Assembly Committee Passes Sick Leave Mandate

A California Chamber of Commerce-opposed bill that mandates that all employers, except those with collective bargaining agreements, provide any employee who has worked in California for seven days with paid sick leave, at the accrual rate at one hour for every 30 hours worked has passed the Assembly Judiciary Committee.

AB 400 (Ma; D-San Francisco) unreasonably expands both public and private employers’ costs and liability for new protected and paid sick leave for employees.

After the 90th day of employment, employees would be allowed to utilize their paid sick leave to care for themselves or a family member.

AB 400 allows any unused sick leave accrued in the preceding year to be carried over to the next year, which is a significant change in existing law.
Under AB 400, employers also would be required to post information regarding employees' right to paid sick leave, thereby adding to the numerous and burdensome posting requirements in California.

The costs for these mandates alone will overwhelm businesses in California that already are struggling to survive in this economy.

Increases Employer’s Risk
In addition to increasing business expenses and potentially resulting in job losses, AB 400 will also dramatically increase an employer's risk for legal fees and costs.

AB 400 creates a private right of action for employees to sue for any alleged violation with the right to recover back wages, liquidated damages, withheld sick days, attorney fees, reinstatement, and injunctive relief.

In addition, AB 400 creates a rebuttable presumption of retaliation. Specifically, under AB 400 it will be presumed that an employer retaliated against an employee if the employer takes any corrective action within 90 days of an employee's complaint or opposition to an employer's practice or policy regarding mandated paid sick leave.

AB 400 also imposes penalties against an employer for failure to post the required notices, as well as maintain records regarding employees' accrued sick leave.

California recently was rated one of the top 10 litigious states in the nation. AB 400 will emphasize that point with the various vehicles for litigation it creates.

Costly Mandate
California has the second highest unemployment rate in the nation at 12.2 percent, and is lagging the rest of the country in recovering from the recession. With this dismal financial outlook, California cannot afford to continue to burden private businesses with costly mandates such as AB 400. Private sector growth, a critical component in California's economic recovery, will be discouraged by AB 400.

Key Vote
AB 400 passed the Assembly Judiciary Committee on April 26 on a vote of 6-3.

Ayes: Atkins (D-South Park/Golden Hill), Dickinson (D-Woodlake), Huffman (D-San Rafael), Feuer (D-Los Angeles), Monning (D-Carmel), Wieckowski (D-Fremont).

Noes: Huber (D-El Dorado Hills), Jones (R-Santee), Wagner (R-Irvine)
Absent/abstaining/not voting: Gorell (R-Camarillo).

The bill will be considered next by the Assembly Appropriations Committee.

Source: California Chamber of Commerce
April 29, 2011

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