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The Healthy Families, Healthy Workplaces Act has a broad anti-discrimination provision that will affect your company’s policy.
California Labor Code Section 246.5(c)(1) states that “an employer shall not deny an employee the right to use accrued sick days… or in any manner discriminate against an employee for using accrued sick days….”
Enforcing a policy in a way that denies an employee additional compensation as a result of the employee using their accrued sick leave would be in violation of this Labor Code section. Therefore, if one of your employees called in sick (and had accrued sick leave available) before and/or after a holiday and you failed to pay the employee the holiday pay, you could be in violation of the anti-discrimination provisions of the paid sick leave law, unless one of the conditions below applied.
You would not violate the new law if the employee didn't:
It would be a good practice to modify your existing holiday policy to reference the limitations to the policy resulting from the paid sick leave law so that your employees are aware of their rights under the law.
Additionally, if the time off is a protected leave, such as jury duty or FMLA, holiday pay may not be withheld except under very limited exceptions in the law.
Read more about Holidays in the HR Library.