REPORT TO THE CITY COUNCIL June 25, 2015 FROM: JEFF CARDELL, Director Personnel Services Department BY: KEN PHILLIPS, Labor Relations Manager Personnel Services Department SUBJECT ..Title ***Approve Side Letters of Agreement Implementing Provisions of AB 1522, Healthy Workplace Healthy Family Act of 2014 with Unit 1, represented by IUOE, Stationary Engineers, Local 39; Unit 3, represented by Fresno City Employees Association (FCEA); Unit 4 and Unit 9, represented by the Fresno Police Officers Association (FPOA); Unit 5 and Unit 10, represented by the International Association of Fire Fighters (IAFF), Local 753; Unit 6, represented by the Amalgamated Transit Union (ATU), Local 1027; Unit 7, represented by the International Brotherhood of Electrical Workers (IBEW), Local 100; and, Unit 13, represented by the City of Fresno Professional Employees Association (CFPEA) ..Body RECOMMENDATION It is recommended that Council approve the attached side letters of agreement which implement provisions of State of California Assembly Bill 1522, known as the Healthy Workplace Healthy Family Act of 2014 (Labor Code Sections 245 - 249). EXECUTIVE SUMMARY Effective July 1, 2015, the Healthy Workplace, Healthy Family Act of 2014, also known as AB 1522 (AB 1522), provides paid sick leave for all employees who work for 30 or more days. The new law provides the accrual of 1 hour of sick leave for every 30 hours worked which is available for use beginning the 90th day of employment. Additionally, the law allows employers to limit the accrual of paid sick leave to 48 hours, and use to 24 hours in a 12 month period. The provision of sick leave for most employees is outlined in the respective Memoranda of Understanding (MOUs) with represented units, the Fresno Municipal Code (FMC), and the Salary Resolution. However, AB 1522 expands the provision of paid sick leave to include temporary employees. BACKGROUND AB 1522 mandates that all employees who work 30 or more days in California receive paid sick leave at the rate of 1 hour for every 30 hours worked. The law does not require employers provide additional leave to employees who already earn more than the minimum required in the law, but does mandate that sick leave must be available for use beginning on the 90th day of employment. The new law also provides that the first three days of sick leave, or annual leave used in lieu of sick leave, can be used for: * Diagnosis, care, or treatment of an existing health condition of, or preventive care for, an employee; * Diagnosis, care, or treatment of an existing health condition of, or preventive care for an employee's parent (parent is broadly defined), child (also broadly defined), spouse, registered domestic partner, sibling, grandparent, or grandchild; or, * For an employee who is a victim of domestic violence, sexual assault, or stalking. In addition, the law provides for the City to reinstate up to 48 hours of sick leave to employees who terminate City employment and return within one year. To ensure timely compliance with this new legislation, the City provided notice to the respective bargaining units of the need to enter into side letter agreements on this subject. All represented bargaining units have reached side letter agreements except Unit 14, represented by the City of Fresno Management Employees Association (CFMEA) and Unit 15, represented by the Fresno Airport Public Safety Supervisors (FAPSS) who will have the provisions included in their respective successor MOUs. The Office of the City Attorney has approved the above side letters as to form. ENVIRONMENTAL FINDINGS Not applicable. LOCAL PREFERENCE Not applicable. FISCAL IMPACT The additional salary and benefit cost associated with this new legislation will be determined by the amount of hours of paid sick leave used by temporary employees. It is estimated that this benefit could result in additional salary and benefit expenses of approximately $65,000 in Fiscal Year 2016. In addition, there will be additional administrative work in implementing the provisions and some changes in the way employees take leave, there is no significant fiscal impact. Attachments: Side Letters of Agreement with Local 39, FCEA, FPOA, IAFF, ATU, IBEW & CFPEA