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California Paid Family Leave Benefits Increase

Date: April 14, 2016
Author: Fred J Mora, III
Posted by HRConsortium in: Leaves of Absences

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Governor Brown signed a bill (AB908) this week which would effectively increase the amount of the partial wage benefit an employee receives under Paid Family Leave. The changes would go into effect January 1, 2018.

To help with understanding a little bit about what Paid Family Leave (PFL) is, PFL is a state-sponsored program under the State Disability Insurance Program (SDI). PFL provides an eligible employee with a "partial wage replacement" benefit for up to six weeks within a 12-month period while taking time off to care for a covered ill family member or child, bond with a new born child (within one year of the child's birth) or placement in connection with foster care of adoption. However, PFL is not to be considered an actual leave of absence, but simply a partial wage replacement program. Therefore, under PFL, employees do not have a right to reinstatement / job protection.

As with SDI, an employee would have submit a claim to the California Employment Development Department (EDD) for PFL consideration. The benefit amount comes out of the contributions employee's pay out of their paycheck.

So, what does the new bill bring to PFL...currently, existing PFL provides up to 55% of partial wage replacement. The new law will increase the benefit amount to either 60% or 70% (dependent on the employee's income). In addition, the new law will remove the seven-day waiting period, which before, had to be met before benefits were to be paid to the employee. Lastly, the new law would appear not to affect employer contributions, nor does it mean that the employer has to provide a leave when it is not required to do so either by law or by the employer's own policy.

A copy of the bill (AB908) may be viewed by accessing the web link below.

http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201520160AB908

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