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California COVID Paid Sick Leave Returns

January 27, 2022 | Employment Law

California companies with more than 25 employees will once again be required to provide up to two weeks of supplemental paid sick leave for workers who are recovering from COVID or caring for sick family members.

California law requires employers to offer a minimum of three paid sick days a year. When the pandemic hit, the state raised that requirement, exploiting state and federal laws and tax credits to add up to 80 hours of paid sick leave for workers who were infected or were caring for infected relatives. That expansion lapsed on September 30, 2021. 

Gov. Newsom and state leaders announced the new framework Tuesday. The state legislature is expected to fast-track a bill to turn the agreement into law. If it is approved, the paid leave requirement would apply to eligible absences between Jan. 1 and Sept. 30. 

Early budget actions will also include restoring business tax credits, including research and development credits and net operating losses, that were limited during the COVID-19 Recession; tax relief for recipients of federal relief grants for restaurants and shuttered venues; and additional funding for the Small Business Covid-19 Relief Grant Program. The framework includes significant funding to bolster testing capacity, accelerate vaccination and booster efforts, support frontline workers, strengthen the health care system, and battle misinformation.