3 Payroll Rules Impacting California ABA Therapy Providers

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3 Payroll Rules

Payroll is the most significant cost for an ABA therapy provider. In addition to standard salaries and hourly wages, certain regulations and circumstances (like overtime) often add to payroll expenses.

These costs are even higher in California due to the state’s stringent regulations regarding payroll. According the California Chamber, the State of California has the strongest worker protection laws, with many of the laws going beyond what is required by Federal law. Three laws in particular have a particularly strong impact on payroll.

10 Minute Rest Break Rule

In California the Superior Court mandates that employees are entitled to 10 minutes rest for shifts between three and a half to six hours in length.  If the shift is longer – between six hours and 10 hours – then employees are entitled to 20 minutes of rest (or two 10 minute breaks). Finally, for shifts between 10 and 14 hours, employees are entitled to 30 minutes of rest (or three 10 minute breaks).

For further information on these rules, visit the CA Department of Industrial Relations Website.

Managing these various breaks accurately can be time consuming, and rectifying mistakes can be costly. UsingABA therapy scheduling software that automates rest break calculations and provides an accurate weighted average payroll hourly rate can be extremely helpful in dealing with this rule.

3 Hours Paid Sick Leave – California AB 1522

This law goes into effect this year and began accruing as of July 1. According to the California Department of Industrial Relations, the key provisions are to:

  • Provide accrual of one hour of sick leave for every 30 hours worked
  • Allow use of at least three work days or provide at least three work days of sick leave at the beginning of a 12 month period for each eligible employee
  • Allow eligible employees to use accrued paid sick leave upon reasonable request.
  • Show how many days of sick leave an employee has available (This must be on a pay stub or a document issued the same day as a paycheck)
  • Keep records showing how many hours have been earned and used for three years

Overtime with Multiple Wages Rates for Behavior Interventionists

Many of the challenges California ABA therapy providers face meeting the Federal and State overtime payroll requirements arise because of varying rates that behavior interventionists could be paid under.

The Overtime Law requires one and a half times the employee’s regular rate of pay for all hours worked in excess of eight hours, up to and including 12 hours in any workday, and for the first eight hours worked on the seventh consecutive day of work in a workweek. This rate increases to double the employee’s regular rate of pay for all hours worked in excess of 12 hours in any workday and for all hours worked in excess of eight on the seventh consecutive day of work.

The overtime laws FAQ document on the California Department of Industrial Relations website goes into further detail.

ABA therapy scheduling software can generally be configured to manage these overtime rules, making it easier to pay interventionists promptly and accurately.

Maintaining accurate, timely and compliant payroll in the face of all these rules adds a layer of complexity to the payroll practices of California ABA therapy providers. However, getting it right is vital for keeping employees happy and staying out of legal troubles. Your payroll staff should know these rules in-depth to ensure payroll doesn’t become a problem at your clinic.

Autism Clinic Software makes these rules easy to manage. See how with a free 30-day trial.