California Updates Its Paid Family Leave Law with a Clean-Up Bill

Posted on: July 12, 2018 0

BY MARTI CARDI, VP-PRODUCT COMPLIANCE & GAIL COHEN, DIRECTOR-EMPLOYMENT LAW/COMPLIANCE

 

NOTE TO READERS:  This topic was originally addressed in this blog on July 12, 2018.  That post sparked some questions about the California Paid Family Leave program that make it appropriate to issue this revised article.  The content of the original post was accurate but is now supplemented with additional information in this version, specifically relating to the two weeks of PTO an employer can require an employee to use before taking California PFL.

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Today’s post is not exactly earth shattering news, but we promise to keep you up to date on developments in leave laws and accommodations.  California has enacted a bill that makes a minor adjustment to the state’s paid family leave program – mostly a “technical correction” really. (CA A 2587)

The state family temporary disability insurance program, also known as the paid family leave program, provides wage replacement benefits to workers who take time off to care for a seriously ill family member or to bond with a minor child within one year of birth or placement of that child.

Existing California law allows an employer to require an employee to use up to 2 weeks of earned but unused vacation time before, and as a condition of, the employee’s initial receipt of paid family leave benefits during any 12-month period. Prior to January 1, 2018, California imposed a 7-day waiting period before employees could begin receiving benefits for a covered absence and the employer could apply that vacation pay to cover the waiting period. The 7-day waiting period for these benefits was eliminated as of January 1, 2018, by a prior law.

This new California law now eliminates the application of vacation leave to the waiting period, consistent with the removal of the 7-day waiting period for these benefits on and after January 1, 2018. After all, you can’t apply the employee’s vacation pay to the 7-day waiting period because there no longer is a 7-day waiting period.  Technically the effective date is January 1, 2019, but as there has been no waiting period since January 1, 2018, there has been nothing to which to apply that accrued vacation.

Employers are still able to require employees to use up to two weeks of accrued vacation or PTO, if available, prior to receipt of PFL benefits.  The use of such accrued paid time off is in addition to the 6 weeks of state or voluntary plan paid family leave benefits, which will follow the 2 weeks of PTO.  The statute refers to use of accrued “vacation” but material from the California Employment Development indicates that this includes an employer’s broader paid time off benefit as well.

Matrix can help!  Matrix is a leading provider of services for administering California State Disability Insurance and Paid Family Leave voluntary programs.  Ping us for more information at ping@matrixcos.com.

California Expands CFRA Bonding Leave Coverage

Posted on: October 18, 2017 0

By Marti Cardi, VP-Product Compliance Gail Cohen, Director-Employment Law/Compliance

California has enacted the New Parent Leave Act to amend the California Family Rights Act (CFRA).  Effective January 1, 2018, employers with 20 or more employees will be required to provide 12 weeks of leave for bonding following the birth, adoption, or foster placement of a child.  To be eligible, an employee must have worked for the employer:

  • For 12 months of service;
  • For 1250 hours in the 12 months immediately prior to the start of the requested leave; and
  • At a worksite with 20 or more employees within 75 miles.

Currently, CFRA applies only to employers with 50 or more employees, and the third eligibility requirement is employment at a worksite with 50 or more employees within 75 miles.  The new law will extend coverage to employees of smaller employers and to employees of large companies who work at smaller worksites.

The law does not apply to an employee who is subject to both CFRA and the federal FMLA, so an employee cannot double-dip on leave rights just because the employee is employed at a worksite that qualifies by having both 20 or more and 50 or more employees within 75 miles.

Regulations Pending.  The Act does not yet have supporting regulations.  However, it directs the Fair Employment and Housing Council (which promulgates regulations that implement CFRA and other California anti-discrimination laws) to incorporate existing CFRA regulations by reference to govern leave under the Act to the extent that those regulations are within the scope of, and not inconsistent with, the Act.

This means that topics on which the Act is silent are likely to be interpreted and governed by existing CFRA regulations.  Examples include CFRA regulations that require employees to take bonding leave within one year of the new child’s birth or placement and that require employers to allow intermittent bonding leave in minimum two-week increments plus two instances of shorter leave.

Additional details:

  • As with CFRA, the New Parent Leave Act requires employers, upon or before the commencement
    of leave, to provide the employee a guarantee of reinstatement to the same or a comparable position
    after the leave.
  • If both parents work for the same employer:

o   The employer can limit the total amount of bonding time for the parents to a
combined 12 weeks; and

o   The employer may but is not required to permit the employees to take bonding leave
at the same time.

  • The employee may elect to use accrued vacation pay, paid sick time, other accrued paid time off,
    or other paid or unpaid time off negotiated with the employer, during the period of parental leave.
  • The employer must maintain and pay for coverage under a group health plan at the same
    level and under the conditions that coverage would have been provided if the employee had
    continued to work rather than take leave.
  • The New Parent Leave Act does not affect an employee’s ability to take pregnancy disability
    leave is the employee is otherwise qualified for that leave.
  • The new law authorizes a parental leave mediation pilot program. Under the program, within
    60 days of receipt of a right-to-sue notice related to an alleged violation of the new Act, an
    employer may request all parties to participate in the department’s Mediation Division Program.
    In such case, the employee cannot pursue a civil action until the mediation is completed.  The pilot
    program is set to expire on January 1, 2020.

The text of the New Parent Leave Act (California Government Code § 12495.6) can be viewed here.

MATRIX CAN HELP! Questions about how legislative changes or court opinions could impact your business?
Want to learn more about our benefits and absence management solutions? Matrix provides leave, disability,
and accommodation management services to employers seeking a comprehensive and compliant solution
to these complex employer obligations. We monitor the many leave laws being passed around the country,
watch the courts and governmental agencies, and specialize in understanding how they work together.

For leave management and accommodation assistance, contact your Account Manager or local
Reliance Standard Sales Representative or contact us at ping@matrixcos.com.