The 2025 California Sick Leave Law: What You Need to Know
The 2025 California Sick Leave Law has been in effect since January 1, and many businesses may not realize they need to adjust their policies. While most employers want to do the right thing, understanding how sick leave is granted, tracked, and reported can get complicated.
Whether you’re an employer managing payroll or an employee checking your paystub, now is a great time to review how sick leave works to ensure policies are being applied correctly.
Key Updates in the 2025 Sick Leave Law
California has expanded its paid sick leave requirements, increasing the minimum number of paid sick days employees are entitled to. The biggest areas of confusion tend to be:
How sick leave is provided (frontloaded vs. accrued)
What needs to be tracked and reported on paystubs
What documentation is required for compliance
Many companies assume they are following the law because they offer paid sick time. But small details in how that time is administered can cause unintentional issues—often without anyone realizing it.
How Sick Leave is Granted: Frontloading vs. Accrual
Employers generally have two options for providing sick leave, and each comes with its own considerations.
Frontloading (Grant Method)
Employees receive their full sick leave allotment at the start of the year.
Simplifies tracking since no accrual calculations are needed.
Some employers hesitate to use this method for part-time employees, worried about what happens if someone takes all their time early in the year and then leaves.
Accrual Method
Employees earn sick time based on hours worked (typically one hour per 30 hours worked).
Ensures time is only available as employees work, but requires consistent tracking.
Administering this method correctly can be tricky—especially when managing rollover rules, accrual caps, and when the “year” resets.
One of the most common mistakes is not tracking accrual properly—whether it’s misunderstanding the 200-day rule, how time rolls over, or when the accrual period starts. These small details can create challenges for employers and employees alike.
Quick Check: Are Policies Being Applied Correctly?
For employers and employees, the easiest way to check if sick leave is being tracked properly is to start with the paystub.
For Employers:
Is your sick leave policy updated for 2025, both in practice and in writing (handbook)?
If payroll is outsourced, is your bookkeeper or accounting team handling records correctly?
Do you have sick time documented so the team knows what sick time they have available?
Have managers been trained on how sick leave works vs. other PTO types?
For Employees:
Check your most recent paystub—does it show a sick leave balance? If not, is HR aware and working on a fix?
Has your employer communicated any updates to the sick leave policy?
Are you accruing at the correct rate or receiving the correct frontloaded amount?
If sick time isn’t listed on your paystub, it could be as simple as a system setting in payroll software. Bringing it up with HR or payroll as a first step is always a good idea.
Why This Matters
Clear policies help employees feel supported and employers stay organized. No one wants to be caught off guard, and taking a few minutes to check now can prevent headaches later.
In my experience, most employees don’t regularly check their paystubs, and employers assume their systems are set up correctly. That’s why I always recommend a quick review—just to make sure everything is lining up as it should.
What to Do Next
Employers should review their payroll and policies at least once a year to make sure they align with current laws. Labor laws change frequently—sometimes quarterly, sometimes annually—and a yearly check keeps everything running smoothly.
Employees should feel comfortable asking HR for clarification if something doesn’t look right on their paystubs. In many cases, small adjustments can be made to ensure everything is being tracked correctly.
If you have questions about how sick leave is applied in your business, now is the time to take a closer look. There’s no rush, but the sooner you review, the easier it is to make any necessary adjustments.