California Paid Sick Leave and Wage Statement Compliance
Can I provide electronic records regarding paid sick leave accruals and usage?
California employers must navigate a complex web of wage statement and paid sick leave requirements under the Healthy Workplaces, Healthy Families Act and the Labor Code. This article discusses whether employers can satisfy the accrual and usage obligations using electronic systems to deliver sick leave balances and wage statements. I’m not aware of any appellate court cases directly addressing the issues, so we have to draw our conclusions from text of Labor Code sections 246 and 226, a 2006 Labor Commissioner opinion letter, and current regulatory guidance.
Paid Sick Leave: Labor Code Section 246
Labor Code section 246 requires employers to provide paid sick leave to employees who work at least 30 days for the same employer in California. As of January 1, 2024, the law mandates at least 5 days or 40 hours of paid sick leave per year. Employees may accrue sick leave at a rate of one hour for every 30 hours worked, or employers may use alternative accrual methods if the minimum annual requirements are met. Accruals can be capped at 80 hours or ten days, and employers may limit use to 40 hours or five days per year.
Wage Statement Requirements: Labor Code Section 226
- Labor Code section 226 requires employers to furnish employees, semimonthly or at the time of each payment of wages, an accurate itemized statement in writing showingGross wages earned
- Total hours worked
- All deductions
- Net wages earned
- Inclusive dates of the pay period
- The employee’s and employer’s name/address
- All applicable hourly rates and hours worked at each rate
Labor Code 226 specifies this wage statement can be a detachable part of the check or provided separately if wages are paid by personal check or cash. Wage statements must be kept on file for three years and must be accessible to employees.
Electronic Delivery of Wage Statements and Sick Leave Balances
In 2006, the Labor Commissioner issued an opinion letter about whether employers may use electronic delivery for wage statements. (DLSE 2006-07-06). The DLSE approved electronic pay stubs provided:
- Employees can elect to receive paper wage statements at any time
- Electronic wage statements have all required information under section 226(a)
- Access is secure and free, with the ability to print or download at no cost
- Terminals or other means to access are provided at the workplace for employees without computers or printers
- Employers keep electronic copies for at least three years
The opinion letter specifically recognized that, under Labor Code section 8, a “[w]riting includes any form of recorded message capable of comprehension by ordinary visual means.” Thus, electronic wage statements qualify as “statements in writing” so long as employees can print or ask for paper copies. Critically, if an employee cannot reasonably print their own records, the employer must provide a physical copy.
Compliance Advice
Based on these statutes and the DLSE guidance, employers who provide real-time access to wage statements and paid sick leave accruals via a secure third-party website are generally compliant if:
- Employees are informed at each pay period how to access this information
- Employees are given the option to receive a printed copy at no expense
- The system maintains the legal recordkeeping requirements
If an employee asks for a printed statement or cannot print the statement, the employer must supply a hard copy. Having electronic access alone may not be enough if a worker cannot retrieve or print a copy independently.
Caveat: Opinion Letters Are Not Binding Law
Department of Labor Standards Enforcement (DLSE) opinion letters are interpretations, not binding law. Courts may not give them significant deference, and statutory requirements in Labor Code 246 and 226 control. Employers should track legislative updates and consult legal counsel for any unusual situations or if uncertainty arises about compliance.
If you have questions about paid sick leave, wage statements or other parts of California employment laws, contact the Nuddleman Law Firm. Robert Nuddleman routinely advises employers and employees regarding wage and hour requirements. He often presents seminars and training regarding workplace compliance.