Understanding California Leave Laws: A Guide for Employers to Stay Compliant

Navigating California’s complex leave laws can feel overwhelming for employers, especially with overlapping requirements and legislative updates. From pregnancy leave to paid sick leave and bereavement policies, understanding which laws apply, when, and how to properly document and communicate them is critical to avoiding compliance pitfalls. In this blog, we’ll break down the key components of California’s leave laws and provide examples of common scenarios to help employers of all sizes stay ahead of the curve.

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Compliance Tips for Managing Leave Laws in California

Managing and applying the various rules applicable to California Leaves of Absence can be a challenge for even the most sophisticated business owner. Sorting through which type of leave will apply in any given situation, providing the proper/applicable notice(s) to the employee, and then knowing when one leave crosses over into another type of leave. Many employers are getting this wrong because California has overlapping leave law, with differing rules, documentation requirements and accommodations obligations. For example, something as simple as a pregnancy leave involves no less than three different leave laws overlapping within the state: the California Family Rights Act, the Pregnancy Disability Leave Laws, and the requirements of Paid Family Leave administered through the EDD. Understanding how these laws overlap and when they apply is a critical part of compliance for every business.
Even smaller employers must abide by California’s leave laws. For Pregnancy Disability Leave, an employer with only one employee still must make sure they understand all of the rights, responsibilities and obligations of the leave law. For the California Family Rights Act, which provides 12 weeks of unpaid leave for the illness or injury of an employee or a family member, the threshold is just five employees. This is a recent change, as it previously applied only to businesses with 50 or more employees. Employers now must ensure they understand and communicate the rights and obligations under these laws to their employees, regardless of the size of their business.
California was one of the first states to adopt a mandatory paid sick leave law, implemented as early as 2018. Over the years, the law has evolved, with a significant change occurring at the beginning of 2024, when the state increased mandatory paid sick leave for full-time employees from 24 hours per year to 40 hours per year, making California one of the most generous states in the U.S. for employer-sponsored paid sick leave. Employers are required to provide one hour of paid sick leave for every 30 hours worked, with the ability to put a “soft cap” for full-time employees at 40 hours accrued annually. Importantly, employers must report accrued and used sick leave on every pay stub provided to the employee. However, many businesses are neglecting to provide accurate calculations of accrued and used sick leave, resulting in violations of California Labor Code Section 226(a).
In addition to sick leave, California introduced bereavement leave requirements in 2023. Employers must provide a minimum of five days of unpaid bereavement leave for employees who suffer a family loss. This allowance can be extended up to four times within a 12-month period, meaning employees could take up to 20 days of bereavement leave annually if they experience multiple losses.
By understanding and adhering to these requirements, employers can ensure compliance with California’s leave laws while effectively supporting their employees.