SF Paid Sick Leave Ordinance

What it is

San Francisco was the first U.S. city to mandate paid sick leave (2007). The Paid Sick Leave Ordinance covers every employee in San Francisco — regardless of full-time/part-time/temp status, immigration status, or how long they've worked. It also has the broadest family-member definition in the country: 'designated person' can be anyone the employee selects annually.

Who it applies to

All employees who perform work in San Francisco, including out-of-state workers temporarily in SF for events or pop-ups. Covers full-time, part-time, temporary, and seasonal. Independent contractors are not covered (but misclassification is heavily enforced).

What compliance looks like

1. Accrual rate. 1 hour of paid sick leave per 30 hours worked, beginning on day 1.
2. Caps. Up to 72 hours/year for employers with 10+ employees. Up to 40 hours/year for employers with fewer than 10. Unused leave carries over but can't exceed those caps.
3. Usage. Allowed for the employee's own illness, illness of a family member (including domestic partner, child, parent, sibling, grandchild, grandparent), or one annually-designated person (called 'designated person' — a friend, neighbor, anyone).
4. Notice. Employer can require up to 7 days advance for foreseeable absences. For unforeseen, no advance notice required.
5. Posting. Post the official SF notice in English + Spanish + Chinese + Tagalog in the workplace.
6. Records. Keep 4 years of accrual + usage records.
7. Front-loading. Allowed instead of accrual — grant the full annual amount on day 1 of the benefit year.
8. Cash-out at separation. Not required, but if your policy doesn't carry over unused leave, you must cash it out.

Penalties for non-compliance

Failure to provide accrued sick leave: 3× the amount owed + administrative penalty.
Failure to post notice: $500 per occurrence.
Retaliation: full reinstatement + back pay + $1,000 minimum statutory damages.
Failure to keep required records: $500 per missing record category.

SF OLSE actively investigates complaints. Settlement amounts are often modest individually but class action exposure can run into 6 figures for mid-sized restaurants.

How Panko helps

Panko tracks SF OLSE bulletins and rule interpretations. The 'designated person' rule has been clarified twice since the law took effect — Pro members got a push within hours each time. Our SF Pro Tips also flag enforcement waves (OLSE periodically focuses on specific industries; restaurants were the focus in early 2025).

Sources

• SF OLSE — Paid Sick Leave Ordinance

Pro members get a push the moment this rule changes — new rate, new guidance, new court ruling. Plus city-specific Pro Tips that flag the compliance windows that matter for your operation.