California Law Update: Employment 2016

California Law Update: Employment 2016

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New laws will be coming to California as progress makes way in this wonderful state.

On April 21, 2016, San Francisco Mayor Ed Lee signed the Paid Parental Leave Ordinance. The law will go into effect on January 1, 2017; in San Francisco, employers with 50 or more employees will be required to provide wage replacement to employees who will take leave with a new child under the California Paid Family Leave (PFL) program.

Under current PFL law, employees can receive up to 55 percent of their original pay in partial wage replacement for up to six weeks so they can take time away from work and focus on raising their newborn baby (or take care of a seriously ill family member).  San Francisco’s Paid Parental Leave Ordinance will require employers to pay the employee’s full, 100 percent wage.

  • Effective July 1, 2017, the ordinance will apply to employers with 35 or more employees.
  • Effective January 1, 2018, the ordinance will become available to more people as the required number of employees drops to 20 employees or more.

Paid Family Leave Benefits

Following suit with San Francisco’s mayor, California Governor Jerry Brown signed a law (A.B. 908) expanding the state’s paid PFL program by increasing the amount of pay for those employees that must leave work and care for their infant or seriously ill family member. Like San Francisco’s law, the state’s law allows for employees to receive more than 55 percent of their wages. Unlike the new law, however, California’s replacement wages do not go to 100 percent, but it’s definitely some sort of step up. There will be:

  • 70 percent wage replacement for those who make up to 33 percent of the California weekly average wage.
  • 60 percent wage replacement for those who make more than 33 percent of the California weekly average wage.

Many families will benefit from having part of their income replaced with these new laws. Hoffman Brown Company can help you with any further information regarding this new law.  Contact your Hoffman Brown Team in Sherman Oaks, California for more information and all of your insurance needs.