Title
Introduction of Ordinance Amending the Alameda Municipal Code by Deleting Section 25-2.4 Concerning the Accrual of Sick Leave By Certain Part Time Employees. (Human Resources 2512)
Body
To: Honorable Mayor and Members of the City Council
From: Elizabeth D. Warmerdam, Interim City Manager
Re: Introduction of an Ordinance Amending the Alameda Municipal Code by Deleting Section 25-2.4 Concerning the Accrual of Sick Leave by Certain Part Time Employees
BACKGROUND
The City of Alameda Municipal Code section 25-2.4 (“Sick Leave Policy for Eligible Part-Time Employees”) currently provides paid sick leave to part-time employees who have worked continuously for the City for 12 months during the calendar year. This leave provides five working days during any 12 month period, based on the average number of hours worked. For example, if an employee worked an average of 20 hours per week, they would be entitled to 20 hours of paid sick leave after 12 months of employment. Under the current Municipal Code, the part-time paid sick leave does not roll over to the subsequent year.
Assembly Bill 1522 (“AB 1522”), enacting the Healthy Workplaces, Healthy Families Act of 2014 (“Paid Sick Leave Law”) entitles an employee, who has worked 30 days in California, to paid sick leave. Under AB 1522, a paid sick leave program cannot provide less than 24 hours or three-days of paid time off per calendar year. It also allows accumulated sick leave to accrue from year to year for part-time employees, except those that are seasonal. The new law, however, allows an employer to limit employees’ use of sick leave to 24 hours, or the equivalent of three days, whichever is greater, in each year. The new law does not apply to employees who are covered by a collective bargaining agreement, nor to CalPERS Retirees. The law was effective on January 1, 2015 and the implementation of the accrual paid sick leave provision will go into effect retroactively to July 1, 2015.
DISCUSSION
In reviewing the requirements under AB1522, the City’s current Sick Leave Policy for Eligible Part-Time Employees does not meet the requirements under AB1522. The new Paid Sick Leave Law is more generous in some respects to part-time hourly employees than Municipal Code Section 25-2.4. The new law allows part time employees to begin accruing paid sick leave after only 30 days, rather than after 12 months as the Municipal Code currently requires, and it allows for sick leave to accrue and roll over year to year. It also includes far more part-time employees since only 30 days of work is required, rather than the 12 months required by the existing Municipal Code. On the other hand, the new law allows employers to limit the use of paid sick leave to three days or 24 hours, whichever is greater. The City currently provides up to five, days depending on the average number of hours worked.
Incorporating the requirements of AB1522 into the city’s existing Municipal Code could not be easily accomplished without a complete overhaul of the Municipal Code because the new law and the Municipal Code conflict in key respects. Furthermore, AB1522 is still undergoing subsequent “clean up” legislation due to its complexity and current ambiguities.
Therefore, staff recommends deleting Section 25-2.4 from the Municipal Code and instead following AB1522 requirements through administrative procedures, with additional adjustments to protect current part-time employees’ existing sick leave benefits and ensure the enhanced benefits are provided by the new law. Effective July 1, 2015, the City will follow the requirements of AB1522, with the recommended adjustments.
Policy overview and comparison:
|
|
AB1522 |
Existing Municipal Code 25-2.4 |
Proposed Administrative Procedure |
|
Maximum Annual Hours |
24 hours, equivalent 3 days |
5 day equivalent, based on average hours worked |
28 hours, equivalent 5 days |
|
Sick Leave Start |
After 30 continuous days worked |
After 12 months on payroll |
After 30 continuous days worked |
|
Leave Accrual |
1-hour of paid sick leave for every 30 hours worked, or a frontload of 24 hours (one work week as defined by AB1522) at the date of hire. |
Does not accrue |
1-hours of paid sick leave for every 30 days worked, or a frontload of 28 hours (one work week as defined by the City’s part-time policy) at the date of hire. |
FINANCIAL IMPACT
There is no financial impact from passing this Ordinance removing Municipal Code Section 25-2.4. However, AB 1522 will have a financial impact when implemented. Although AB 1522 does not require any payout of the sick leave at the time of an employee’s separation, the larger amount of sick leave granted by AB1522, if used, and coupled with the need to backfill a position when an employee calls in sick, could have a negative financial impact. In addition, there are additional tracking requirements which will increase the administrative burden on those departments tasked with implementing the new law.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
Deleting Section 25-2.4 from the Code will not necessitate any other changes to the Municipal Code.
ENVIRONMENTAL REVIEW
Adopting this ordinance is not subject to environmental review in that it is not a “project” for purposes of the California Environmental Quality Act (CEQA). The ordinance is an organizational or administrative activity of the City that will not result in direct or indirect physical changes in the environment. CEQA Guidelines, section 15378 subdivision (b)(5).
RECOMMENDATION
Introduction of an ordinance amending the Alameda Municipal Code by deleting Section 25-2.4 concerning the accrual of sick leave by certain part time employees.
Respectfully submitted,
Stephanie Garrabrant-Sierra, Administrative Services Director
By,
Monica Selles, Human Resources Analyst II
Financial Impact section reviewed,
Elena Adair, Finance Director