On the secret monitor when we go live i see the with the microphone savings accounts r settinging eave clocked yeah. Ive logged us all in. Okayeave clocked yeah. Ive us all in. Okay. All right. Live from city hall it is the weekly installment Small Business commission. Youre having fun, huh . I love this i secretly want to be a dj in college. Well be spinning youre favorites this afternoon first, we have business to take care of whats going down there. Yes. Okay i thank you. Ive been trying to get the recording started i as you may know how to get inaudible nothing okay. Thank you. All right. So this is the now the Small BusinessCommission Meeting it is monday, november 23, 2015, and the start time is 211 id like to thank sophisticated for recording and making our meetings possible to the broader public audience item number one is call to order roll call. Yes. Please. Commissioner adams commissioner dooley commissioner dwight commissioner ortizcartagena commissioner yeeriley commissioner toursarkissian mr. Vice president we have quorum all right. On item 2. For item 2 today, were going to have a recognition for the commissioner white to the Small Business commission but she has injured home share and not able to attend well continue that to the next meeting. Sound like goods good general Public Comment to comment on matters within the suggested items for the commission future consideration. Any members of the public that would like to comment on anything not on today is agenda if so come on up seeing none, Public Comment is closed. Item for a presentation and discussion on the paid sick leave policy if you recall in july or august the commission heard reviewed the two various sick leave policies with the local law and the state law and the commission put forward a letter to the office of labor standards and enforcement so what we have today a presentation by ellen of the office of standards and labor enforcement i really want to actually commend the office of labor standards enforcement to addressing the complexities after we submitted the letter to the office of labor and standards enforcement a meeting and realized there were more issues of concern to look at in terms of the over lay of the two laws so they really expect a great deal of time really diving into the consideration in terms of our niece and concerns for the Small Businesses and i think have come out with a very thoughtful and well considered list of frequently asked questions so i want to expend any preparation to the office of labor and standard enforcement for the effort. Thank you thanks regina for that introduction im ellen love the Senior Administrative person from the office of labor standard and enforcement i need a moment for the mike and share im here with another colleague that will correct me if i make mistakes and the residents technological genius for technical problems so, yeah thank you regina for bringing this issue to your attention we had sort provided general notice to the businesses in state law july 1st but yourself concern and questions prompted us to go back to the state so ask questions and get clarifies and legal guidance on the specific requirements of the state law it is working now. Thanks so yeah, so we got some additional input and taken a lot of time and effort to look at what it means for Small Businesses to try a comply with both laws to give you a little bit of background the policy context is that San Francisco voters passed the nations first paid sick leave law in 2006 naerlg a decade ago a successful policy studies have shown a couple of years after the law passed the bmws supported it and a model for the nation so since San Francisco passed that first sick leave policy in 200620 cities and counties and four states and washington, d. C. Have passed the laws in the last few years almost entirely so San Francisco is a leader in this policy arena what has created complexity that california passed the sick leave policy in 2014 the California Healthy workplace and family act took effect on july of this year 2015 and while San Francisco was the leader when california got around to the law as their usual many cooks in the kitchen and many details that got added in and it the legislation that come out of the stat legislator differences from the local law so the basic come compliance framework the general were looking for Small Businesses and all businesses in San Francisco is that the state law didnt super succeed the local law San Francisco employers must comply with both laws and the local law the San Francisco sick leave is important captains i have and other areas the state law is for substantial so the employers have to comply with the more xavens version today walk you through so you understand where San Francisco businesses have to comply and what the issues and complex that are a bunch bear with me as i walk through ill start with the permitted uses of the paid sick leave and the first thing i want to say the similarities in both laws you can use it for a wide range for youre own medical needs when our circumstance sick or a doctors appoints and use it for the Family Members that is broadly defined with legal guardians. Siblings and grandparents and grandchildren this includes botanical adopted and foster care for the relation and the difference between the two laws regarding how you can use the paid sick leave law and for whom under the local law the San Francisco paid sick leave ordinance there is a category of the designated person you can pick someone anyone in the world who use the sick leave maybe my nephew but is not on the list of people that can use the sick leave state law didnt have this provision this case because the San Francisco is more generous the employees have to follow the San Francisco law the state law allows employees who suffer from or victims of Domestic Violence or stalking to use that that calls it out for sick leave and San Francisco law didnt have any specific so that is an area with the state law is more substantive the state law also says you can use paid sick law for on apprentices to the law that when i have someone i can use my sick leave to care for them when theyre sick and similarly the state law also allows you to take paid sick leave for the inlaws or the domestic partner not included that the local law so the state law applies that is sort of a starting place to see where the details one law is are captain active and the category applies now im going to get into how businesses provide and circulate the paid sick leave to the employees ill say this the most trick it parts of comparing the laws their just different they didnt mesh yeah, ill walk through so you can understand to see what were doing as an Enforcement Agency so under this San Francisco local law the accrual and use the employees accrue one hour of sick leave for thirty hours of worked that is just a standing approval rate and again, arouse after 90 days of work and so under the San Francisco law and the caps on accrual there is a 40 hour for employers with fortune 10 employees and 72 for all other employers and the key points about that the caps are not annual caps not the amount of sick leave in a year but a floating cap and employees can use any sick leave approved i learned or learn visually so i tried to map this out as you can see hopefully to visualize this is a chart of so which hours are orchid on the bottom and paid sick leave accrued of the vertical act sister for the chunk of time a new employee the example a new employee at a Small Business with fewer than 10 employees the accrual is 40 hours thats the relevant number because this is a new employee for the first 90 calendars days they dont accrue and start to accrue at one hour of sick leave for every thirty hours of work and what they hit the 40 hour cap it levels off they keep the 40 hours accrued for a while and in this example i show their child is sick they take. I think the day of 8 hours of paid sick leave the amount is dropped and starts to accrues that is meant by a floating cap it is not an amount in the year it is as soon as possible you use it it gets back up to the cap the other thing i want to point out there is you cant see on the screen a gray line at 200080 hours that is one year you dont zero out at the end of the year it accrues that is the San Francisco law i have another little chart for the ill put up for a moment for a Large Business with 10 or more employees for them the privilege is the stage but the cap is 72 hours so you accrues up to 72 hours and an example i put up there the employee never gets up to 72 hours they use that will brown they get to the cap and immediately starts to cap again do you have any questions does make sense okay. Great. Thanks. Okay. Before i get into the state law i want to like put like an asterick above any head im not an expert in the law the standard enforcement law if you have delayed questions i would refer you to them but ill give the overview and in the qs relief published in the state law the employers choose from methods for the sick leave there are at least two different types of accrual different ways it accrues and up front the employees get a chunk of sick leave and use it during the yearly ill talk about two of these ill talk about the first accrual method under the state so unlike the local law the employees get sick leave on day one the day they start employment the one hour for thirty hours of work and accrues up to a 48 hours cap but theres a difference between accrual and usage; right . So while youll accrue on day one only use the sick leave on and on offering 90 days and is employer can limit our use of sick leave a year to twentyfour hours so again, ive tried to put 2, 3, 4 this in fwrafk form it is look at easier yeah, ill stick to the first accrual under the state law so you see the employees begins accruing right at the beginning of employment starting at hour zero no waiting are period this is a new employee ill assume 0 someone that is working fulltime and it dpeefrnt the size of the business under the destroying i state law no carve out for Small Businesses or larger businesses one system so the employee begins accruing and then in this example i mean, ill show the 3 a sick days and then accruing but the context it in the state law the employer can limited their use for 3 days arrest and for the rest of year they cant use anywhere and at the end of this year showing with the gray line the 2080 hours theyll begin to use it and ive shown the usage to make the motto a medical appoint after the start of second year thats the accrual under state law any questions. Yeah. So if we take the San Francisco ordinance as to the other than the floating component of it huh . The state law seems to be more favorable to the and the accrual about the limitation of the 3 days yeah. Under state law it seems to me that the employer has to comply with state law as to the first point that you raised in our as to the capping and the floating has to comply with the City Ordinance is that your understanding. Thats correct ill speak speak to another one yeah. Which is another option which didnt require the accrual at all so that one is ill show you you agree. You agree. We can collapse the two in equal of years in the city and county of San Francisco and the state law is more favorable with the exception of the floating issue that you raised will that will a favorable more favorable treatment for employees . I think the limitation on the number of dazed taken is very sixth one. Of the ordinance you agree with that so the ordinance is more favorable the city is more favorable. Correct. Yet the rest as to state law as stated as provided in state law is more favorable. Thats correct lets looking at the method and get both it a little bit more youre on the right track the accrual is more favorable for the Small Businesses with the exception of the limitation on the 3 days and is floating gap. Thats met at the end of the presentation as to how to do it. Were getting there yeah, so the state law has the second method this is the one weve gotten the most questions the up front method and what were calling the up front method they dont call is that technically not an accrual system it is a lump sum given to the employee of the sick leave at the beginning of the year the employer provides 24 hours or 3 days up front at the beginning of year with no carry over to the next year required by a twentyfour hours then at the given of the next year this is what it looks like in any graphic form thank you for bearing with me with my hostile algebra so the twentyfour hours is provided up front at again, this is for a new employee and the soomgs this period of time is working fulltime at the start twentyfour hours and spend it down this example the individual uses two days and uses a little bit more towards the end of the year and 6 hours of paid sick leave at the end of the year and then the employer just gives them the difference between the sick leave and the twentyfour hours to bump them up to the twentyfour hours for the beginning of the next year and state law allows you to define that is what weve heard about the up front method a lot of businesses have asked how to combine the citys law with the up front method that is what ive taken a stab at trying to describe and combine. Well, the benefit if you have to pay outs unissued sick leave if someone leaves our company youre cap the maximum pay out to the maximum you can use; right . It this didnt allow you to productive over the maximum none can quit and have more than the maximum you can use in the accrual youll awe country more than you can use and technically pay out the accrual if someone quits that allows to you pay is forward im giving it now use it or reup you new year and no exposure more than a full year with but my calculation is large. Commissioners it is only time off for vacation youre required to pay out. You dont have to pay out sick leave no benefit other than i mean probable simpler for the up fronts. For cities not would sink detergent but in San Francisco. Its mute because the San Francisco law preys. Yeah. He read this. Is that youre understanding . Yeah. From what ive heard from business inquires many businesses outside of San Francisco are thought the up front method to be simpler. Not in San Francisco. Not necessarily in San Francisco but we have gotten very specific. Yes. If the chamber of commerce and from this commission about the how the up front method fits with the San Francisco paid sick leave law i tried to take a stab of what that looks like any more questions about the state law before we go on. That i can answer. Okay. Lets act a look at how they fit together. And have more of a discussion so the paid sick leave accrual and the state up front method together here ill fix that our office if that we realized last week to treat any amount provided up front as an advance on what you accrue on the local law you can provide twentyfour hours but then at some point the employee will have more twentyfour hours under the local law you can have them accruing at this point. The accrual will catch up with you. Yes. Thats what that looks like in the graph and this is i started with a simple example the employee didnt use any it is simple the doted red line shows what that employee has in there is california sick leave and it catches up and starts awe cu. This is the credit. Exactly. For the youre stuck with the accrual and make an Early Advance and not a cap. Thats correct. What i saw attorneys said the benefits they get to accrue from day one that is really besides the provisions of why you can use it, it is all schematics of the infrastructure thats all okay. State method one. No, i dont have that i can go back and do that i looked at the up front because of specific questions regarding that method but i couldnt and. If i may take a moment to interject for employers with under 10 employees there was a question about the up front method but the state having the 48 hours accrual in San Francisco there is a 40 hour accrual for employers under 10 i think the question came up about for employers with the up front method then as a means of complying with the state as opposed to the accrual then how will that overlay with the San Francisco paid sick law for businesses over 10 employees because the the accrual is 48 hours our accrual is 72 hours that question is less of a question for businesses over 10 employees does make sense just to jog our memory it was sort of a question after is 8 hour accrual. The 8 hour vetted is for relevant for Small Businesses than businesses over 10 employees that may make sense maybe for smaller businesses but not for ours. You can put method one overlay youll have to follow the curve that is most favorable to the employee and give the times and then the employer has just a little bit of the state method is more favorable from the get go then until they merger so this is really an administrative matter im going to go with the all in on the beginning not worry about the accrual and know i have to starts accruing i have to catch with the curve and unless i want to you know keep it below the immediate but