You're right it is sick leave. I was referencing a letter our lawyer sent to my boss. What he meant to say was we should lump all the wages that are not strictly hourly wages or salary into a catagory called paid time off (PTO).
The following is from:
http://www.dir.ca.gov/dlse/Paid_Sick_Leave.htm "What happens when an employer has its own Paid Time Off (PTO) plan?
The new law establishes a minimum requirement, but an employer can provide sick leave through its own plan or establish different plans for different categories of workers. However, each plan must satisfy the accrual, carryover, and use requirements of the law or put the full amount of leave into your leave bank at the beginning of each year in accordance with the PTO policy. If an employer provides a policy which exceeds the minimum requirements, including providing a specific cap, the policy must be clear as to the additional terms that apply to their employees."
By lumping all of our vacation days, sick days and bonuses into paid time off or paid leave we don't have to change anything procedurally. We just need to change our personnel policy manual.
(sorry about calling it vacation pay instead of sick leave)