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Navigating 2024’s California Pay and Leave Updates

As 2024 is just around the corner, it’s time to get a handle on some key changes in pay and labor laws heading our way. We’re looking at an uptick in the minimum wage and a shake-up in sick leave policies. Understanding these updates is essential not just for staying compliant, but also for creating a great place to work.

Minimum Wage Increase 

Starting January 2024, the minimum wage in California is getting a bump up from $15.50 to $16.00 per hour. This sets a new floor for wages across the state (but remember: Some areas or industries might be a step ahead with even higher rates). Need to make updates? Give your payroll specialist a call before you run your first payroll in 2024.

So What? This boost in minimum wage is more than just a number change—it’s a game-changer for your business economics. It’s a necessary moment to take a fresh look at your budgets and figure out how this increase plays into your overall expenses. 

Expanded Sick Leave Policies 

Big news here too: Starting January 1, 2024, you’ll need to offer at least five paid sick days or 40 hours of leave, up from the previous three days or 24 hours. Whether your policy is front-load or accrual-based, adjustments are in order. To get everything squared away, touch base with your payroll specialist so your system reflects these new rules.

So What? This isn’t just about ticking boxes for compliance. The way you handle sick leave can really shape your company culture and how your team sees you. More sick leave might mean rejigging your staffing plans, but it’s also a golden opportunity to show your team you care about their health and well-being. A little empathy goes a long way in building trust and loyalty.

All-Inclusive Paid Time Off (PTO) Policies 

For those with a PTO policy that covers everything, make sure your sick leave policies are updated with these new requirements. You’ll want to ensure your team gets their five days/40 hours of paid leave within the first six months on the job. 

So What? If you have an all-in-one PTO policy, it’s time to do a bit of homework. Ensure your policy is not just meeting the new sick leave rules but also reflecting what you stand for as a company. Are you all about work-life balance, employee wellness, or maybe standing out as an employer of choice? Your PTO policy is a powerful tool to show it.

Frequently Asked Questions 

Let’s clear up a few things with these FAQs straight from the California Department of Industrial Relations:

1. How Much Paid Sick Leave Am I Entitled to Per Year? From 2024, you’re looking at providing at least 40 hours or five days of paid sick leave annually, stepping up from the previous 24 hours or three days.
2. What Does 40 Hours or Five Days Mean? Starting next year, you need to let your employees use a minimum of five days or 40 hours of sick leave. This is all about flexibility and fairness, depending on their usual workday hours and the type of plan you offer (front-load vs. accrual-based).
3. What if a Local Ordinance Requires More Paid Sick Leave? If your local laws are more generous, you gotta go with those. 

Got questions or need a hand with these changes? We’re all ears and ready to help. Just give us a shout—we’re here to help you sail smoothly into 2024.

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