California bill could extend covid patient pay.

California may soon extend the COVID-19 Supplemental Paid Sick Leave (SPSL) until the end of 2022 and provide relief to small businesses for the costs of such leave if Governor Gavin Newsom signs a bill sent to the desk on August 31, 2022. Bill (AB) 152 extends California’s Covid-19 SPSL through December 31, 2022. California’s SPSL Act, enacted in February 2022, expires on September 30, 2022.

Test requirements

The current law, which created Section 248.6 of the California Labor Code, provides 40 hours of Covid-19 SPSL for full-time employees. Employees who are not employed full-time but are scheduled to work regularly are entitled to the number of hours an employee regularly works in a week. Full-time employees may receive an additional 40 hours of SPSL if they themselves have tested positive for Covid-19 and are unable to work remotely.

Section 248.6 currently allows an employer who has received an additional SPSL to submit a positive test for a second test on or after the fifth day of leave. But AB 152 amended the law to require an employer to require a third test within 24 hours when the second test is positive. Employers are allowed to withhold additional Covid-19 SPSL from an employee who refuses to submit the tests.

The bill would require the employer to provide additional tests at no cost to the employee. In addition, employers will not be required to provide new or additional SPSLs to employees who have used the 2022 Covid-19 sick pay allocation.

Small business relief

AB 152 would establish the California Small Business and Nonprofit COVID-19 Assistance Grant Program within the Governor’s Office of Business and Economic Development (GO-Biz). The program provides grants of up to $50,000, but not more than the actual costs incurred by SPSL between January 1, 2022 and December 31, 2022, to eligible small businesses and nonprofit organizations.

The grants are available to businesses that have submitted a Covid-19 SPSL in the province and are covered by section 248.6:

• It is registered as a “C” corporation, “S” corporation, partnership, limited liability company, partnership or limited partnership or as a 501(c)(3), 501(c)(6) or 501(c). 19)

• commenced operations before June 1, 2021;

• They are currently in operation, and

• It will have 26 to 49 employees.

The bill imposes ownership limits and other exceptions to qualify for the grant relief program.

Governor Newsom has until September 30, 2022 to sign or reject the bills.

Key receivers

California’s Covid-19 SPSL extension, if approved, would continue employers’ SPSL obligations through the end of 2022. The leave extension is due to the end of similar paid leave requirements in most other states. However, the bill provides assistance to small businesses through the California Small Business and Nonprofit Covid-19 Relief Grant Program for the costs of COVID-19 SPLS. Additionally, employers are not obligated to provide additional Covid-19 SPSL to employees who have used their 2022 quota or if an employee refuses to submit to additional tests. Employers may wish to assess whether they are covered by SPSL obligations and qualify for small business relief.