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Agenda Item #3.F
DATE: July 20, 2015
TO: Honorable Mayor and Members of the City Council hrough City Manager
FROM: Dianne Dinsmore, Human Resources Director
SUBJECT: Resolution Adopting the City of Petaluma Paid Sick Leave Policy Implementing
the Healthy Workplace Healthy Family Act of 2014
RECOMMENDATION
It is recommended that the City Council adopt the attached Resolution Adopting the City of
Petaluma Paid Sick Leave Policy Implementing Assembly Bill 1522, Healthy Workplace
Healthy Family Act of 2014.
BACKGROUND
On September 10, 2014, Governor Brown signed into law Assembly Bill 1522, the Healthy
Workplace Healthy Family Act of 2014, which requires all employees earn at least one hour of
sick leave for every thirty hours worked. This action adopts a policy implementing the new law.
DISCUSSION
The current legislation provides that an employee who, on or after July 1, 2015, works in
California for 30 or more days within a year from the beginning of employment, is entitled to
paid sick leave. Employees, including part-time and temporary employees, will earn at least one
hour of paid leave for every 30 hours worked. Accrual begins on the first day of employment or
July 1, 2015, whichever is later.
An employer may limit the amount of paid sick leave an employee can use in one year to 24
hours or three days. Accrued paid sick leave may be carried over to the next year, but it may be
capped at 48 hours or six days.
Employees covered by a qualifying collective bargaining agreement are exempted from the
provisions of this law. In addition, our Living Wage positions already accrue at a higher rate than
that required by the new law.
To comply with the Healthy Workplace Healthy Family Act of 2014, the City must
• Display a poster on paid sick leave where employees can read it easily. This posting is
already in place.
• Provide written notice to employees with sick leave rights at the time of hire. Human
Resources has also prepared notification for current employees who qualify under the
new Sick Leave Policy to inform them of their rights.
• Provide for accrual of one hour for every 30 hours worked and allow use of at least 24
hours, or 3 days, or provide at least 24 hours, or 3 days, at the beginning of a 12 month
period of paid sick leave for each eligible employee to use per year.
• Allow eligible employees to use accrued paid sick leave upon reasonable request.
• Show how many days of sick leave an employee has available. This must be on a pay
stub or a document issued the same day as a paycheck. Payroll has begun accruing leave
as required.
• Keep records showing how many hours have been earned and used for three years.
Payroll already maintains these records. No additional implementation is required.
The Healthy Workplace Healthy Family Act of 2014 signed by Governor Brown is effective
July .1, 2015. As adopted, AB 1522 includes retired annuitants. However, under PERS law,
retired annuitants may not be paid any other compensation or benefits in addition to the hourly
pay rate. Clean up legislation, AB 304, is pending and is expected to correct this discrepancy as
well as provide clarity on other points of the law. AB 304 was recently amended to deem it
urgency legislation to take effect immediately upon the Governor's signature. Human Resources
hoped the revised legislation would be signed prior to implementing a City of Petaluma Paid
Sick Leave Policy. However, at this time, it is unknown if or when the legislation will be revised.
It is recommended that the City:
1. Utilize the accrual method that provides one hour of paid sick leave for every 30 hours
worked, and
2. Allow use of 24 hours, or 3 days, of accrued paid sick leave per year after 90 days of
employment, and
3. Cap maximum accrual of paid sick leave under this policy at 48 hours, or six days.
The attached Policy reflects these recommendations. Therefore, it is recommended that the City
Council adopt the attached City of Petaluma Paid Sick Leave Policy. A revised policy will be
brought to the Council when new legislation is passed.
FINANCIAL IMPACTS
The cost of implementing the provisions of AB 1522 will vary based on the hourly rate and
number of hours an employee covered by the Policy works.
In FY 2014, employees who would be eligible to accrue sick leave under the new Policy worked
approximately 22,700 hours. Sick leave accrual at the rate of one hour -for every thirty hours
worked translates to just over 750 hours. If the average rate of pay is $20 per hour, the cost to the
City would be approximately $15,000 if each eligible employee uses all sick leave hours
available to him/her.
ATTACHMENTS
1. Resolution
2. City of Petaluma Paid Sick Leave Policy attached as Exhibit A to Resolution
ATTACHMENT 1
Resolution No. 2015 -XXX N.C.S.
Of the City of Petaluma, California
RESOLUTION ADOPTING THE CITY OF PETALUMA PAID SICK LEAVE POLICY
IMPLEMENTING THE HEALTHY WORKPLACE HEALTHY FAMILY ACT OF 2014
WHEREAS, California Governor Brown signed into law Assembly Bill 1522 Healthy
Workplace Healthy Family Act of 2014, which requires all employees earn at least one hour of
sick leave for every thirty hours worked effective July 1, 2015; and
'WHEREAS, the City of Petaluma requires a policy to implement the Healthy Workplace
Healthy Family Act of 2014
NOW, THEREFORE, BE IT RESOLVED that the City Council adopts the City of
Petaluma Paid Sick Leave Policy attached hereto at Exhibit A.
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EXHIBIT A
City of Petaluma
Healthy Workplace Healthy Family Act
Paid Sick Leave Policy
Purpose
As required by the Healthy Workplace Healthy Family Act of 2014 (Cal. Labor Code, § 245, et
seq.), effective July 1, 2015, employees who have worked 30 or more days in California within a
year of their employment with the City or at the time this policy becomes effective will begin to
accrue paid sick leave. Paid sick leave provided under this policy is not applicable to employees
exempted from the Healthy Workplace Healthy Family Act or covered by a Memorandum of
Understanding, Compensation Plan, or other policy or contract that affords greater paid sick
leave than provided herein.
Policy
Eligible employees will accrue one hour of paid sick leave for every 30 hours worked up to a
maximum accrual of 48 hours, or six days, per calendar year. After completing 90 days of
employment, an eligible employee may begin to use paid sick leave under this policy in
minimum increments of one hour, up to a maximum of 24 hours, or three days, per calendar
year. Unused paid sick leave accrued under this policy will carry over each year up to a
maximum accrual of 48 hours or six days.
Paid sick leave under this policy may be used in connection with the diagnosis, care or treatment
of an existing health condition for, or the preventive care of, an employee or an employee's
immediate family member. "Family member" for purposes of this policy includes spouses,
registered domestic partners, children (regardless of age), parents (including step - parents and
parents -in -law), grandparents and siblings. Paid sick leave under this policy may also be used for
employees who are the victims of domestic violence, sexual assault or stalking.
Employees requesting to use paid sick leave under this policy should provide as much advanced
notice as reasonable for the circumstances to their immediate supervisor.
Unused paid sick leave under this policy is not paid out at the time of separation from
employment. However, employees who separate, and then are re- employed with the City within
one year of the date of separation will have their unused paid sick leave accrued under this policy
restored. An employee appointed to a regular position directly from a position covered by this
policy shall retain unused paid sick leave accrued under this policy. Except as required by law or
other City policy, paid sick leave under this policy shall run concurrently with leave taken under
other applicable policies as well as under local, state or federal law, including leave taken
pursuant to the California Family Rights Act (CFRA) or the Family and Medical Leave Act
(FMLA).
For more information regarding leave under this policy, contact the Human Resources
Department.
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