California's New Paid Sick Leave Law (AB 1522): Approved by the Governor of California on September 10, 2014, the Healthy Workplaces, Healthy Families Act, employees who work in the state of California for 30 or more days within a year from the commencement of employment are now entitled to paid sick days. For customers with employees in California this means they now have to accrue for these paid sick days, either under the accrual method or the lump sum method. To help our customers understand how to meet this obligation in Sage 300, we have published some examples.
Sage 300 and the Healthy Workplaces, Healthy Families Act of 2014
Overview
The Healthy Workplaces, Healthy Families Act of 2014 requires employers to provide paid sick leave to employees for the diagnosis, care, or treatment of an existing health condition of, or preventive care for, an employee or an employee's family member. It also covers domestic violence, sexual assault, or stalking of the employee.
Employees who work in the state of California for 30 or more days within a year from the commencement of employment are entitled to paid sick days, to be accrued at a rate of no less than one hour for every 30 hours worked (one hour for every 40 hours worked for an employee exempt from overtime, unless the employee's normal workweek is less than 40 hours, in which case the employee will accrue paid sick days based upon that normal workweek).
Q: When did B-29026 go into effect?
A: It went into effect July 1, 2015.
Q: How will Sage 300 support these requirements?
A: Sage 300 is supporting both, the accrual method as well as the lump sum option.
Q: What is the accrual method?
A: Employees who work in the state of California for 30 or more days within a year from the commencement of employment are entitled to paid sick days, to be accrued at a rate of no less than one hour for every 30 hours worked (one hour for every 40 hours worked for an employee exempt from overtime, unless the employee's normal workweek is less than 40 hours, in which case the employee will accrue paid sick days based upon that normal workweek).
Q: How does the accrual option work in Sage 300?
A: Example of using the accrual method in Sage 300 In this example, we assume an Accrual plan based on 48 hours 6 days per year. The plan is based on a weekly accrual, so the accrual amount is calculated as such: 48 hours divided by 52 weeks (hours divided by the frequency). Round up and use Max Accrual to limit any overage (using 3-5 decimal places will reduce fractions). Here is the example setup considering a limiting concession of only being able to accrue 48 hours or 6 days per year.
Q: What is the lump sum option?
A: Instead of the accrual method, employers can give all employees at least 24 hours (three days) of paid sick leave at the beginning of each year. Under this option, no accrual or carryover is required.
Q: How does the lump sum option work in Sage 300?
A: Sage 300 does not have a yearly lump sum frequency, but the lump sum option can be used through limiting increments in the setup on a frequency that matches the payroll. Example of using the lump sum method in Sage 300 This example will assume a weekly payroll and 24 hours (3 Days) of paid sick leave as a Lump Sum (this can be changed to 48 Hours or 6 days per year whereby the payout is monitored to 24 hours per year). The first payroll will show an exception that the balance of the plan will increase by 24 hours. The check will show the balance: The subsequent weekly payroll shows the balance with no additional hours accrued or provided as a lump sum: If paid out, no additional lump sum will be provided and the balance will decrease accordingly: