroactive extension), but this was well beyond any predicted delay. Although not yet in final form, here are the components we expect:

• Applies to employers with 26+ employees;
• Provides up to 2 weeks (80 hours) of paid leave to care for yourself or family with COVID and other qualifying reasons (e.g. children school closures) as the previous leave permitted;
• The first 40 hours are flexible, but to be eligible for the additional 40, proof of a positive test will be required;
• Potential tax credits for employers to absorb the financial burden;
• Retroactive to 1/1/22 - not 9/30/21;
• Expires 9/30/22.