Effective Monday, July 11, 2016
Employees who perform at least two hours of work (within the geographic boundaries of the City of San Diego) in one or more calendar weeks of the year must be paid at least $10.50 per hour and must accrue one hour of paid sick time for every 30 hours worked within the City of San Diego.
As passed, the Ordinance provides that while employers can cap use of sick pay to 40 hours within a benefit year, sick pay must continue to accrue indefinitely. Additionally, the Ordinance currently does not allow for a front-loading or deposit method of providing sick pay. Both of these issues present challenges for employers as they attempt to align their current paid time off and sick pay policies with new San Diego requirements.
Fortunately, the San Diego City Council is attempting to address these challenges and, on July 11, 2016, approved an Implementing Ordinance at a first reading that will provide much needed clarification and flexibility for employers with San Diego employees. If the implementing Ordinance becomes effective, it provides the following key changes:
Finally, the proposed Implementing Ordinance establishes strong anti-retaliation provisions, provides increased damages and civil penalties and outlines enforcement procedures. The Ordinance is now effective, which means immediate compliance steps need to be taken, including ensuring all covered San Diego employees receive a minimum wage of $10.50 per hour as of July 11, 2016. However, since the law is in flux on key sick pay issues such as caps and accrual rates and favorable employer changes are anticipated, it would be smart for covered employers to consult with legal counsel to craft a customized compliance solution.
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