California Supplemental Paid Sick Leave Reimbursement

California Supplemental Paid Sick Leave Reimbursement - MOney behind a COVID-style mask with the words paid sick leave spelled out

Heads up small business owners!

Applications for the California Supplemental Paid Sick Leave Grant have opened up! Small businesses (according to the definition below) may apply on a first come first served basis to receive up to $50,000 to assist with any cost incurred for COVID-19 Supplemental Paid Sick Leave in 2022.

In 2022, employers with 26 or more employees were required to provide employees with COVID-19 Supplemental Paid Sick Leave (SPSL) from January 1 – December 31. Small businesses who were required to pay SPSL during that time frame are now able to submit an application to the state, providing proof of payment of SPSL, and possibly receive reimbursement. Unfortunately, it does not apply to any businesses that were not required to, but still provided SPSL to employees.

The grant award amounts are as follows:

To be a qualified small business, the entity:

1. Must be one of the following:  

  • A “C” corporation, “S” Corporation, cooperative, LLC, partnership, or limited partnership.
  • A registered 501(c)(3), 501(c)(6), or 501(c)(19).

2. Began operating before June 1, 2021.

3. Is currently active and operating.

4. Have a physical presence in the state.

5. Provided COVID-19 SPSL in accordance to the Labor Code.

6. Had 26 to 49 employees between January 1, 2021 and December 31, 2022. The employer must also: 

  • Provide payroll data and a signed affidavit attesting to the number of employees.  
  • Employers who are covered by Wage Order #16 (construction, carpenters, electricians, laborers, iron workers, plumbers, landscapers, or any other occupation listed on page 30-32) will calculate their employee count as the number of full-time employees that worked for the company, without a break in employment, for the past 24 months.

7. Shall provide organizing documents, including: 

  • 2020 or 2021 tax returns or Form 990, and 
  • A copy of official filing with the Secretary of State or with the local municipality, including but not limited to, Articles of Incorporation, Certificate of Organization, Fictitious Name of Registration, or government-issued business license.  

8. Must have an owner (or an officer if it is a non-profit) as the authorized signer on the application that is at least 18 years old.

9. Shall provide acceptable form of government-issued photo ID.

10. Only apply for the grant once even if the applicant owns multiple business entities, franchises, or locations. Only one entity from any member of a “controlled group of corporations” may apply.

If you qualify based on the requirements above, we recommend you review the Program and Application Guide provided by the California Office of Small Business Advocate (CalOSBA) for instructions on filling out the application, required certifications and documents, and a walk-through of the application portal. You can also find more information at https://caspsl.com/