• Effective January 1, 2024, the state law overrides the following provisions in any local paid sick leave ordinance that is contrary to the state law:

• No requirement to pay out unused sick leave balances upon termination;
• Reinstatement of unused balances for employees rehired within a year;
• Employers’ ability to choose to advance paid sick leave prior to accrual;
• The requirement to set forth available balances on an employee’s wage statement or other writing accompanying the employee’s paycheck;
• The rate of pay at which paid sick leave must be paid;
• Requirements for notice for foreseeable and unforeseeable usage of paid sick leave;
• Timing of payment of paid sick leave when used.1

Otherwise, when the two laws differ, you must follow whichever is more generous to employees.

The ordinance establishes minimum requirements pertaining to LASL. You may provide more generous leave than the ordinance requires. You can find more information regarding the ordinance on the city's website. You can also contact the Los Angeles Office of Wage Standards (the OWS) at 844-924-3752, or by email at wagesla@lacity.org.

Employers Covered Under the city of Los Angeles Ordinance

The ordinance applies to all employers, regardless of size. The ordinance applies to public and private employers and for-profit and not-for-profit companies.

“Employer” is defined by the ordinance as: “any person, as defined in Section 18 of the California Labor Code, including a corporate officer or executive, who directly or indirectly or through an agent or any other person, including through the services of a temporary service or staffing agency or similar entity, employs or exercises control over the wages, hours or working conditions of any employee.”2

If you already have a paid leave policy that makes the same amount of paid leave available and that can be used for the same purposes as LASL, you are not required to provide additional paid sick leave so long as your paid leave policy does not impose additional restrictions on use (for example, imposing additional notice or scheduling requirements).

If you provide less than 48 hours of paid time off but provide other benefits to employees (such as other paid time off, health and retirement benefits, and flexible schedules), you can request a determination from the OWS as to whether your policy is more generous than is required under the Ordinance.3

To request a determination, complete the city’s MW-7 MWO Paid Sick Leave Determination Request Form and submit it to the OWS.

The OWS will consider the totality of the circumstances to determine whether your established policy is more generous than what the Ordinance requires. The OWS may allow an employer’s established compensated time off policy to remain in place, even though it does not meet the Ordinance’s accrual rate and eligibility requirement. If OWS determines an employer’s policy provides employees with less benefits, OWS will require the employer to change its policy to comply with the Ordinance.

Whether your business qualifies as a “small business” with 25 or fewer employees, it is determined by the average number of employees you employed during the previous calendar year who worked for at least two hours per week within the geographic boundaries of the city. For a new business, the number of employees is determined by the number of employees employed during the first pay period.

Employees Entitled to the Benefit

A covered employee (employee) under the Ordinance is any employee who works for at least two hours in a particular week (i.e., any seven consecutive days, beginning with the same calendar day each week) in Los Angeles for the same employer for 30 or more days within a year, and is entitled to minimum wage under California state law.4 Part-time, full-time and temporary employees are covered. Exempt employees are not covered by the ordinance, but they are still covered under state law.5

An employee traveling through the city who makes even one stop in the city as a requirement of the employee’s job (e.g., to make a pickup, delivery, sales call or service call) is covered by the ordinance for all hours worked in the city, including travel time within the city, as long as the employee performs at least two hours of work in the city during the week. An employee traveling through the city with no employment-related stops is not covered by the ordinance. Stops for refueling or personal meals or errands are not considered employment-related stops.6 An employee who lives in the city and performs work for an employer from home is covered by the ordinance. An employee who works from a home outside the city is not covered by the ordinance, unless the employee also works at least two hours in any particular week in the city.7

Calculating Leave – Employer Options

The ordinance offers you two different options to provide LASL.8 The following are the two basic approaches, which are further described below:

• Accrual of LASL at a specific rate (the accrual method); or
• Provide a lump sum of LASL at the beginning of each year or 12-month period (the lump-sum method).

You may use different methods for different classifications of employees. For instance, you may use the accrual method for part-time employees and the lump-sum method for full-time employees, or vice versa.

The ordinance does not change your obligation to comply with a contract, collective bargaining agreement, employment benefit plan or other agreement that provides more generous sick leave to employees than required by the ordinance.

Accrual Method

Under the accrual method, an employee working in Los Angeles accrues one hour of LASL for every 30 hours worked in the city, subject to any accrual cap.9 For more information, see “Cap on Accrual” on this page.

The only accrual option under LASL is one hour for every 30 hours worked.

These important conditions apply to the accrual method:

• New employees begin to accrue LASL on their first day of employment.10
• An employee’s hours worked in the city must be tracked.
• Employees accrue LASL on all hours worked in Los Angeles, including overtime hours. To comply with both the ordinance and the state law, employees must accrue sick leave on every hour worked, regardless of location.
• Any unused LASL must carry over to the following year of employment. However, you may cap the employee’s total accrued LASL. For more information, see “Cap on Accrual” on this page.
• You may also limit the amount of LASL an employee can take in any one year. For more information, see “Parameters of Paid Sick Leave Use” on this page.

Lump-Sum Method

The lump-sum method allows you to avoid the accrual provisions by having a policy that provides sick leave in a “lump sum.” You grant the full amount of LASL at the time of hire and annually thereafter at the beginning of each year of employment, calendar year or 12-month period. You can choose a more generous lump-sum if desired, but it cannot be less than 48 hours.

These important conditions apply to the lump-sum method:11

• You must provide LASL at the beginning of each year of employment, calendar year or 12-month period. For example, if you provided 48 hours on July 1, 2023, you must provide another 48 hours on July 1, 2024.
• The employee must receive a minimum of 48 hours.
• You must make the entire lump-sum available to the employee at one time.
• Unused LASL carries over year-to-year, subject to the maximum accrual. This provision is more generous than the state law, which does not require carryover under the lump-sum method for providing sick leave.

• Also, the state law requires employers who use the lump-sum method to provide at least 40 hours or five days of paid sick leave, whichever is greater. If you have employees whose regular workday includes 10 or more work hours, their lump-sum amount may need to be higher to ensure that it is no less than the equivalent of five of the employees’ workdays.

You can choose a more generous lump-sum if desired.

Cap on Accrual

Unused LASL, whether accrued or provided in a lump-sum, carries over from year to year.12 Unless you want to allow an employee to accrue unlimited LASL, you should consider placing a cap on the maximum amount on LASL that can be accrued. The ordinance prohibits accrual caps of less than 72 hours.

• Effective January 1, 2024, the state law requires employers to allow employees to accrue up to 80 hours or 10 days of paid sick leave (whichever is greater) prior to initiating a cap. As a result, employers may no longer utilize the LASL cap of 72 hours.

Any cap on accrual should be in writing and communicated to employees.

After an employee has reached this maximum amount, no additional LASL will accrue until some or all of the employee’s LASL is used.

The accrual cap is a “floating” cap, not an annual cap. Whenever an employee’s accrued LASL drops below the accrual cap due to usage, the employee begins to accrue LASL again at the rate of one hour for every 30 hours worked.

Permissible Usage

Employees must be allowed to use LASL for any of the following reasons:13

• For the diagnosis, care, or treatment of an employee’s existing health condition or preventive care;
• For the diagnosis, care or treatment of an existing health condition or preventive care, for an employee’s covered family member, as defined below;
• Serving on a jury as required by law;
• Appearing in court to comply with a subpoena or other court order as a witness in any judicial proceeding;
• For certain, specified purposes when the employee is a victim of, or has a family member who is a victim of, a qualifying act of violence as defined under state law. For more information, see Crime or Abuse Victims’ Leave.
• For leave taken on or after January 1, 2026, when the employee is a victim or a family member of a victim, taking time off from work to attend judicial proceedings related to that crime, or any proceeding where a right of that person is an issue.

Agricultural employees who work outside may use paid sick time to avoid smoke, heat, or flooding conditions created by a local or state emergency, including when the employee’s worksite is closed due to smoke, heat or flooding conditions.14

For purposes of LASL, a covered family member includes:15

• A child, defined as a biological, foster or adopted child; a stepchild; or a legal ward, regardless of the age or dependency status of the child. “Child” also includes a child to whom the employee acts as a parent, even if the child is not the employee’s legal child;
• A parent, defined as a biological, foster or adoptive parent; a stepparent; or a legal guardian. “Parent” also includes a person who is a biological, foster or adoptive parent; stepparent or legal guardian of the employee’s spouse or registered domestic partner; or a person who acted as the employee’s parent when the employee was a minor, even if the person is not the employee’s legal parent;
• A sibling;
• A grandparent;
• A grandchild;
• A spouse;
• A registered domestic partner; or
• An individual related by blood or affinity whose close association with the employee is the equivalent of a family relationship.

The state law allows employees to use paid sick leave to care for a “designated person,” which is more broadly defined than the LASL and can be any person identified by the employee at the time the employee requests sick leave. The ordinance allows employees to use LASL for some “family members” not covered by the state law, such as an individual whose relationship to the employee is like that of family relationship. To comply with both laws in a single policy, you must allow employees to use their sick leave for the family members identified by both laws.

For more information about a “designated person” under the state law, see Permissible Usage.

An employee can use the full amount of accrued LASL for a covered family member.

Parameters of Los Angeles Sick Leave Use

There are important points regarding how employees may use LASL:

• An employee can begin using LASL on the 90th day of employment.16
• The ordinance allows you to limit an employee’s use of LASL to 48 hours per year.17 This limitation applies even if the employee has accrued more than 48 hours of LASL. You can choose a more generous limit if desired, but it cannot be less than 48 hours.
  • The state law allows employers to limit the number of hours of sick leave an employee can use each year to 40 hours or five days, whichever is greater. If you have employees whose regular workday includes 10 or more work hours, their limit on use may need to be higher to ensure that the limit on use is no less than the equivalent of five of the employees’ workdays.
• LASL must be provided upon an employee’s oral or written request. Employees must notify you in advance if the paid sick leave is planned or “as soon as practicable” if the need for leave is unforeseeable.18 The state law overrides the ordinance on employee notice to the extent that it is contrary. The state law requires “reasonable” notice if the paid sick leave is planned, while the LASL does not include a reasonableness requirement. Employers should ensure that only “reasonable” notice is required in the case of a planned use of paid sick leave.
• An employee may determine when and how much LASL he or she needs to use. You can require an employee take sick leave in an initial minimum increment of no more than two hours.19 However, to comply with the state law, you should allow employees to take LASL in an initial minimum increment of no more than two hours, and then as determined necessary by the employee (for example, an additional 15 minutes).
• Under the ordinance, you may require an employee to provide “reasonable” documentation to substantiate the need for leave after an employee has used more than three consecutive days of sick leave.20 However, you cannot require medical documentation under the state law. To comply with both laws, you should not request medical documentation.

Paying Employees for Los Angeles Sick Leave

Employers must pay employees using LASL either:21

• In the same manner as the regular rate of pay for the workweek in which the employee uses paid sick time, regardless of whether the employee actually works overtime in that workweek; or
• By dividing the employee’s total wages, not including overtime premium pay, by the employee’s total hours worked in the full pay periods of the prior 90 days of employment.

• Exempt employees are not covered by the ordinance but are covered by the state law. Exempt employees are paid as directed in the state law. See the HR Library’s Paying the Employee for the Sick Day page for more information about paying an exempt employee’s paid sick leave.

The state law requires you to pay employees for LASL no later than the payday for the next regular payroll period after the LASL was taken.

Employee Separation and Reinstatement

Unlike accrued, unused vacation or paid time off (PTO) — which is treated like wages — LASL does not need to be paid out to the employee upon separation of employment (i.e., there is no requirement to “cash out” LASL at termination, resignation, retirement or other separation from employment).22

However, previously accrued, unused LASL that was not paid out at separation must be reinstated if an employee is rehired within one year. Upon rehire, the employee must be allowed to use the reinstated LASL and begin accruing additional LASL.23

Posting, Notice and Recordkeeping Requirements

The ordinance contains posting, notice and recordkeeping requirements. You will need to pay close attention to these obligations.

Notice

The ordinance requires you to post a notice, developed by the OWS, to inform employees of their rights. The notice must be posted in a conspicuous place at any workplace or job site. You must post this notice in English and any other language spoken by at least 5 percent of the employees at the workplace or job site. The city provides notices in English, Spanish, Chinese, Hindi, Vietnamese, Tagalog, Korean, Japanese, Thai, Armenian, Russian and Farsi.24

The current Los Angeles Minimum Wage and Paid Sick Leave Official Notice are in CalChamber's Los Angeles Labor Law Posters.

• Los Angeles Labor Law Posters

The state law requires you to display a Healthy Workplaces/Healthy Families Act of 2014 Paid Sick Leave Notice. This notice is part of CalChamber's California and Federal Labor Law posters.

• California and Federal Labor Law Posters

You must display both notices.

New Employees

In addition to the posting requirements, at the time of hire, you must provide employees your company’s name, address and telephone number in writing. If any of this information changes you must provide your employees updated information within 10 days of the change.25

State law also requires you to provide a Wage and Employment Notice to Employees (Labor Code section 2810.5) at the time of hire to all nonexempt employees that includes this information and meets the obligation under the Ordinance.26 More information about the notice can be found on the HR Library's New Employee Orientation page.

You must also notify employees of their possible right to the federal Earned Income Credit.27

Payday Notice

Unlike the state law, the ordinance does not have a payday notice requirement. To comply with both laws, you must provide an employee with an itemized wage statement or other written document that notifies the employee of the amount of accrued LASL available each pay period.

Recordkeeping

You are required to retain payroll records pertaining to employees for a period of four years. The OWS must be allowed access to these records during business hours with appropriate notice.

If you do not maintain complete and accurate payroll records, the city will assume non-compliance with the record keeping requirements of the MWO.

Enforcement

The OWS enforces the ordinance.

When the OWS determines that an employer has violated the ordinance, the OWS will issue a Notice of Correction, which the employer is required to post within 24 hours of receipt. The Notice of Correction describes corrective action required.28

If the OWS determines that an employer has violated the ordinance, the OWS may issue an administrative penalty payable to the city of up to $50 per day that sick leave was unlawfully withheld from an employee. Additionally, the OWS may issue administrative fines up to $500 per day for failing to post the required notice or a Notice of Correction, failing to allow access to payroll records, failing to maintain payroll records for four years or failing to cooperate with an investigation. The OWS may issue administrative fines up to $1,000 per employee if the OWS determines an employer retaliated against an employee. If an employer previously received a Notice of Correction for violation of the same provision within the previous three years, the administrative fines may be increased by up to 50 percent from the maximum fine allowed.29 The OWS may file a civil action against an employer who fails to pay assessed amounts.30

Aggrieved employees, the city, or a person or entity acting on behalf of the public can file a civil lawsuit for any violation of the ordinance.31

Remedies for violations of the Ordinance may include: back pay and withheld LASL; penalties up to $120 per day owed to each employee for each day that the violation occurred; interest on amounts owed; and attorneys’ fees and costs. In cases involving retaliation, unpaid wages, sick time benefits and penalties are tripled. See “Retaliation” on this page.

Retaliation

The ordinance protects employees from retaliation for exercising any rights under the ordinance.32 For example, employees have the right to use LASL, file formal complaints and inform other employees of their rights.

If an employer takes adverse action against an employee within 90 days after the employee asserted rights protected by the ordinance, it will be presumed this action was unlawful retaliation. The employer will have to offer evidence to rebut this presumption.

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1. Lab. Code sec 246(r)

2. Los Angeles Mun. Code sec. 187.01(D)

3. Los Angeles Rules and Regulations Implementing the Minimum Wage Ordinance reg. # 4(H) (June 20, 2017)

4. Los Angeles Mun. Code secs. 187.01C, 187.04.A

5. City of Los Angeles Minimum Wage and Sick Time Benefits: Frequently Asked Questions (March 2017), General FAQ Nos. 8 and 9

6. Los Angeles Rules and Regulations Implementing the Minimum Wage Ordinance reg. #1 (June 20, 2017)

7. Los Angeles Rules and Regulations Implementing the Minimum Wage Ordinance reg. #1 (June 20, 2017)

8. Los Angeles Mun. Code sec. 187.04.D

9. Los Angeles Mun. Code sec. 187.04.A(D); Los Angeles Rules and Regulations Implementing the Minimum Wage Ordinance reg. #4(A)(ii) (June 20, 2017)

10. Los Angeles Mun. Code sec. 187.04.B

11. Los Angeles Rules and Regulations Implementing the Minimum Wage Ordinance reg. #4 (June 20, 2017)

12. Los Angeles Rules and Regulations Implementing the Minimum Wage Ordinance reg. #4 (June 20, 2017)

13. Los Angeles Mun. Code sec. 187.04.G

14. Lab. Code sec. 246.5

15. Los Angeles Mun. Code sec. 187.04.G

16. Los Angeles Mun. Code sec. 187.04.C

17. Los Angeles Mun. Code sec. 187.04.E

18. Los Angeles Rules and Regulations Implementing the Minimum Wage Ordinance reg. #4(E) (June 20, 2017)

19. Los Angeles Rules and Regulations Implementing the Minimum Wage Ordinance reg. #4(F) (June 20, 2017)

20. Los Angeles Rules and Regulations Implementing the Minimum Wage Ordinance reg. #4(I) (June 20, 2017)

21. Los Angeles Rules and Regulations Implementing the Minimum Wage Ordinance reg. # 4(G) (June 20, 2017)

22. Los Angeles Mun. Code sec. 187.04.H

23. Los Angeles Mun. Code sec. 187.04.I

24. Los Angeles Mun. Code sec. 188.03A; City of Los Angeles Minimum Wage and Sick Time Benefits: Frequently Asked Questions (March 2017) (No. 54)

25. Los Angeles Mun. Code sec. 188.03A

26. Lab. Code sec. 2810.5

27. Los Angeles Mun. Code sec. 187.05

28. Los Angeles Mun. Code sec. 188.06(C), (D)

29. Los Angeles Mun. Code sec. 188.08(B), (C)

30. Los Angeles Mun. Code sec. 188.09

31. Los Angeles Mun. Code sec. 188.07

32. Los Angeles Mun. Code secs. 187.06, 188.04