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Unlike unused, accrued vacation — which is treated like wages — mandatory PSL does not need to be paid out at the end of employment (i.e., no “cash-out” of PSL at termination, resignation, retirement, or other separation from employment).1
Sick leave, including mandatory PSL, is not considered a form of wages.
Unlike other leave laws, previously accrued and unused paid sick days must be reinstated if an employee leaves employment and then is rehired within one year. Upon rehire, the employee must be allowed to use those previously accrued sick days and to begin accruing additional paid sick days.2
1. Lab Code sec. 246(g)(1)
2. Lab. Code sec. 246(g)(2)