Update on San Diego Minimum Wage and Paid Sick Leave
On July 11, 2016, the results of San Diego’s June election were certified, meaning that the minimum wage and paid sick leave ordinance that was approved by San Diego voters on the June ballot officially took effect on Monday. Our prior post on this new ordinance is here. If you are not already in compliance, you must begin compliance with both the minimum wage increase and the paid sick leave provisions this week. The City has released a FAQ on the new ordinance, available here. San Diego employers should also be aware that the San Diego City Council is already making changes to the paid sick leave requirements. The City is doing so pursuant to a provision in the ordinance that requires the City to create and issue an “implementing” ordinance. Under that implementation authority, the City has determined that it can also revise/clarify the paid sick leave requirements. The City has proposed an implementation ordinance that includes some significant changes to the paid sick leave provisions of the original ordinance. The most significant changes are (1) to allow employers to impose a cap of 80 hours on accrual of paid sick leave; and (2) to allow employers the option of frontloading paid sick leave (instead of using the accrual method) of at least 40 hours per year (regardless of F/T, P/T or temporary status). A copy of the proposed implementing ordinance is available here. It is also being reported by some that the City is considering an additional revision that provide an exemption for employees covered by collective bargaining agreements (similar to other local paid sick leave ordinances), but this is not reflected in the currently proposed implementing ordinance. As such, it is possible that there will be further revisions before the implementing ordinance ultimately is approved and issued. It is currently anticipated that an implementing ordinance will be issued in mid-August.
It appears very likely that the revisions to allow a cap on accrual and the option of frontloading sick leave will ultimately be approved. For now, however, the provisions of the original ordinance remain in effect. We will keep you posted as to further developments.