A newly signed piece of legislation that has drawn much attention—S.B. 1661—makes California the first state in the nation to have a paid family leave program. Fortunately, you’ll have time to get ready because employees can’t begin to collect the family leave pay benefits until July 1, 2004. To help you get started, we’ve laid out the law’s main points and suggested ways to update your policies to comply with the new rules.
Join us this fall in San Francisco for the California Employment Law Update conference, a 3-day event that will teach you everything you need to know about new laws and regulations, and your compliance obligations, for the year ahead—it’s one-stop shopping at its best.
Who’s Covered?
Existing federal and state family leave laws apply to employers with 50 or more employees. But the new program—called Family Temporary Disability Insurance (FTDI)—applies even if you have just one or more employees. And all employees—whether full- or part-time and regardless of how long they’ve been at the job—are eligible for up to six weeks of paid leave during any 12-month period as soon as they begin working for you.
Qualifying For Leave
The FTDI program covers absences for the following reasons: 1) to care for a child of the employee (or a child of the employee’s spouse or domestic partner) who has a serious health condition; 2) to care for the employee’s parent, spouse or domestic partner who has a serious health condition; 3) for the birth of a child of the employee or the employee’s domestic partner; or 4) in connection with the adoption or foster care placement of a child by the employee or their domestic partner. However, an employeewill be ineligible for FTDI if another family member is available to provide the required care.
Under the FTDI program, a “serious health condition” is an illness, injury or medical condition involving inpatient care or continuing treatment or supervision by a health care provider.
No New Leave Or Reinstatement Rights
It’s important to keep in mind that the FTDI program doesn’t create new employee rights to take leave. Rather, it only sets out rules for how workers on family leave will be paid. For example, if you previously didn’t provide workers with time off to care for a domestic partner’s child—which you’re not required to do under existing family leave laws—you still don’t have to do so.The new law also doesn’t require you to hold a job open for a worker on leave. But you still must comply with reinstatement obligations under other leave laws that apply to you, including the FMLA, CFRA and pregnancy leave laws.
Collecting Benefits
The FTDI program will be funded by an increase in employee-paid SDI payroll deductions beginning Jan. 1, 2004. Eligible workers on family leave will be able to receive 55% of their base wages but no more than $728 a week. Employers will pay none of the costs. An employee who applies for FTDI is eligible for benefits only after a seven-day waiting period. The worker must use FTDI benefits concurrently with other leave, such as FMLA and CFRA leave. You can require a worker to take two weeks of unused, accrued vacation before receiving the paid leave. And if you choose, vacation time can offset the benefits waiting period.
New Notices And Certifications
The Employment Development Department has until Jan. 1, 2004, to provide you with an updated state disability notice laying out workers’ rights under the law. You’ll have to provide the notice to new employees hired on or after Jan. 1, 2004, and to each employee who takes FTDI leave on or after July 1, 2004.Also, to qualify for FTDI, employees will have to submit a new EDD medical certification form in addition to any certifications other leave laws require. We’ll let you know when it’s available.
Stay Tuned
As the effective date of this law gets closer, we’ll provide you with additional information.