In order to attract competent people to serve the organizations, employee benefits would help the employers, in addition to the wages and compensation. Under the California laws, the following benefits are in force for the employees.

Employers have the right to set the number of days for vacation of its employees, and the employees are eligible for the benefit. Also, employers are permitted to decide the things such as – when and how long the vacation could be taken by the employees.

Employers in California are not obliged to give their employees, time off, for holiday. Common holidays in California include – New Year’s Day – January 1, Memorial Day – observed on the last Monday in the month of May, Independence Day – July 4, Labor Day – first Monday in the month of September, Veterans’ Day – November 11, Thanksgiving – fourth Thursday in November, and Christmas – December 25.

Employers need to give clarity on the consequences whether an employee is required to work on a day designed as a paid holiday.

Personal days
Personal days are those days, when an employee wants a holiday for a birthday or an anniversary or any event not connected with a particular general event. It depends on the employer’s definition for personal day – whether it should be paid at the termination of the employment relationship.

Sick leave
All California employees must be a member of State Disability Insurance Plan (SDI), which employees pay through payroll deduction; and employers are required to entertain paid sick leave to their employees as per the existing rules. An employee who works in California for 30 days or more, and on or after 1st July is eligible to get paid for the sick leave.

Paid Time Off
Paid Time Off (PTO) can include sick leave, personal days, and floating holidays. Bringing everything under PTO allows the employees to avail a few days leave for illness, holidays, and for undertaking other personal needs.

Employers should be aware that PTO is considered to be a vacation by the government. Therefore, employers must pay for the entire amount for accrued unused PTO, at time of termination of the employer.

Medical, dental, vision
It’s not mandatory for the employers in California to provide health insurance for their employees. Employers who do not want to opt for such benefits could participate in some of the group plans.

Retirement benefits
In California, employers may offer retirement benefits. However, the law here does not mandate them to extend retirement benefits to their employees. The retirement benefits offered, if any, must be clear to the employees. California courts can enforce the terms of retirement plans.
By following the norms of the retirement fund’s management, accounting information should be let known to the employees.

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