The other night at a dinner event, I happened to sit next to a business owner from California. Over the course of casual conversation, he shared how frustrated he was about the cost of sick leave for his short-term workforce. His internal HR team and even his attorney had advised him that under California law, he had to frontload 40 hours of paid sick time for every employee and pay it out upon termination.
Here’s the problem: that wasn’t true.
Under California law, employers have options. Frontloading is one way to comply, but it’s not the only way. Employers can also use an accrual system, which avoids paying out a lump sum of sick leave up front. For a company with high turnover or short-term employees, the difference between frontloading and accrual can be huge. In this case, the business owner had been unnecessarily giving away thousands of dollars in sick leave benefits because of a misinterpretation of the law.
In a five-minute conversation over dinner, we walked through the actual requirements and clarified the options. The relief on his face said it all, what had been a major financial drain turned into an immediate cost savings.
And this is exactly why companies turn to HR consultants. Employment laws are constantly changing, and the nuance matters. Internal HR teams and (non-employment law) legal counsel play important roles, but they don’t always live in the weeds of compliance the way we do every day. Our job is to keep track of the details, the exceptions, and the practical realities of implementing policies across different states, industries, and workforces.
For business owners, that expertise translates into:
- Cost savings – by avoiding unnecessary payouts or compliance mistakes
- Risk reduction – by ensuring policies align with current laws and enforcement standards
- Time savings – by cutting through the complexity and getting straight to what matters
The California sick leave example is just one story, but it highlights a bigger point: compliance isn’t just about following the law—it’s about understanding it well enough to make smart business decisions. Just like that California business owner, you may be one conversation away from saving thousands.