March 2023

State Updates


California extends COVID-19 Supplemental Paid Sick Leave requirement


Author: ADP Admin/Wednesday, October 5, 2022/Categories: Compliance Corner , State Compliance Update, California

California’s Governor has signed AB  152 which extends COVID-19 Supplemental Paid Sick Leave (SPSL) through December 31, 2022 for employers with 26 or more employees.   AB 152 amends the existing SPSL law and provides for state grants to certain employers that provide such leave.

The Details:

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<>The SPSL law was set to expire on September 30, 2022, but AB 152 extends it through December 31, 2022.   As a result, through December 31, 2022, employers with 26 or more employees must continue to provide up to 80 hours total of COVID-19 supplemental paid sick leave.  Importantly, AB  152 does not provide an additional bank of time to those employees who may have already exhausted their allotted SPSL for the year. 

Changes to Employee Testing

Existing law allows an employer to require submission to a diagnostic test on or after the fifth day an employee reports testing positive for COVID-19.  

Under AB 152, if the diagnostic test is positive, the employer may also require the employee to submit to a second diagnostic test within no less than 24 hours. The employer must make all of these tests available at no cost to the employee.

AB 152 also provides that an employer has no obligation to provide additional paid leave if an employee refuses to comply with the employer’s required return to work diagnostic tests. 

Wage Statement Requirements Continued

Existing law requires employers to provide employees with written notice that sets forth the amount of SPSL the employee has used through the pay period in which it was due to be paid, either on an itemized wage statement or in separate writing provided on the designated pay date.  SPSL must be set forth separately from paid sick leave.  Employers must list zero hours used if the employee has not used any COVID-19 supplemental paid sick leave.  AB 152 continues this requirement.   

New Grant Program:

AB 152 establishes a new grant program through which certain small employers and non-profits employers can seek reimbursement if they provide covered leave during 2022. The maximum reimbursement amount is $50,000. The grant program will be implemented by the California Office of the Small Business Advocate (CalOSBA). Applicants must provide proof of employee payroll records that verify all COVID-19 supplemental paid sick leave provided by the applicant under the law that match the amount of the grant request.

To be eligible for reimbursement under the program, California employers must meet all of the following requirements:

·      Are one of the following:

a.     A “C” corporation, “S” corporation, cooperative, limited liability company, partnership or limited partnership; or

b.    A registered 501(c)(3), 501(c)(6) or 501(c)(19).

·      Began operating before June 1, 2021.

·      Are currently active and operating.

·      Have 26 to 49 employees and provide payroll data and an affidavit, signed under penalty of perjury, attesting to that fact.

·      Provided COVID-19 supplemental paid sick leave in accordance with the law in 2022.

·      Submit organizing documents, including a 2020 or 2021 tax return or Form 990, and a copy of official filing with the Secretary of State or with the local municipality.

Certain employers are specifically excluded from the program. See the text of the law for details.

Next Steps:

Covered employers should:

  • Read the text of the law in full and ensure compliance.
  • Post an updated workplace notice once published by the state.
  • Continue complying with the wage statement / notice requirements for pay periods through December 31, 2022.
  • Review and revise policies, forms, and practices to reflect the extension and other changes.
  • Consult legal and tax advisors for assistance in determining whether your business is eligible for reimbursement from the state for COVID-19 supplemental paid sick leave provided in 2022

Please contact your ADP service representative with any questions.

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