Starting January 1, 2024, California’s Paid Sick Leave is increasing to five days or 40 hours. Employers can opt for the traditional accrual method—1 hour of paid sick leave for every 30 hours worked—or choose alternative accrual methods. The key is to ensure that employees have accrued 5 days or 40 hours of paid sick leave by the 200th calendar day of their employment each year, calendar year, or 12-month period.

Previously, the accrued paid sick leave for employees could be capped at 48 hours or 6 days, whichever was greater. Due to SB 616, the cap has now increased to the greater of 80 hours or 10 days. Once an employee reaches this cap, they temporarily stop accruing until their accrued amount drops below the cap. If an employer decides to grant 5 days or 40 hours of paid sick leave upfront, there’s no requirement for carryover.