California’s 2026 Paid Sick Leave Law: What You Need to Know

For business owners in California, maintaining compliance with labor laws is essential for avoiding potential penalties and ensuring proper business operations. Two critical regulations require careful attention: the state’s Paid Sick Leave law and the annual minimum wage increase. As of January 1, 2026, California’s minimum wage will increase to $16.90 per hour. Concurrently, employers must continue to comply with the paid sick leave law, which has undergone significant updates in recent years.

California’s paid sick leave benefit requires employers to provide employees with paid time off for health-related needs, including care for family members. Beginning in 2026, employers must provide a minimum of 40 hours or five days of paid sick leave annually. The law establishes specific requirements regarding qualifying reasons for leave, accrual methods, and usage procedures.

This comprehensive guide provides the essential provisions of California’s 2026 paid sick leave law to ensure your policies meet all compliance requirements.

Expanded Reasons for Taking Paid Sick Leave

The fundamental purpose of the benefit remains consistent: employees may utilize this time for personal illness, medical appointments, or to provide care for family members. The law establishes a comprehensive list of qualifying reasons. Employees may use paid sick leave for the following purposes:

• Preventative care for themselves or a family member.

• Situations involving domestic violence, sexual assault, or stalking concerning the employee or a family member.

• The diagnosis, care, or treatment of an existing health condition for themselves or a family member.

• For agricultural workers, leave may be used for absences due to hazardous or unhealthy conditions, such as extreme heat or smoke.

• Attending judicial proceedings as a victim of certain crimes or for a family member (effective January 1, 2026, per AB 406).

• Jury duty and appearing as a witness (effective October 1, 2025).

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

• Preventative care for themselves or a family member.

• Situations involving domestic violence, sexual assault, or stalking concerning the employee or a family member.

• The diagnosis, care, or treatment of an existing health condition for themselves or a family member.

• For agricultural workers, leave may be used for absences due to hazardous or unhealthy conditions, such as extreme heat or smoke.

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

Key Provisions for 2026

Understanding the operational requirements of the law is essential for maintaining compliance.

Minimum Leave Requirements

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

Accrual and Availability Methods

The law provides flexibility in how employers may provide this leave. Businesses may select one of two primary methods:

1. Lump Sum (Frontloading): Employers may provide the full 40 hours or five days of sick leave to employees at the beginning of the 12-month period (e.g., January 1st). When using this method and providing the entire amount upfront, carryover of unused sick leave to the following year is not required.

1. Accrual: Employees earn sick leave over time. The standard accrual rate is one hour of paid sick leave for every 30 hours worked. When using an accrual system, employers must permit employees to carry over unused time. The total accrual cap may be set at 80 hours or 10 days.

Rules for New Hires

The complete amount of leave is not required to be immediately available for new employees. The law establishes specific milestones for availability:

• Employees must be able to use accrued sick leave beginning on the 90th day of employment.

• The full 40 hours (or five days) must be available for use by the 200th day of employment.

These represent minimum requirements; employers may choose to provide leave availability sooner.

Employee and Employer Obligations

The law establishes clear responsibilities for both employees and employers to ensure proper implementation.

Notice Requirements

• For Employers: Written notice of paid sick leave rights must be provided to non-exempt employees upon hiring. Additionally, a poster containing this information must be displayed in a visible workplace location.

• Mandatory “Know Your Rights” Notice (SB 294): By February 1, 2026, employers are required to give each employee a standalone “Know Your Rights” notice that details their rights, including paid sick leave, immigration protections, workers’ compensation, and union rights. The Labor Commissioner will provide a template by January 1, 2026, and employers must provide this notice upon hire, to current employees, and annually thereafter. Employers must also retain records of compliance for three years.

• For Employees: When leave is planned, such as for scheduled medical appointments, employees must provide advance notice. For unexpected absences, employees must provide notification “as soon as practicable.”

Employer Restrictions

The law establishes important limitations on employer requirements. Employers generally cannot deny paid sick leave due to the absence of a doctor’s note or other certification. Additionally, requiring an employee to find a replacement to cover their shift as a condition of taking leave is not permitted.

How to Ensure Your Business Maintains Compliance

Implementing the appropriate measures now will help prevent compliance issues and continue to support employee well-being.

• Review and Update Policies: Revise employee handbooks and sick leave policies to reflect the 40-hour requirement and the expanded reasons for use, including crime victim leave (AB 406) and jury duty/subpoena leave (SB 294).

• Verify Integrated Policies: For businesses using consolidated Paid Time Off (PTO) policies, ensure these meet or exceed the minimum requirements of California’s sick leave law.

• Update Payroll Systems: Modify payroll and timekeeping systems to accurately track accrual, usage, and availability of sick leave, particularly for new hires.

• Distribute ‘Know Your Rights’ Notice: Provide employees with the new standalone “Know Your Rights” notice by February 1, 2026, and ensure ongoing distribution at hire and annually thereafter.

• Train Staff: Educate HR and management on the expanded leave rights and confidentiality requirements under the updated law.

• Communicate Policy Changes: Inform employees of updated policies. This ensures transparency and confirms that all parties understand their rights and responsibilities.

• Display Required Poster: Monitor for the updated Paid Sick Leave poster from the California Department of Industrial Relations and display it as required by law.

Managing the complexities of California’s labor laws requires careful attention to detail and ongoing vigilance. By understanding these regulations and implementing proper business procedures, you can maintain compliance while supporting the health and welfare of your workforce.

For questions or guidance on updating your policies, HR Ledger provides comprehensive support. Our experienced team assists businesses in navigating these changes and ensuring alignment with all updated requirements. Maintain your compliance standards—contact HR Ledger today for professional assistance.