California State Grant Program for COVID-19 Supplemental Paid Sick Leave

The COVID-19 State of Emergency may be over but many employers are still feeling the economic effects of the pandemic.  In 2022, when COVID-19 Supplemental Paid Sick Leave (SPSL) was extended for the final time, the legislation also provided for a grant program for certain businesses to offset the costs of providing SPSL.

The State of California has a website where eligible businesses may apply for the grant.

Who Is Eligible?

A “qualified small business or nonprofit” must satisfy the following criteria to be eligible to receive a grant award under the program:

1. Must meet the definition of a qualified small business or nonprofit as confirmed by the California Office of Small Business Advocate (CalOSBA) or fiscal agent through review of revenue declines, other relief funds received, credit history, tax returns, and bank account validation.
   1. Must be one of the following:
      1. A “C” corporation, “S” corporation, cooperative, limited liability company, partnership, or limited partnership.
      2. 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. Had 26 to 49 employees between January 1, 2021, and December 31, 2022, and must provide payroll data and an affidavit, signed under penalty of perjury, attesting to that fact.
   5. Has provided COVID-19 Supplemental Paid Sick Leave pursuant to the requirements of Sections 248.6 and 248.7 of the California Labor Code.
   6. Must provide organizing documents, including a 2020 or 2021 tax return or Form 990, and a copy of official filing with the Secretary of State or with the local municipality, as applicable, including, but not limited to, Articles of Incorporation, Certificate of Organization, Fictitious Name of Registration, or government-issued business license.
2. Must have an owner – or in the case of a nonprofit, an officer – identified as the authorized signer on the application that is at least 18 years of age.
3. Must be able to provide an acceptable form of identity verification through an acceptable government-issued photo ID.

What Can Funds Be Used For?

Eligible businesses may use the funds to reimburse for SPSL provided between January 1, 2022, and December 31, 2022.  Businesses will be required to provide proof of employee payroll records that verify all SPSL provided by the business was pursuant to the state requirements under Labor Code sections 248.6 and 247.7.

For additional information on the application process, eligible businesses should review the State’s application portal at caspsl.com.

If you have additional questions about California SPSL or related issues contact a Jackson Lewis attorney to discuss.