EmploymentQuestion 1072 of 1632

Under the accrual method for paid sick leave, unused sick leave generally must:

a.Be forfeited entirely at each year-end
b.Be cashed out on every regular payday
c.Convert to stock or another benefit
d.Carry over, subject to an accrual cap

Explanation

Under the accrual method, Labor Code §246(d) carries accrued unused paid sick leave over into the following year, and §246(j) lets the employer cap total accrual at 80 hours or ten days and cap annual use at 40 hours or five days - the figures SB 616 raised in 2024. (a) is the forfeiture rule the section forbids, and it is the practice most employers had before 2015; note the contrast with the front-loading alternative in §246(e), where granting the full annual amount up front means no carryover is required, which is why some employers believe forfeiture is lawful. (b) would convert sick leave into wages, and unlike vested vacation under §227.3, unused sick leave is not paid out at all. (c) is invented.

Law Reference: Labor Code §246(d), (e), (j) (as amended by SB 616)

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