Under California’s Healthy Workplaces, Healthy Families Act, an employer can pay sick leave at the employee’s “regular rate of pay” for that week, which is based on a weighted average of all rates the employee earned in that workweek. Employers can also calculate paid sick time for exempt employees in the same manner as wages are calculated for other forms of leave.
An employer also has the option of a 90-day “look back” calculation that requires 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.
For employees who earn commissions, piece rates or bonuses, see the examples on how to calculate the regular rate of pay provided in the California Division of Labor Standards Enforcement Manual, Section 49.
Read more about Paying the Employee for the Sick Day in the HR Library.