California Employers – COVID Sick Leave Extended; Grants May be Available to Cover Cost

The California legislature has extended COVID-19 supplemental sick leave. Assembly Bill (AB) 152 mandates that employers with 26 or more employees provide COVID-19 supplemental paid sick leave through December 31, 2022.

The bill also amends standards for when employees may use the supplemental sick leave and establishes the California Small Business and Nonprofit COVID-19 Supplemental Paid Sick Leave Relief Grant Program.

Employees do not receive any additional time off beyond the previously mandated 80 hours to which they are entitled. Instead, the timeframe in which they may use the sick leave has been extended to the end of this year or beyond, depending upon when they become ill.

AB 152 also establishes grants of up to $50,000 for some private employers, including nonprofits, to cover the actual costs of COVID-19 supplemental paid sick leave. Grant funds will not be considered as gross income for state tax purpose.

To qualify, certain criteria must be met by the company or nonprofit:

  • In operation prior to June 1, 2021
  • Currently active and operating
  • Have 26-49 employees
  • Have a physical presence in California

There are exceptions, however, to these qualifications.

PBO Advisory Group can assist you with understanding and implementing the extensions provided for under AB 152, as well as advise you on any tax and accounting issues that could arise. Please feel free to reach out to us for more information.

Nicole Devine
Consulting Chief People Officer
858-622-1681 Ext. 287