EmploymentQuestion 566 of 1632

An employee accrues paid sick leave under the statutory method, but does not use any of it by the end of the year. Under Labor Code §246(d), what must happen?

a.Accrued, unused sick leave carries over to the next year
b.Unused hours must be cashed out at year-end, as vacation must be
c.Hours above 40 are forfeited, since use is capped at 40 a year
d.The balance may be reset to zero on January 1 under the 80-hour cap

Explanation

Labor Code §246(d) says accrued paid sick days carry over to the following year of employment. What an employer may cap is USE - 40 hours or five days a year, in the same subdivision - while §246(j) lets total accrual stop at 80 hours or 10 days. Neither cap destroys anything: hours above the annual use limit stay on the books, and the accrual ceiling merely pauses further accrual, so a January 1 reset to zero is not authorised. Sick leave is also not vacation: the statute does not require the balance to be cashed out at year-end, or paid at all on separation.

Law Reference: Labor Code §246(d); §246(j)

This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →

Practice all 1632 questions free — no signup required.

Own the complete CSLB Law & Business guide — PDF + EPUB, $24.99 →

Related questions on this topic

Last reviewed: · editorial process

PrepPass team · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)
Report