California time off laws: What you need to know to protect your practice

In California, it can be hard for employers to keep track of the various, and changing, time off requirements. To help members, CDA’s Endorsed Services partner HR for Health breaks down the most common types of time off and how dental practices can stay compliant with California employment laws. 

Paid time off (PTO) 

PTO is a bank of hours that employees can use for vacation time off, personal time off and sometimes sick leave. The state of California doesn’t mandate that employers offer vacation or PTO to workers, but if you do decide to offer it, be aware that “use-it-or-lose-it” policies are not legal in California. All accrued, unused PTO must be: 

1. Rolled over or paid out at the end of the benefit year and cannot be forfeited OR 
2. Paid out at employment separation, regardless of the reason 

California law also states that once a time off policy has been established, employers must follow through. Staying compliant means having a written policy with a clear accrual rate and cap that is communicated at hire and kept current in your employee handbook. 

Holidays 

California also doesn’t require you to offer any designated holiday time off or premium pay. If your practice does have a policy that promises premium pay or certain days off, you are required to uphold those promises. Overtime still applies, and you may be required to provide reasonable accommodations for employees who observe religious holidays.  

Mandatory paid leave benefits 

California laws are intended to ensure employers provide sufficient leave for employees to take care of themselves and their families. Some types of paid leave benefits are employer-funded, while others are supported by the state. 

Paid sick leave 

Under California’s Healthy Workplaces Healthy Families Act, virtually every employer with even a single employee in California must provide paid sick leave. Note that some cities mandate more sick leave hours per year than others.  

Some sick leave requirements to keep in mind: 

1. Employees who work at least 30 days in a year are eligible for paid sick leave following a 90-day waiting period. 
2. The state minimum is 40 hours of sick leave (equivalent to five days) per year, either accrued at one hour per 30 hours worked or front-loaded. 
3. Paid sick leave can be used for the employee’s own illness or preventative care, or to care for a qualifying family member. 
4. Sick leave can also now be used for jury duty leave and for “safe” leave, such as if someone is a victim of domestic violence seeking care or safety. 

Include a clear, compliant sick leave policy in your employee handbook with details about advance notice. Be careful not to penalize employees who take legitimate sick leave. 

Paid Family Leave (PFL) 

Many states, including California, have adopted paid family leave (PFL) benefits that provide short-term wage replacement for employees who need to take time off for family care. This is separate from sick leave.  

Some PFL requirements to keep in mind: 

1. PFL replaces a portion of wages for up to eight weeks but does not provide leave rights or job protection.
2. Employees can use PFL benefits to care for a family member who is seriously ill, support a military family member who is deployed, bond with a new baby, welcome home a foster child or adopt. 
3. Employers do not need to contribute or pay salary during PFL. Employees apply for benefits through the state.  

Mandatory unpaid leave benefits 

Both federal and California time off compliance laws include unpaid leave requiring employers to protect employees’ jobs while they’re taking time off. These longer types of leave cost employers little to nothing, but compliance is strictly enforced. 

California’s Family and Medical Leave Law (CFRA) 

Employers with at least five employees must comply with the California Family Rights Act (CFRA). Employees can use CFRA for chronic or serious health conditions, bonding with a child following birth, adoption or foster placement, or caring for a family member with a serious health condition. This type of leave doesn’t provide wage replacement.  

Some CFRA requirements to keep in mind: 

1. Eligible employees may take up to 12 weeks of unpaid job-protected leave within a 12-month period. 
2. The definition of a family member under this law is broad and can include parents, children, siblings, grandparents or chosen family (termed a “designated person”). 
3. Employees can also apply for PFL benefits while on CFRA leave. This way, their job remains protected and their wage is partially replaced. 
4. Employers are required to hold an employee’s job position while they’re on CFRA leave and continue to provide them with health insurance benefits. 
5. Employees who need to use CFRA may use all 12 weeks at once or periodically (common among employees who have chronic health conditions that may flare up.) 

Family and Medical Leave Act (FMLA) 

Similar to CFRA, the Family and Medical Leave Act (FMLA) provides up to 12 weeks of unpaid job-protected leave where employees can deal with serious health conditions, care for loved ones, welcome a child or handle certain military needs. Unlike CFRA, FMLA is only applicable to employers with 50 or more employees. 

Some FMLA leave requirements to keep in mind: 

1. FMLA has a narrower definition of a family member than CFRA, only applying to children, parents, spouses or next of kin. 
2. If an employee’s need for unpaid leave falls into a gray area, they may use FMLA and CFRA concurrently. 

FMLA is a federal law, not California-specific. Stay compliant with clear documentation from both the employee and the employer. 

Bereavement leave 

California requires employers with five or more employees to provide eligible employees with unpaid bereavement leave following the death of certain family members. This leave is separate from CFRA and FMLA and is intended to give employees time to grieve, make arrangements and handle matters following the loss of a loved one. 

Some bereavement leave requirements to keep in mind: 

1. Eligible employees may take up to five days of bereavement leave. 
2. The leave generally must be taken within three months of the family member’s death. 
3. Covered family members include a spouse, child, parent, sibling, grandparent, grandchild, domestic partner or parent-in-law. 
4. Employers may require reasonable documentation, such as a death certificate, obituary or written verification from a funeral home. 

Include a clear bereavement leave policy in your employee handbook so employees understand when the leave is available, who qualifies and what documentation may be required. 

Include clear, detailed policies in your employee handbook to stay compliant 

The thread running through every type of leave—voluntary, paid or unpaid—is clear documentation and practice policies. To support CDA member practices of every size, HR for Health offers document automation, custom employee handbooks, flexible scheduling, people management and on-demand HR support. To learn more about how HR for Health can help you stay on top of federal, state and local time off compliance, book a demonstration.