On Thursday, September 29, 2022, Governor Newsom signed Assembly Bill 152 (“AB 152”) into law, which immediately extends COVID-19 supplemental paid sick leave and offers grants for small businesses and non-profit organizations.
COVID-19 Supplemental Paid Sick Leave
Current law in California requires covered employers to provide COVID-19 supplemental paid sick leave (“SPSL”) through September 30, 2022. Full-time employees are entitled to 40 hours of SPSL. Part-time employees’ entitlement is pro-rated based on the number of hours the employee normally works. In addition to the initial 40 hours of SPSL, a covered employee is entitled to receive an additional 40 hours of SPSL if the covered employee or a family member tests positive for COVID-19. To receive this second 40-hour block of leave, however, the employee must provide proof of their or their family member’s positive test.
AB 152 extends the SPSL until the end of the year. The extension will not entitle employees to a new bank of leave. Instead, it will extend the time employees have to use any remaining leave until the end of the year.
California Small Business and Nonprofit COVID-19 Relief Grant Program
AB 152 establishes the California Small Business and Nonprofit COVID-19 Relief Grant Program within the Governor’s Office of Business and Economic Development (“GO-Biz”) to assist qualified businesses and nonprofits incurring costs for SPSL.
This program would provide grants of up to $50,000 but no more than the actual costs incurred for SPSL between January 1, 2022 and December 31, 2022. To qualify for this relief, the business or nonprofit must meet all of the following criteria:
- Incorporated as a C or S corporation, cooperative, LLC, partnership, limited partnership, or 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
- Have provided SPSL pursuant to the requirements of California Labor Code sections 248.6 and 248.7
- Provides organizing documents, including but not limited to a 2020 or 2021 tax return or Form 990 and a copy of official filing with the Secretary of State
However, there are several exemptions that exclude certain small businesses and nonprofits from eligibility for such relief, even if they meet the above requirements.
The California Small Business and Nonprofit COVID-19 Supplemental Paid Sick Leave Relief Grant Program will be implemented by CalOSBA.
Questions
If you have any questions regarding this Legal Alert, please contact the following attorneys from our office or the attorney with whom you typically consult.
Christopher Onstott
constott@kmtg.com | 916.321.4582
Jonathan Hsieh
jhsieh@kmtg.com | 916.321.4228
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