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.
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).
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|
Bank District, Old
Bel Air, Bel-Air or Bel Air Estates
Beverly Hills Post Office
East Gate Bel Air
Hollywood Hills West
Lake View Terrace
NoHo Arts District
North University Park
Old Bank District
Park La Brea
Playa del Rey
South Central, Historic
University Park, North
West Los Angeles
La Cañada Flintridge
La Habra Heights
Palos Verdes Estates
Rancho Palos Verdes
Rolling Hills Estates
Santa Fe Springs
South El Monte