My employee has sick hours left in December. Do they disappear on January 1?
No. Accrued California paid sick leave carries over to the next year. You may cap accrual and cap annual use, but you cannot zero out an unused balance. The statewide floor since 2024 is 40 hours or 5 days available per year, and some cities require more.
The two limits people mix up are different things. A usage cap limits how much can be taken in a year; an accrual cap limits how much can be banked. Neither one permits wiping a balance at year end.
There is a lawful alternative: front-loading the full annual entitlement at the start of each year instead of accruing it. If you front-load correctly, carryover is not required — but you have to actually front-load the full amount, every year.
Local ordinances stack on top. A number of California cities set higher minimums, and where they do, the more generous rule applies to work performed there.
Sick leave is also different from vacation on payout. Unused vacation is a vested wage and must be paid out at separation; unused sick leave generally does not have to be, unless your own policy promises it.
Last reviewed 2026-08-09. Informational only — not legal advice. California rules change; confirm against the current source before acting.