| | | | | |
Q & A on California’s Paid Family Leave Law
(Adapted from the State of California Employment Development Department (EDD) website.)
As enacted, the law provides that any employee who is required to take time off of work due to the illness of a seriously ill child, spouse, parent or domestic partner, or to bond with a new child, is entitled to receive compensation through the State Disability Insurance (SDI) system.
Below, adapted from the State of California Employment Development Department (EDD) website, are answers to some frequently-asked questions about the new law.What is Paid Family Leave? Paid Family Leave is unemployment compensation disability insurance paid to workers who suffer a wage loss when they take time off work to care for a seriously ill family member or bond with a new child.
How long may a person receive Paid Family Leave insurance benefits? Workers may receive up to six (6) weeks of benefits that may be paid over a 12-month period.
What is the relationship of Paid Family Leave Insurance to State Disability Insurance? Paid Family Leave Insurance is a component of the State Disability Insurance (SDI) program. The SDI benefit portion compensates workers who suffer a wage loss when they can’t work because of their own illness or injury. The Paid Family Leave benefit compensates workers who suffer a wage loss due to the need to provide care for a seriously ill family member or to bond with a new child.
Are payroll deductions mandatory? Yes, beginning January 1, 2004, employers are required to deduct the Paid Family Leave contributions from the wages of employees who are covered by the SDI program.
Who pays? The Paid Family Leave insurance program is fully funded by employees’ contributions, similar to the SDI program.When does the Paid Family Leave insurance program begin? Benefits will be payable for Paid Family Leave insurance claims commencing on or after July 1, 2004.
Will the moratorium on new regulations delay the implementation of Paid Family Leave benefits? No. Paid Family Leave benefits will be paid to eligible claimants starting July 1, 2004, as specified in the statute. The regulations clarify the statutory provisions, but cannot change the rights or responsibilities specified in the statute. The processing of all pending regulations are suspended pending a review that will reassess their impact on business. This applies to all pending regulations, including the pending Paid Family Leave regulations. After the required review, the processing of the regulations is expected to continue with another public comment period.
How does the passage of the Paid Family Leave clean-up bill (SB 727) affect the regulations for the Paid Family Leave program? The EDD plans to incorporate the regulatory changes necessary due to the enactment of SB 727 in the current regulatory proceeding. SB 727, for example, eliminated the waiting period for Paid Family Leave benefits for women who serve a waiting period before collecting DI benefits for pregnancy and then elect to bond with their new child using Paid Family Leave benefits. Comments on these changes, as well as on EDD’s responses to comments received to the initial proposed regulations, will be sought during the next public comment period on the regulations.
Are self-employed individuals covered by Paid Family Leave? Yes, but only if they participate in the SDI Elective Coverage Program.
I work for a government entity. Am I covered? Some government workers, including school employees, may be eligible for Paid Family Leave insurance benefits if they contribute into the SDI program. Also, if you have wages from a private employer during the base period, you might qualify even though your primary employer is a government entity.
I work for a small business. Am I covered? Employees are covered for Paid Family Leave insurance benefits regardless of the size of their employer, provided they contribute to the SDI program.
May I collect Paid Family Leave insurance benefits if I work part time? Yes, provided you are otherwise eligible. Paid Family Leave insurance is a wage loss protection program, which means that individuals may be entitled to a portion of the Paid Family Leave insurance benefit if they are suffering a loss of wages and meet the other Paid Family Leave eligibility requirements.
In what situations may I file for Paid Family Leave insurance benefits? An employee may file a claim for Paid Family Leave insurance benefits for the following reasons:
• To care for a seriously ill child, spouse, parent, or domestic partner;
• To bond with the employee’s new child or the new child of the employee’s spouse or domestic partner; or
• To bond with a child in connection with the adoption or foster care placement of the child with the employee or the employee’s spouse or domestic partner.Do I have to work a minimum number of hours or days before becoming eligible for Paid Family Leave insurance benefits? No. Eligibility for Paid Family Leave insurance benefits will be based on the earnings shown in your base period and not a specific number of days or months worked. Wages earned approximately 5 to 17 months before the beginning of your Paid Family Leave insurance claim are included in the base period.
How many days must I be off work to receive Paid Family Leave insurance benefits? At least eight (8) calendar days.
Do I need to take all of my Paid Family Leave insurance benefits at one time? No. The law does not establish a minimum number of hours or days or weeks that an employee must take Paid Family Leave insurance benefits. It only established the maximum leave time of six (6) paid weeks within a 12-month period.Am I required by law to use my vacation leave when collecting Paid Family Leave insurance benefits? The law gives an employer the discretion (option) to require an employee to take up to two weeks of earned but unused vacation leave. This option does not relieve employers of any collective-bargaining duties they may have with respect to vacation leave.
If I have not accumulated two weeks of vacation leave do I have to use my earned but unused sick leave instead? No. The Paid Family Leave law does not authorize employers to require the use of sick leave in lieu of vacation.
Are the payroll deductions mandatory? Yes, beginning January 1, 2004, employers are required to deduct the Paid Family Leave insurance contributions from the wages of employees who are covered by the SDI program.
How much will it cost? For calendar years 2004 and 2005, the Paid Family Leave insurance contribution rate will be .08 percent (.0008) of the taxable wage limit.
The taxable wage limit in 2004 will be $68,829. This means that wages above this amount are not taxed for SDI. Therefore the maximum contribution for Paid Family Leave insurance would be $55.06 in 2004, in addition to the existing SDI contribution.
The taxable wage limit in 2005 will be $79,418. This means that wages above this amount are not taxed for SDI. Therefore, the maximum contribution for Paid Family Leave insurance would be $63.53 in 2005, in addition to the existing SDI contribution.
The cost of Paid Family Leave insurance will be incorporated into the base SDI contribution rate from 2006 and beyond.What is the relationship between Paid Family Leave insurance and employee leave laws? The FMLA and CFRA are federal and state leave laws, respectively, that allow workers to take up to 12 workweeks of unpaid leave from their jobs in a 12-month period to care for themselves or family members who are ill, or children who are unable to take care of themselves. Paid Family Leave insurance does not change either law in any way and is completely separate from them. It merely provides up to six (6) weeks of paid benefits to workers who suffer a wage loss when they take time off work to care for others.
For more information about FMLA, visit the Department of Labor’s Web site at www.dol.gov. For more information about CFRA contact the California Department of Fair Employment and Housing at 1-800-884-1684 or visit them on the Web at www.dfeh.ca.gov.Are employees required to take leave under the federal FMLA and the CFRA at the same time they are receiving Paid Family Leave insurance benefits? Yes, if your company is subject to the provisions of FMLA and CFRA. For additional information about the CFRA, visit the State Department of Fair Employment and Housing’s Web site at www.dfeh.ca.gov.
Is a Paid Family Leave claimant’s job protected? The Paid Family Leave program does not protect anyone’s job. It simply provides partial wage replacement when a person cannot work due to the need to care for a child, parent, spouse, or registered domestic partner, or to bond with a new child. Some persons may have their job projected under other laws, such as the FMLA or the CFRA.
How will my weekly benefit amount for Paid Family Leave insurance be determined? Your weekly benefit amount will be calculated based on the calendar quarter with the highest earnings during the base period. You must have at least $300 in wages in your base period.
How much will I receive? For Paid Family Leave insurance claims beginning July 1, 2004, through December 31, 2004, weekly benefits will range from $50 to $728. To qualify for the minimum weekly amount ($50), an individual must have at least $300 in wages in the base period. To qualify for the maximum weekly benefit amount ($728), an individual must earn at least $17,183.65 in a calendar quarter during the base period.
For Paid Family Leave insurance claims beginning January 1, 2005 through December 31, 2005, weekly benefits will range from $50 to $840. The same minimum qualification applies. To qualify for the maximum weekly benefit amount ($840) an individual must earn at least $19,830.92 in a calendar quarter during the base period.Will my Paid Family Leave insurance benefits equal my full pay? Your weekly benefit amount will be approximately 55% of your earnings up to the maximum weekly benefit amount.
How long can I receive Paid Family Leave insurance benefits? You may collect up to six (6) weeks of Paid Family Leave insurance benefits during a 12-month period.
May a person collect other benefits while also collecting Paid Family Leave insurance? A worker may not receive Paid Family Leave insurance benefits if he or she is also eligible for or already receiving State Disability Insurance, Unemployment Compensation Insurance, or Workers’ Compensation.
How is the Paid Family Leave insurance benefit affected when an employee receives sick leave benefits and Paid Family Leave at the same time? Consistent with the SDI program, sick leave wages are treated as wages. Paid Family Leave insurance benefits will be reduced by the amount of sick leave wages received, and may render the individual ineligible for benefits depending on the amount of sick leave wages received and the individual’s weekly benefit amount.
When will Paid Family Leave insurance benefit payments begin? Claims are payable for benefit periods that begin on or after July 1, 2004. In other words, benefits will not be paid for leave taken prior to July 1, 2004.
May SDI claim forms be used for Paid Family Leave? No. The EDD will issue a separate form for Paid Family Leave insurance claims.When will EDD make Paid Family Leave insurance claim forms available? The claim form should be available in April 2004, but claims are payable for benefit periods commencing July 1, 2004.
Are employers required to provide Paid Family Leave insurance claim forms to their employees? No.
How can employees obtain a claim form? Claim forms can be obtained by calling 1-877-BE-THERE (1-877-238-4373) or visiting EDD offices after April 2004.