Legal Question in Employment Law in California
Discontinue Sick Leave Benefits?
Is it legal to discontinue sick leave benefits after having offered them for years? Our company can't afford this benefit any longer. Are employees entitled to the unused portion of hours not taken?
1 Answer from Attorneys
Re: Discontinue Sick Leave Benefits?
There is no law that requires employers to provide sick leave benefits. If the employer cannot afford to maintain the benefit any longer, it has the right to discontinue it, upon notice to the employees, unless there is a contractual obligation to provide it, such as through a union contract. Unlike vacation, sick pay leave does not accrue as an earned benefit. It is only payable for a specific purpose, i.e. when you are sick, and it can be lost if not used within the specified time frame. If, however, you were sick before notice of the discontinuance, you should get paid for the time off.