Paid FMLA leave in California?

Miriam George · October 2002

Please tell me this isn't so - Another manager with our company just told me this morning that California has mandated that 12 week FMLA time be paid by the employer. Can any of you tell me if that is actually true? What a huge cost to business! I am hoping that this is either: 1) only a rumor or 2) some piece of legislation being proposed, but not passed yet.

System · October 2002

Here is an e-mail alert we sent out on the topic on 9/23/02 that should help:

=====================================
Paid Family Leave Becomes A Reality In California
=====================================

Earlier today, Governor Gray Davis signed into law a bill (SB
1661) that provides qualified workers in California with up to
six weeks of paid family leave. Under the measure, the benefit
will be funded entirely by employee contributions. Each employee
in the state will be required to contribute up to $70 a year to
a special family temporary disability fund that will be
administered by California's State Disability Insurance Program
(often referred to as SDI).

Although employers will not be funding the benefits, there
certainly will be costs. Most expect that usage of family leave
will surge as a result of this new law. As a result, many
employers will need to hire temporary workers or incur overtime
expenses to cover for the higher absence rate. There will also
likely be an impact on productivity.

Look for much more on this important law in the October 14 issue
of California Employment Law Letter, which will summarize the
Governor's decision on the many employment-related bills
awaiting his action.
==============================

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System · October 2002

A more in-depth article will appear in the Oct. 28 issue of California Employment Law Letter.

James Sokolowski
Senior Editor
M. Lee Smith Publishers

Gillian · October 2002

Here's the non-media answer. Yes, there is a mandated paid leave leave law. It goes into effect in January, 2004, and is funded entirely by employee contributions to our State Disability Insurance Fund. SDI is an employee funded mandatory insurance plan that pays a portion of wages when an employee is ill. The estimate is that all of us (California employees) will be contributing an extra $2 or so per month to fund the program. The new law provides paid leave when an employee is out due to illness of a family member or for the birth or adoption of a child. The new law provides for six weeks of paid leave. Of course there will be additional costs when an employer chooses to hire a temp while an employee is out, but the additional costs with this program won't be anywhere near the dire predictions of the media and the Chamber of Commerce - they never are.

cebudragonlady · October 2002

It does seem rather unfair that those single employees with no family still have to chip in to the tune of $ 70 each per year. There is no way that they can benefit from this law. Even myself, as a married person - as a sole provider , would find it hard to subsist on the maximum 55% of pay allowed by the law. That is a reality here in high-cost California, where a lot of people can not afford to take advantage of the law, yet are taxed for it anyways.

Gillian · October 2002

Yeah, I know. Everything that is done to benefit those with families has the unintended effect of forgetting those without families, at least I think it is unintended. The discrepancy is worse because work/family issues create so much work stress that when we react to that, as this law does, it further expands the gap. For me, it isn't a family issue, but just good health. I have been paying into SDI for about 20 years and have yet to see a dime from SDI because I don't need it. I think that is better than needing it, though.

arodriguez · October 2002

I was under the impression that this leave was going to work in conjunction with FMLA... maybe I'm wrong. If this is the case, I would think that it would also benefit singles as they, too, have the potential of becoming ill, have parents who become ill, or have children.

A. Rodriguez
Human Resource Manager

Gillian · October 2002

No, the law was passed independently of family leave, although I am sure that all of us will count this time as family leave. It will help singles who have family members who are ill, but it does not cover an employees own illness, at least it appears this way based upon the information that has been provided thus far.

Carey · October 2002

It will not cover an employee's own illness because state disability already does that. The program will also benefit single employees who may need time to care for elderly parents. I would suspect that a lot of those who harped on "family values" during political campaigns are the same people complaining about legislation passed that truly does support family values.

Gillian · October 2002

I suspect the same.

Steve McElfresh · October 2002

Folks,

Re: the question about whether it can be taken with FMLA (and more) . . .

Actually, the law says that the leave must be taking concurrently with FMLA, as well as with the CA near-equivalent, the CA Family Rights Act. However, and just to make it interesting, the criteria to qualify for the new paid leave is not exactly the same as the criteria to qualify for FMLA or CFRA leave. (Of course, you should have already guessed that the criteria for leave under CFRA are not the same as those under FMLA.)

Not that it matters. Even if the criteria were identical, it would not be possible to manage the process simply/coherently, since the new paid leave will be administered by (and eligibility decided by) a state agency, not the employer.

AND there is no employer-size threshold, so ya' all with just one or two employees out here on the left coast may need some handholding when 2004 comes around. That may be when I take our phone # on my signature line . . .

Best wishes,

Steve

Steve McElfresh, PhD
Principal
HR Futures

408.605.1870

Paid FMLA leave in California?

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