EmploymentQuestion 566 of 690

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 following year, subject to the accrual cap
b.Unused balances must be cashed out at year-end like vacation
c.Accrued sick leave is forfeited at year-end
d.The employer may unilaterally reset the balance to zero on January 1

Explanation

Section 246(d) requires accrued paid sick days to carry over to the following year of employment, subject only to the employer's permissible accrual cap (typically 80 hours/10 days). Unlike vacation, sick leave does NOT have to be paid out at termination.

Law Reference: Labor Code §246(d)

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