California / Massachusetts Sick Time
In 2014, California and Massachusetts passed laws regarding mandatory, paid sick leave. Each of these laws will each take effect on July 1, 2015. These laws are similar but not the same in terms of accrual rates and maximum amounts. If you are using CYMA Payroll, employ workers in these states, and have not researched these laws, CYMA highly advises you to do so.
Based upon the general tenets of the regulations, here are some examples of how those items could be implemented in CYMA Payroll:
- Sick Leave Accrual: In both states, the accrual rate is 1 hour for every 30 hours worked.
- This can be accomplished by setting up an accrual feature with a Calc Method set to “System Calculated” and Accrued Days Per Year set to 8.67 and Work Days Per Year set to 260. When these two values are set, you are effectively establishing an hourly accrual rate of .03335(8.67/260) which when multiplied by 30 results in 1 hour of accrual.
- Wait Period Before Taking Sick Time: In both states there is a 90 day grace/waiting period where sick accrual occurs but no time can be taken. This can be based upon the
employee’s start date or the start date of these new regulations. In California, an employee must work 30 days in the calendar year before they can take any accrued sick time.
- The wait period can be accomplished by setting a Use Beginning Date under the “Effective Dates” section on the associated sick pay feature so that it won’t be active until after the wait period.
- Sick Leave Taken Annual Maximum: California allows for 24 hours per year while Massachusetts allows for 40 hours per year.
- This cap can be set on the associated sick pay feature in the Annual Maximum Hours field.
- Sick Leave Accrual Annual Maximum and Rollover Amounts: California has a maximum accrual amount of 48 hours at any time which would also include rollovers into a new calendar year. Massachusetts does not have a hard cap but does only allow 40 hours to be rolled over into a new calendar year.
- California’s cap can be set in the Maximum Accrual Hours field on the sick pay accrual feature. Massachusetts' rollover of 40 hours will require that a report such as the Accrual Feature Balance Report be run at the end of the year to determine those employees who may be in excess of 40 hours accrued. For those employees with more than 40 hours accrued, adjustment entries should be made to bring their balance back to 40 hours accrued.
Again, these are general guidelines to assist you in setting up the sick accrual and pay features for these two states but it is recommended that you review the regulations and apply them appropriately for your particular organization.