Last year, California became the first state in the nation to create a paid family leave program, making all employees eligible for up to six weeks of paid family leave during any 12-month period. As the implementation dates for this program near, here’s the scoop on some new developments.
EDD Mails Withholding Information, Brochures
An increase in employee-paid SDI (State Disability Insurance) payroll deductions beginning Jan. 1, 2004 will fund the paid family leave program. The Employment Development Department (EDD) planned to mail information to employers about the withholding rates in November.
Also, as part of this paid family leave program, employers must provide an informational brochure about the program’s benefits to all new employees hired on or after Jan. 1, 2004, and to each employee who takes paid family leave on or after July 1, 2004. The EDD planned a mailing of the brochure to employers in November.
If you haven’t received the rate notice or brochure, be sure to immediately contact the EDD (see below for contact information). Employee claim forms for paid family leave benefits will be available from the EDD beginning in March 2004.
Our HR Management & Compliance Report: How To Comply with California and Federal Leave Laws, covers everything you need to know to stay in compliance with both state and federal law in one of the trickiest areas of compliance for even the most experienced HR professional. Learn the rules for pregnancy and parental leaves, medical exams and certifications, intermittent leaves, required notices, and more.
New Legislation Clarifies Program
In other developments, a follow-up measure, SB 727, clarifies some aspects of last year’s paid family leave law. Here are some of the key provisions:
- Program renamed. The program will now be called ‘Paid Family Leave.’ It was previously referred to as ‘Family Temporary Disability Insurance’ or ‘FTDI.’
- Bonding benefits clarified. Last year’s legislation stated the program covers absences for the birth of a child or in connection with the adoption or foster care placement of a child. The new measure clarifies this ‘bonding’ leave must be taken within one year of the child’s birth, placement in foster care, or adoption. Also, periods of disability both for pregnancy and family care leave for bonding with a newborn child will count as one ‘disability benefit period.’ This means an employee can collect a maximum of six weeks of benefits, rather than six weeks for the pregnancy disability and another six weeks for bonding leave.
- No benefits if other caregiver available. An employee won’t be eligible for paid family leave program benefits in connection with caring for a seriously ill family member for any day that another family member—including a child, parent, spouse, or domestic partner—is ready, willing, and able to provide the required care.
- Notice contents clarified. As we mentioned, employers will have to provide a notice to employees regarding the paid family leave program benefits. The new legislation clarifies this notice shall instruct employees to notify you of the reason for taking leave in a manner consistent with company policy.
- 12-month period defined. Employees are eligible for no more than six weeks of paid family leave benefits in a 12-month period. This period begins on the first day an individual establishes a valid claim for such benefits.
Regulations on the Way
The EDD is putting the finishing touches on regulations for administering the paid family leave program. Public hearings on the proposed regulations wrapped up in mid-October, and the agency expects to finalize the rules shortly. We’ll keep you posted.