California’s 2025 Paid Sick Leave Law: What You Need to Know

For business owners in California, staying current with labor laws is essential for maintaining compliance and avoiding potential fines. One critical regulation to monitor is the state’s Paid Sick Leave law. Originally introduced in 2015 and updated in 2024, the law is evolving again in 2025 with important changes that will impact your business operations.

California’s paid sick leave benefit allows employees to take paid time off to care for their own health or the health of a family member. As we head into 2025, employers must provide at least 40 hours or five days of paid sick leave annually. The upcoming changes expand upon the reasons for taking leave and clarify rules around accrual and usage.

This guide will walk you through the key provisions of California’s 2025 paid sick leave law so you can make the necessary adjustments to your policies.

Expanded Reasons for Taking Paid Sick Leave

The core of the benefit remains the same: employees can use this time for their own illness, medical appointments, or to care for a family member. However, the updates expand the list of qualifying reasons. Employees can now use paid sick leave for time off related to:

• ol]:!pb-0 [&>ol]:!pt-0 [&>ul]:!pb-0 [&>ul]:!pt-0″ dir=”ltr” value=”2″>Situations involving domestic violence, sexual assault, or stalking concerning the employee or a family member.
• ol]:!pb-0 [&>ol]:!pt-0 [&>ul]:!pb-0 [&>ul]:!pt-0″ dir=”ltr” value=”4″>For agricultural workers, leave can be used for absences due to dangerous or unhealthy conditions, such as extreme heat or smoke.

The definition of a “family member” is broad and includes a child, parent, spouse, registered domestic partner, grandparent, grandchild, or sibling. Additionally, an employee can designate one other individual for whom they can use sick leave. Employers have the option to limit an employee to one such designated person per 12-month period.

Key Provisions for 2025

Understanding the mechanics of the law is crucial for compliance.

Minimum Leave Requirements

At a minimum, you must provide eligible employees with 40 hours or five days of paid sick leave per 12-month period.

Accrual and Availability Methods

You have flexibility in how you provide this leave. Businesses can choose one of two primary methods:

1. Lump Sum (Frontloading): You can grant the full 40 hours or five days of sick leave to employees at the beginning of the 12-month period (e.g., January 1st). If you use this method and provide the entire amount upfront, you are not required to carry over unused sick leave to the next year.
2. Accrual: Employees can earn sick leave over time. The standard accrual rate is one hour of paid sick leave for every 30 hours worked. If you use an accrual system, you must allow employees to carry over unused time. The total accrual cap can be set at 80 hours or 10 days.

Rules for New Hires

The full amount of leave doesn’t need to be available immediately for new employees. The law sets specific milestones for availability:

• ol]:!pb-0 [&>ol]:!pt-0 [&>ul]:!pb-0 [&>ul]:!pt-0″ dir=”ltr” value=”2″>The full 40 hours (or five days) must be available for use by the 200th day of employment.

While these are the minimum requirements, employers can choose to offer the leave sooner.

Employee and Employer Obligations

The law outlines responsibilities for both employees and employers to ensure the process runs smoothly.

Notice Requirements

• For Employers: You are required to provide non-exempt employees with a written notice of their paid sick leave rights when they are hired. You must also display a poster with this information in a visible place at your workplace.
• For Employees: When leave is planned, such as for a scheduled doctor’s visit, employees should provide you with advance notice. For unexpected absences, employees must notify you “as soon as practicable.”

Employer Restrictions

A significant aspect of the law is the limitation on employer restrictions. You generally cannot deny paid sick leave because an employee did not provide a doctor’s note or other certification. You also cannot require an employee to find a replacement to cover their shift as a condition of taking leave.

How to Ensure Your Business is Compliant

Taking the right steps now can help you avoid compliance issues and continue to support your employees’ well-being.

• Review and Revise Policies: Update your employee handbooks and sick leave policies to reflect the 40-hour requirement and the expanded reasons for use.
• Check Integrated Policies: If you use a consolidated Paid Time Off (PTO) policy, ensure it meets or exceeds the minimum requirements of California’s sick leave law.
• Update Your Payroll System: Adjust your payroll and timekeeping systems to correctly track accrual, usage, and availability of sick leave, especially for new hires.
• Communicate with Your Team: Inform your employees of the updated policies before the new year begins. This fosters transparency and ensures everyone understands their rights and responsibilities.
• Display the New Poster: Be on the lookout for the updated Paid Sick Leave poster from the California Department of Industrial Relations and display it as required.

Navigating the complexities of California’s labor laws can be challenging. By understanding these new regulations and preparing your business, you can ensure you remain compliant while supporting the health and morale of your team.

If you have questions or need guidance on updating your policies, HR Ledger is here to help. Our team can help you navigate these changes and ensure your business aligns with all updated requirements. Don’t wait to get compliant—contact HR Ledger today for assistance.