Penalties for Non-Compliance

The PSL law contains stiff fines and penalties for not providing sick days — ranging from $50 to $4,000 aggregate — and allows for a civil action by the state. The Labor Commissioner is charged with enforcement.

In addition to administrative penalties, the Labor Commissioner can also order reinstatement, backpay, and the payment of sick days unlawfully withheld.

Some of the penalties include:

Unlawful withholding of sick days: The greater of the dollar amount of paid sick days withheld multiplied by three, or $250 per employee.
Violation results in harm to the employee or person: Administrative penalty of $50 per day “or portion thereof that the violation occurred or continued.” This penalty would apply in instances of discharge, for example.

There is a $4,000 aggregate cap on these two penalties. These penalties are paid to the employee or other person whose rights were violated.

Failure to promptly comply: The Labor Commissioner has discretion to take appropriate action, including filing a civil action, and may assess a penalty of $50 per day, per employee or other person whose rights were violated. This penalty is paid to the state. There is no cap on this penalty. The stated purpose is to reimburse the state for the costs of investigating and remedying the violation.
Civil action: Brought by the Attorney General or the Labor Commissioner on behalf of the public, and includes reasonable attorney’s fees and costs. The law does not expressly permit employees to bring a private civil lawsuit against employers for violation of the statute.
Failure to post the poster: $100 civil penalty per offense.

Isolated, unintentional payroll errors or notice errors that are clerical or inadvertent mistakes regarding accrual and use of PSL will not be considered violations of the PSL mandate.

A recent court decision allows employees to bring a Private Attorneys General Act (PAGA) claim against their employer for violations of the HWHF, exposing employers to more private lawsuits over paid sick leave claims than they had been in the past.1

Importantly, the determination as to whether an employer has committed a violation may include an examination of whether the employer has compliant policies and practices in place.

Employers should review their policies and practices to ensure compliance. Employers may want to consider including a reporting/complaint mechanism. For example, if an employee is denied PSL by their supervisor, you could institute a process where the employee can go to HR and ask for a second “check” on whether they can take sick leave.

1. Wood v. Kaiser Foundation Hospitals, 88 Cal.App.5th 742 (2023)