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Wednesday, July 22, 2015
90 Day delay of payments on workers' compensation/Sick Leave amendments
Have you ever
said to yourself why do insurance companies on workers compensation
claims automatically pay when an employee claims a workers
Well, part of the reason is because it is very difficult to prove the
injury is not work related
but you do have the ability when filing a claim to request a 90 day
delay of payment. If you do this the company is obligated to
investigate the claim. They will be required to pay up to $10000
of medical expenses but do not have to pay temporary disability until
after the investigation.
The key here is you have to ask the insurance company to do this and
you need to file claim as soon as possible as the 90 days is from date
On July 13th the legislature passed and the Governor signed
amendments to the sick leave law.
Our friends at the California Employers Association have outlined below
the changes that have been made.
The Employer's Update
A Weekly Update For California Employers
Paid Sick Leave - AB304 Update! Read Time: Less Than 2 Minutes The rules for California's mandatory Paid Sick Leave (PSL) Law
have been amended! The Healthy Workplaces, Healthy Families Act
of 2014, which went into full effect on July 1, 2015, was
amended on July 13, 2015. AB 304 is intended to clarify this
confusing new Law. Employers who have been struggling with
understanding the original statue may find some guidance here,
but may also need to revise their policies and procedures
again. CEA will host a Paid Sick Leave
Webinar UPDATED with AB304 on 9/2/15.
Area of Clarification: Eligibility Accrual Rate Options Accrual Rates for Exempt Employees Lump Sum Employers who offer "Unlimited Leave" Reinstatement of PSL Rates of Pay Paystub Notification Notification of PSL by Employee
New Provisions: Employees must work in California for the same employer
for 30 or more days to be entitled to paid sick leave. Allows employers additional options for accrual (other than 1
hour for each 30 hours worked) provided that the accrual is on
a regular basis and the employee will have 24 hours of accrued
sick leave available by the 120th calendar day of
employment, or each 12 month period. Exempt employees are deemed to work 40 hours/workweek unless
the employee's normal workweek is less than 40 hours, in which
case the employee will accrue based on normal hours. An employer may also provide no less than 24 hours or three
days of PSL which is available to use by the 120th
calendar day of employment. The bill would permit an employer who provides unlimited sick
leave to its employees to satisfy notice requirement by
indicating "Unlimited" on the employee's itemized
wage statement. Employers are not required to reinstate accrued PSL to an
employee rehired within one year of separation from employment
if they were paid out at the time of termination, resignation or
separation. Nonexempt employees (2 options): 1) Calculate
paid sick time rate in same manner as the regular rate of pay
for the workweek (i.e. the rate used to calculate overtime),
regardless of whether the employee works overtime, or 2) Divide
the total wage by total hours worked in the full pay period of
the prior 90 days of employment. Exempt employees: Calculate rate of pay in the
same manner as the employer calculates wages for other forms of
paid leave time. Employers must provide an employee with written notice showing
the amount of PSL, or paid time off (PTO) in lieu of sick
leave, available for use on the employee's itemized wage
statement or in a separate writing with each payment of wages.
Employers do not have to show time used. An employer is not obligated to inquire into or record the
purposes for which an employee uses paid leave or paid time
off. (DLSE actually takes the position that employers MAY NOT
inquire about this.)
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