Many California employees are underpaid for sick leave without realizing it. Sick pay laws are designed to ensure that workers receive fair compensation when they need time off due to illness. However, employers often miscalculate or misapply these laws, leading to employees losing out on the wages they are entitled to. Check your pay stub—your employer may owe you more than you think.
How Sick Pay Is Calculated
For hourly employees, California law requires employers to use one of two methods:
- Regular Rate of Pay – This calculation includes all forms of compensation earned during the workweek in which sick leave is taken. This means not just your base hourly wage but also any additional earnings, such as non-discretionary bonuses, shift differentials, and commissions.
- 90-Day Lookback – This method averages your total wages (excluding overtime premium pay) over the last 90 days, then divides that total by the number of hours worked. This is particularly important for employees with variable schedules or fluctuating pay.
For salaried employees, sick pay must be calculated in the same manner as other forms of paid leave. Employers must ensure consistency in how they handle paid time off across different types of leave.
Common Employer Mistakes
Employers frequently miscalculate sick pay, often to the detriment of employees. Some common mistakes include:
- Failing to include non-discretionary bonuses or commissions when calculating the regular rate of pay.
- Using only the base hourly wage and ignoring shift differentials or incentive pay.
- Incorrectly averaging wages over an improper time period, leading to a lower sick pay rate than what is legally required.
- Failing to update pay calculations to reflect recent raises or bonuses that should be included in the calculation.
Even small miscalculations can result in significant lost wages over time, especially for employees who frequently use sick leave. If your employer has consistently underpaid your sick leave, you may be entitled to recover the difference plus potential penalties.
Why This Matters
Sick leave is a legally protected benefit in California, and being shorted on pay can impact not only your finances but also your ability to take time off when needed. Many employees don’t challenge incorrect sick pay because they assume it’s a minor issue, but small underpayments can add up over time. If your employer is miscalculating sick pay for you, they are likely doing the same to others, which could indicate a broader wage violation.
What If You Suspect a Problem?
If your sick pay seems lower than expected, it may be helpful to review your pay stubs and how your employer calculates wages. Because pay calculations can be complex, it’s important to review your pay stubs and understand your rights. If something doesn’t add up, you may want to consult an employment attorney who can help determine whether you are being paid correctly.