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AB 1867 Paycheck Notice and Posting Requirements

9/21/2020

 
Passed earlier this month, AB 1867 created a new COVID-19-related paid sick leave (PSL) system that specifically effects employers with greater than 500 employees. Contained within the legislation are certain paystub and posting requirements that employers must be aware of to avoid potential wage and hour violations.
AB 1867’s newly created PSL regime under Labor Code Section 248.1 incorporates Section 246(i) which states:

An employer shall provide an employee with written notice that sets forth the amount of paid sick leave available, or paid time off leave an employer provides in lieu of sick leave, for use on either the employee’s itemized wage statement described in Section 226 or in a separate writing provided on the designated pay date with the employee’s payment of wages.

The legislation now requires that in addition to existing paid sick time paystub provisions, COVID- 19 PSL must also be independently listed. This can be accomplished through notation on the pay stub itself or within a secondary document included with all successive paychecks. It is recommended that employers continue with their current practice, whichever it may be.
​
The AB 1867 paystub listing should reflect the available hours of PSL, presumably eighty, and should probably reference COVID-19 specifically to avoid confusion with any other paid sick time or leave available to the employee.

AB 1867 further identifies the paystub requirement is, “is not enforceable until the next full pay period following the date of enactment of this section.” AB 1867 was passed on September 9th and PSL became available September 19th. Accordingly, employers should include this new COVID-19 paystub listing in their next payroll.

This paystub requirement includes all employees, not just a union or hourly workforce.

Additionally, the DIR released a Q&A last week which contained information on posting requirements and a link for a model notice on AB 1867 compliance. The posting requirement is currently in effect and all qualifying employers should be in compliance.

The Labor Relations team advises UCC members to consult with their H.R. departments on all new payroll notice and posting requirements for AB 1867.

Thank you to Cox Castle’s Dwayne McKenzie for assisting with the above information.

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