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California paid sick leave in payroll records
A sick leave balance depends on the employer’s policy, the employee’s service and the leave recorded in payroll. Keep the policy and the running balance together so a payroll change does not silently alter how leave is earned or used.
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General information, not legal or tax advice.
Check coverage before selecting a payroll setting
DIR generally requires five days or 40 hours of paid sick leave. Coverage includes employees who work at least 30 days within a year for the same California employer, including part-time and temporary staff, subject to exceptions. Employees must satisfy a 90-day employment period before taking leave.
Sources: DIR Labor Commissioner's Office (DLSE) FAQ - Paid Sick Leave
Document accrual or front-loading
The standard accrual approach earns at least one hour for each 30 hours worked. Front-loading makes the full year’s leave available at the start of a year-long period. Identify the policy actually adopted before comparing balances, and ask your adviser to review alternative accrual arrangements.
Sources: DIR Labor Commissioner's Office (DLSE) FAQ - Paid Sick Leave
Keep available leave visible
DIR requires the available sick leave balance on the pay stub or a separate writing. Review the employee-facing balance after importing beginning amounts or correcting leave usage. Keep an explanation for adjustments so the employee’s history remains understandable.
Sources: DIR Labor Commissioner's Office (DLSE) FAQ - Paid Sick Leave
Review payment and rehire records
Nonexempt sick leave is paid using the applicable regular non-overtime rate method and no later than the next regular payday after use. Unused leave generally need not be paid at separation unless the policy provides it. DIR describes restoring unused accrued leave on rehire within 12 months unless paid out under a PTO policy.
Sources: DIR Labor Commissioner's Office (DLSE) FAQ - Paid Sick Leave
Schedule leave review alongside wage updates
As a practical payroll control, review leave settings when updating pay rates. DIR’s verified announcement sets California’s minimum wage at $17.40 and the exempt salary floor at $72,384 from January 1, 2027. Those wage changes are separate from the leave balance; check both parts of the payroll setup with the appropriate reviewer.
Sources: leave balances and payroll review
Keep sick leave records understandable
Tidwell helps maintain payroll and leave records. Bring your adopted policy and adviser’s instructions so payroll reflects the intended setup.