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Governor Gavin Newsom recently signed AB 152 into law and extended California’s COVID-19 Supplemental Paid Sick Leave (“SPSL”) through the end of 2022. Passed in February 2022, SPSL provides California employees with up to eighty (80) hours of paid leave for COVID-19 related reasons. While the law was set to expire on September 30, 2022, the paid leave will now remain in effect until at least December 31, 2022.
We explained the requirements of California’s SPSL in detail in our previous issue of Compliance Matters. AB 152 keeps the previous SPSL completely intact except for the following notable changes:
Financial Relief for Small Businesses & Non-Profits. The new law establishes the California Small Business and Nonprofit COVID-19 Relief Grant Program for the purpose of reimbursing businesses for up to $50,000 of SPSL costs. Businesses are eligible for reimbursement if they satisfy the following requirements:
- Incorporated as a C corporation, S corporation, cooperative, limited liability company, partnership, limited partnership, or registered as a 501(c)(3), 501(c)(6), or 501(c)(19);
- Began operations before June 1, 2021;
- Are currently in operation; and
- Have between 26 and 49 employees (with payroll data and a signed affidavit as proof).
COVID-19 Testing. There are two forty-hour (40) buckets of SPSL available to California employees. The first bucket can be used for a variety of reasons but the second bucket can only be used when either the employee or their family member tests positive for COVID-19. Under the previous version of the law, an employer could require an employee using the second bucket of SPSL to submit proof of a positive COVID-19 test and deny any additional SPSL if they refuse to do so. Now, employers can also require the employee to submit a second COVID-19 test at least twenty-four (24) hours after the first test and deny additional SPSL for refusing to do so.
This extension does not grant employees a new bucket of time. Rather, it simply extends the application of SPSL.
California employers must continue to implement their COVID-19 SPSL policies until at least December 31, 2022. Eligible employers should also begin gathering the necessary documentation to take advantage of the financial assistance being offered by the California Small Business and Nonprofit COVID-19 Relief Program.
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