1. What is California Sick Leave Payout?

Under California law, when employment ends, employees must be paid for unused accrued sick leave. The payout is calculated at the employee's current rate of pay for 50% of the unused sick leave hours.

2. How Does the Calculator Work?

The calculator uses the California sick leave payout formula:

Where:

• \( Hours \) — Unused sick leave hours accrued
• \( Rate \) — Employee's current hourly rate
• \( 0.5 \) — California's mandated 50% payout factor

Explanation: California law requires employers to pay out half of the employee's unused sick leave at their current rate of pay upon separation of employment.

3. Importance of Sick Leave Payout Calculation

Details: Accurate sick leave payout calculation ensures compliance with California labor laws (Labor Code section 246) and helps avoid potential legal issues and penalties.

4. Using the Calculator

Tips: Enter the total unused sick leave hours and the employee's current hourly rate. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Is sick leave payout mandatory in California?
A: Yes, California law requires employers to pay out at least 50% of unused accrued sick leave when employment ends.

Q2: Are there caps on sick leave accrual?
A: Employers may cap accrual at 48 hours or 6 days per year, but must allow carryover of unused sick leave.

Q3: Does this apply to all employees?
A: Most employees who work in California for 30+ days within a year are covered, with few exceptions.

Q4: What if the rate changes during employment?
A: Payout is calculated at the employee's final regular rate of pay, regardless of when the hours were accrued.

Q5: When must the payout be made?
A: Typically with the final paycheck if employment is terminated, or on the next regular payday if the employee quits without notice.