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On January 25, 2021, Governor Newsom and California legislators announced an agreement on a “framework” to require certain employers to provide COVID-19 supplemental sick leave to workers through September 30, 2022. The legislature is expected to fast-track a bill to make the agreement law in the next few weeks. California’s previous COVID-19 supplemental paid sick leave law expired on September 30, 2021. Still, given the surge of COVID-19 cases, especially the Omicron variant, Governor Newsom and legislators agree that “extending sick leave to frontline workers with COVID-19 and providing support for California businesses. . . can help protect the health of our workforce, while also ensuring that businesses and our economy are able to thrive.”

Although specific details of the new law have not been finalized, Governor Newsom and legislators have indicated that the supplemental paid sick leave requirement would apply to businesses with more than 25 employees. Full-time employees would be entitled to 40 hours of supplemental paid leave for COVID-19 related absences between January 1 and September 30, 2022. An additional 40 hours of paid leave would be available to full-time employees who provide a positive COVID-19 test result for themselves or a covered family member.

The agreement is one of several “early budget actions” which include increased funding for the Small Business COVID-19 Grant Relief Program, increased testing capacity and vaccine and booster campaigns, and a restoration of business state tax credits which were limited during the pandemic.

While this COVID-19 supplemental paid sick leave is not technically law yet, once it is finalized, it is intended to be retroactive to January 1, 2022. Employers are encouraged to keep accurate records of employees’ time off for COVID-19 reasons, so employers are prepared when COVID-19 supplemental paid sick leave becomes law. The California Legal Services team at Employers Council will apprise our members of any developments of this new law. Please contact us at CAinfo@employerscouncil.org if you have any questions.