Governor Newsom signs paid sick leave extension and COVID relief for small businesses while visiting NIDO’s BackYard in Oakland.
OAKLAND – Governor Gavin Newsom today visited a small business in Oakland to sign legislation extending COVID-19 supplemental paid sick leave for workers, and early budget action to provide an additional $6.1 billion in tax relief, tax credits and direct grants for small businesses hit hard by the pandemic, bolstering the state’s historic COVID relief efforts and investing in California’s iconic entrepreneurial economy.
“As California continues to lead the nation’s economic recovery, today’s action deepens our commitment to supporting the workers and businesses that have sustained us all during this unprecedented pandemic and are driving our economy,” said Governor Newsom. “We’re ensuring that workers have the time they need to take care of themselves and their loved ones, expanding our nation-leading small business relief grant program and supporting the businesses whose innovation and entrepreneurial spirit help make California the 5th largest economy in the world.”
B 114 ensures employees have access to COVID-19 supplemental paid sick leave through September 30, 2022.
SB 113 provides $6.1 billion in tax credits, grants and other relief for small businesses, including nearly $500 million in tax cuts for restaurants and shuttered venues and $5.5 billion in restored tax deductions and tax credits to spur innovation.
Outlined by the Governor, Senate President pro Tempore Toni G. Atkins and Assembly Speaker Anthony Rendon in January, SB 114 by the Committee on Budget and Fiscal Review ensures that employees continue to have access to up to 80 hours of COVID-19 supplemental paid sick leave through September 30, 2022, which may be used by employees who have been advised to quarantine, those caring for COVID-impacted family members, attending a COVID-19 vaccination appointment, and more. Small businesses employing 25 or fewer workers are exempt from the legislation, which is retroactive to sick leave taken beginning January 1, 2022.
“Paid sick leave is key to ensuring workers don’t have to make the impossible choice between going to work sick or losing wages needed to pay rent and keep food on the table,” said Art Pulaski, Executive Secretary-Treasurer of the California Labor Federation. “By signing COVID paid sick leave into law today, Gov. Newsom provided critical protection to frontline workers and families across the state, and underscored California’s commitment to the essential workers that have given so much to help our communities weather this devastating pandemic.”
Building on last year’s robust support for small businesses impacted by the pandemic — including $6.2 billion in tax relief for small businesses that received Paycheck Protection Program loans — Governor Newsom today signed SB 113 by the Committee on Budget and Fiscal Review to provide an additional $6.1 billion in tax relief, tax credits and direct grants to the hardest hit businesses. SB 113 includes provisions that:
Provide a nearly $500 million tax cut for restaurants and venues: By conforming state tax policy for the federal Restaurant Revitalization Fund and federal Shuttered Venue Operators grant programs, grants received by such businesses will not be considered taxable by the state – translating into a tax cut totaling nearly $500 million over the coming years.
Restore $5.5 billion in tax credits and deductions for California businesses: By restoring business tax credits, including for research and development and the net operating loss deduction for businesses one year early, the near-term benefit for such businesses is estimated to reach $5.5 billion.
Invest $150 million in COVID-19 relief grants for California’s small businesses: SB 113 invests an additional $150 million in California’s Small Business COVID-19 Relief Grant Program to fund applicants on the waitlist – the program has provided grants of up to $25,000 for small businesses impacted by the pandemic.
From the beginning of the pandemic, the Administration has taken action to protect and support California’s workforce, including expanding access to job-protected Paid Family Leave and workers’ compensation; more resources for critical child support services for essential employees and vulnerable populations; additional weekly unemployment benefits; building a pipeline of personal protective equipment to help workers stay safe on the job; and support for employees to isolate and quarantine outside their home, among other measures.
Charles "Chip" Strebeck, President United Federation of LEOS-PBA noted “This Covid-19 Paid Sick Leave extension will help all of our Paragon Protective Service Officers in Los Angeles, San Bernardino, San Francisco Riverside, San Diego, Imperial Counties as well as all of our members throughout the state of California. Paid COVID sick leave really matters not only our members but also for all workers, throughout the state of California".