Governor Newsom Signs Impactful Legislation

Newsom Signs Legislation on Tax Credits and Paid Sick Leave

This week, Governor Gavin Newsom and the State Legislature took a number of actions impacting Biocom California members.

First, as a result of a great deal of work over the past year from Biocom California, industry partners, and member companies, the ability for companies to fully utilize both Research & Development (R&D) and Net Operating Loss (NOL) tax credits was restored. As you may know, the use of these credits was suspended at the beginning of the pandemic due to concerns about projected state budget deficits.

Second, the Governor also signed legislation reestablishing California’s COVID-19 supplemental paid sick leave program for companies having 25+ employees. In addition to sick leave they may already accrue, employees of California companies are now entitled to:
  • Up to 40hrs of supplemental leave if an employee is subject to COVID-19 quarantine, attending an appointment for a COVID-19 vaccine or booster, or encountering symptoms as a result of the same actions that would prevent them from working, experiencing COVID-19 symptoms, or caring for a family member (as defined in the law) who is quarantined due to COVID-19.
  • An additional 40hrs of supplemental leave if the employee or family member for whom the employee is providing care tests positive for COVID-19 or is awaiting test results when required to end quarantine. Proof of a positive test may be mandated by the employer before the second 40hrs may be accessed.
Please refer to SB 114 for the full provisions of the sick leave law or consult a qualified expert for its impact on your company. 

Finally, Governor Newsom announced the statewide emergency indoor mask mandate (which pertains particularly to customers) would not be renewed after February 15. Biocom California members are reminded that employees of businesses are still subject to the CalOSHA Emergency Temporary Standards, including guidance regarding face coverings effective February 16. Also, local jurisdictions still may have requirements stricter than that of the state.