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April 23, 2020
2020-1086

California expands paid leave to essential food sector employees for COVID-19

In Executive Order N-51-20, California Governor Gavin Newsom provides expanded "COVID-19 supplemental paid sick leave" to employees in the food sector, with limited exceptions, who perform work for a hiring entity and are unable to work for one of the following reasons:

  • The food sector worker is subject to a federal, state, or local quarantine or isolation order related to COVID-19.
  • The food sector worker is advised by a health care provider to self-quarantine or self-isolate due to concerns related to COVID-19.
  • The food sector worker is prohibited from working by the food sector worker's hiring entity due to health concerns related to the potential transmission of COVID-19.

Hours of leave available

Food sector workers are entitled to hours of COVID-19 supplemental paid leave as follows:

  • 80 hours of COVID-19 Supplemental Paid Sick Leave if the food sector worker satisfies either of the following criteria:
  • The hiring entity considers the food sector worker to work "full-time."
  • The food sector worker worked or was scheduled to work, on average, at least 40 hours per week for the hiring entity in the two weeks preceding the date the food sector worker took COVID-19 Supplemental Paid Sick Leave.

A food sector worker who does not satisfy any of the above criteria is entitled to an amount of COVID-19 supplemental paid sick leave as follows:

  • If the food sector worker has a normal weekly schedule, the total number of hours the worker is normally scheduled to work for or through a hiring entity over two weeks.
  • If the food sector worker works a variable number of hours, 14 times the average number of hours the food sector worker worked each day for or through the hiring entity in the six months preceding the date the worker took COVID-19 supplemental paid sick leave. If the food sector worker has worked for the hiring entity less than six months, this calculation is instead made over the entire period that the worker has worked for the hiring entity.

The total number of hours of COVID-19 supplemental paid sick leave to which a food sector worker is entitled pursuant to the above shall be in addition to any paid sick leave that may be available to the worker under California Labor Code Section 246.

Rate of pay

Each hour of COVID-19 supplemental paid sick leave shall be compensated at a rate equal to the highest of:

  • The food sector worker's regular rate of pay for the food sector worker's last pay period
  • The state minimum wage
  • The local minimum wage to which the food sector worker is entitled

In no event is a hiring entity required to pay more than $511 per day and $5,110 in the aggregate over the period this Executive Order is in effect.

Employer notice requirements

By April 23, 2020, the California Labor Commissioner must make publicly available a model notice of California Labor Code Section 247. For purposes of COVID-19 supplemental paid sick leave only, if a hiring entity's food sector workers do not frequent a workplace, the hiring entity may satisfy the notice requirement of Labor Code Section 247(a) by disseminating notice through electronic means, such as by electronic mail.

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Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Tax Services - Employment Tax Advisory Services
   • Kenneth Hausser (kenneth.hausser@ey.com)
   • Debera Salam (debera.salam@ey.com)
   • Kristie Lowery (kristie.lowery@ey.com)
   • Peter Berard (peter.berard@ey.com)

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