Though you may still be on a sugar high from Halloween, the new year is fast approaching, and with it, the onset of several new California employment laws. Employers should prepare now by updating their handbooks for 2024. While there are a myriad of employment laws to be aware of, we outline the most pertinent changes California employers should make to their handbooks, below:

Update Paid Sick Leave Policies for Higher Accrual Requirements, Carryovers, and Caps

Change Your Policy from 24 hours to 40 hours

If you are not subject to a local paid sick leave law, you should update your paid sick leave policy to reflect that employees must now receive five days or 40 hours of paid sick leave per year. Employers may still elect the lump sum or the accrual method. For employers with an accrual policy, employees still accrue PSL at a rate of 1 hour for every 30 hours worked. If using an alternative accrual method (anything other than 1 hour accrued for every 30 hours worked), then employees must accrue no less than five days or 40 hours by the 200^th calendar day of the employment, each calendar year, or in each 12-month period [together with the existing requirement that they accrue 3 days or 24 hours by the 120^th day of work].

Implement New Carryover Requirements & Use Caps

If using the lump-sum method, employers need not allow for any carryover, if the full amount of leave is received at the beginning of each year of employment, calendar year, or 12-month period. If using the accrual method (or any alternative accrual method), employers must allow employees to carryover (but may cap accrual) at 10 days (or 80 hours).

An employer can limit an employee’s use of accrued paid sick leave to 40 hours or five days in each year of employment, calendar year, or 12-month period.

Reminder

Also ensure that when issuing 2810.5 Wage Theft Notice to Employee to new hires that you accurately reflect the new amount of paid sick leave.

Ensure No References to Non-Compete or Non-Solicitation Clauses

Remove noncompete provisions from your handbook, including non-solicitation of customer or employees provisions. Also, any employer that required a current or former employee to sign a noncompete who was employed after January 1, 2022, must notify each current or former employee in writing that the noncompete agreement they entered into is void no later than January 14, 2024. Please beware, employees who signed handbook acknowledgments with noncompete agreements lawful in other states before moving to California must sign a new acknowledgment that acknowledges a handbook with no noncompete agreements.