New guidance has been issued by the City of Los Angeles. As a result, we are reissuing the Alert with flagged updates to the original June 23 Alert, so there is a single self-contained document superseding the original Alert. This Alert also explains how EP helps the client track Los Angeles sick leave if the client desires EP’s assistance.

The Los Angeles City Council adopted a sick leave ordinance (“Ordinance”) this June that became effective July 1, 2016. The Ordinance exceeds benefits provided under the California state sick leave law.

The New Ordinance – What is it?
Employers will need to provide to covered employees 1 hour of paid sick leave for every 30 hours worked. Eligible employees will be able to use at least up to 48 hours of sick leave per year and bank at least up to 72 hours of unused sick leave.

When Did the Ordinance Become Operative?
July 1, 2016.

**UPDATED** Which Employees Are Covered?
Any employee who works at least 2 hours in a week within the boundaries of the City of Los Angeles is covered by the Ordinance. If met, and the client desires EP’s assistance, then EP will code either the day in question or the week in question as work inside the City for tracking purposes.

Who Is Responsible Between the Client and EP?
As the employer hiring the production workers and directing and controlling their activities, the production company is the responsible employer for compliance with the Ordinance. EP will assist in supporting your needs regarding this law.

**UPDATED** Are Union Production Worker Employees (PWEs) Excluded?

There is no exception for union PWEs governed by a collective bargaining agreement. However, the City has issued new guidance that is specific to the motion picture production industry, such that if the union or non-union employee receives at least two of the following benefits, then the employee is deemed exempt from the Ordinance:

  • Payment of a wage rate that is more than twice the City’s minimum wage rate (currently $10.50 per hour for employers with 26 or more employees who work within the City’s boundaries)
  • Additional compensation in lieu of time off
  • Additional compensation for days not worked
  • Holiday pay
  • Health insurance for employee coverage at no cost to the employee
  • Deferred compensation known as residuals

EP has preliminarily determined that the following categories of employees are less likely to meet at least two of the criteria in the exemption. These categories include:

  • Most non-union workers
  • Certain associate casting directors
  • Background performers
  • Fire Safety Officers and Fire Safety Advisors
  • LAPD and CHP

**NEW** What if my employee only spends 1 day in the City of Los Angeles within the week?

That day is covered by the Ordinance if employee works at least 2 hours that week inside the City. EP’s system will track activity in areas covered by the Ordinance, based on information supplied by the client on the time card. If client requires tracking of work location inside and outside the City within the same week, then employee will receive two paychecks – one check for work inside and one check for work outside the City. An alternative is to code the full week’s work to inside the City, which results in over-compliance, but for some clients this may be a better option depending on the situation.

How Does the Ordinance Work?

  • Start of Accrual
    Sick leave starts accruing on the later of July 1, 2016 or the first day of employment.
  • Accrual Rate
    Paid leave accrues at a rate of one hour of sick leave for every 30 hours worked and accrues even if the employee is not yet eligible to use leave.
  • Eligibility & Waiting Period
    Covered employees must work at least 30 days in a year in the City of Los Angeles to become eligible, and then may begin using accrued sick leave on the later of their 90th day of employment or July 1, 2016.
  • Minimum Use Allowance
    Eligible employees must be allowed to take at least up to 48 hours per year (double California state law’s 24-hour minimum allowance).
  • Carry-Over and Cap
    Unused leave carries over each year absent a break in employment exceeding a year, but may be capped at 72 hours (greater than California state law’s 48-hour cap).
  • Permitted Uses
    Employees can use paid sick leave for care, diagnosis, or treatment of a health condition of, or preventative care for, the employee, employee’s family member as defined under the California state sick leave law (child, parent, spouse, registered domestic partner, sibling, grandchild, grandparent) as well as any person related by blood or affinity whose close association with the employee is the equivalent of a family relationship. Paid sick leave can also be used to address the needs of an employee who is a victim of domestic violence, sexual assault, or stalking.
  • Requesting Leave
    Employees may make a verbal or written request to use sick leave, and employers may require reasonable documentation for the absence.
  • Frontloading
    Employers looking to alleviate accrual tracking have the option to supply employees the entire 48 hours at the beginning of each calendar year, year of employment or other employer-designated 12-month period. If frontloading, the Los Angeles unused sick leave hours would carry over to the following year, subject to the 72-hour cap (frontloading under California state law differs by requiring that the employer only replenish the entire 24-hour allowance at the start of each year).
  • Termination
    Employers do not have to pay unused sick leave when an employee’s employment ends, but if the employee is reemployed within a year, the employee’s ending balance is reinstated.
  • **NEW** Posting
    Employers with employees who work within the City’s boundaries must display a poster at the workplace in a conspicuous location. The Poster can be downloaded here.
Cities within the Los Angeles City Council (requires Sick Leave) Cities NOT in LA City Council
Angelino Heights
Arleta
Arlington Heights
Arts District
Atwater Village
Baldwin Hills
Baldwin Hills
Baldwin Hills/Crenshaw
Baldwin Village
Baldwin Vista
Bank District, Old
Beachwood Canyon
Bel Air, Bel-Air or Bel Air Estates
Benedict Canyon
Beverly Crest
Beverly Glen
Beverly Grove
Beverly Hills Post Office
Beverly Park
Beverlywood
Boyle Heights
Brentwood
Brentwood Circle
Brentwood Glen
Broadway-Manchester
Brookside Park
Bunker Hill
Cahuenga Pass
Canoga Park
Canterbury Knolls
Carthay
Castle Heights
Central-Alameda
Central City
Century City
Chatsworth
Chesterfield Square
Cheviot Hills
Chinatown
Civic Center
Core, Historic
Crenshaw
Crestwood Hills
Cypress Park
Del Rey
Downtown
Eagle Rock
East Gate Bel Air
East Hollywood
Echo Park
Edendale
El Sereno
Elysian Heights
Elysian Park
Elysian Valley
Encino
Exposition Park
Faircrest Heights
Fairfax
Fashion District
Filipinotown, Historic
Financial District
Florence
Flower District
Franklin Hills
Gallery Row
Garvanza
Glassell Park
Gramercy Park
Granada Hills
Green Meadows
Griffith Park
Hancock Park
Harbor City
Harbor Gateway
Harvard Heights
Harvard Park
Hermon
Highland Park
Historic Core
Hollywood
Hollywood Dell
Hollywood Hills
Hollywood Hills West
Holmby Hills
Hyde Park
Jefferson Park
Jewelry District
Kinney Heights
Koreatown
Lafayette Square
Lake Balboa
Lake View Terrace
Larchmont
Laurel Canyon
Leimert Park
Lincoln Heights
Little Armenia
Little Ethiopia
Little Tokyo
Los Angeles
Los Feliz
Manchester Square
Mandeville Canyon
Marina Peninsula
Mar Vista
Melrose Hill
Mid-City
Mid-Wilshire
Miracle Mile
Mission Hills
Montecito Heights
Monterey Hills
Mount Olympus
Mount Washington
Nichols Canyon
NoHo Arts District
North Hills
North Hollywood
Northridge
North University Park
Old Bank District
Outpost Estates
Pacific Palisades
Pacoima
Palms
Panorama City
Park La Brea
Picfair Village
Pico-Union
Platinum Triangle
Playa del Rey
Playa Vista
Porter Ranch
Rancho Park
Reseda
Reynier Village
Rose Hills
Rustic Canyon
San Pedro
Sawtelle
Shadow Hills
Sherman Oaks
Silver Lake
Skid Row
Solano Canyon
South Central, Historic
South Park
South Robertson
Spaulding Square
Studio City
Sunland
Sunset Junction
Sun Valley
Sylmar
Tarzana
Terminal Island
Thai Town
Toluca Lake
Toy District
Tujunga
University Hills
University Park
University Park, North
Valley Glen
Valley Village
Van Nuys
Venice
Vermont Knolls
Vermont-Slauson
Vermont Square
Vermont Vista
Victor Heights
Victoria Park
Village Green
Warehouse District
Warner Center
Watts
West Adams
Westchester
Westdale
Western Heights
West Hills
Westlake
West Los Angeles
Westside Village
Westwood
Westwood Village
Whitley Heights
Wholesale District
Wilmington
Wilshire Center
Wilshire Park
Windsor Square
Winnetka
Woodland Hills
Yucca Corridor
Agoura Hills
Alhambra
Arcadia
Artesia
Avalon
Azusa
Baldwin Park
Bell
Bell Gardens
Bellflower
Beverly Hills
Bradbury
Burbank
Calabasas
Carson
Cerritos
Claremont
Commerce
Compton
Covina
Cudahy
Culver City
Diamond Bar
Downey
Duarte
El Monte
El Segundo
Gardena
Glendale
Glendora
Hawaiian Gardens
Hawthorne
Hermosa Beach
Hidden Hills
Huntington Park
Industry
Inglewood
Irwindale
La Cañada Flintridge
La Habra Heights
La Mirada
La Puente
La Verne
Lakewood
Lancaster
Lawndale
Lomita
Long Beach
Lynwood
Malibu
Manhattan Beach
Maywood
Monrovia
Montebello
Monterey Park
Norwalk
Palmdale
Palos Verdes Estates
Paramount
Pasadena
Pico Rivera
Pomona
Rancho Palos Verdes
Redondo Beach
Rolling Hills
Rolling Hills Estates
Rosemead
San Dimas
San Fernando
San Gabriel
San Marino
Santa Clarita
Santa Fe Springs
Santa Monica
Sierra Madre
Signal Hill
South El Monte
South Gate
South Pasadena
Temple City
Torrance
Vernon
Walnut
West Covina
West Hollywood
Westlake Village
Whittier

For sick leave tracking questions, please contact Technology Product Manager, Kathleen Tucker, at 818.955.6249.

For legal inquiries, please contact Legal Counsel, Alan Wu, at 818.955.6055