Parental leave, particularly in California, is complex and confusing for both employers and employees. As an example, we are using parental leave in California for the birth-parent, but can help you navigate through state-by-state compliance for all leave of absence needs.
There are two components to birth-parent parental leave in California: job protection and wage-replacement.
Job-protected leave for new parents is a legally mandated or employer-provided benefit that allows eligible employees to take a specified amount of time off from work following the birth or adoption of a child. During this leave, the employee's position and job security are protected, meaning they cannot be terminated, demoted, or subjected to adverse employment actions solely because they are taking this leave.
In California, wage replacement for maternity leave is primarily provided through the state's Paid Family Leave (PFL) program, which is part of the State Disability Insurance (SDI) system. SDI and PFL offer partial wage replacement to eligible employees who need to take time off from work to bond with a new child, whether through birth, adoption, or foster care.
It’s also important to understand that PDL, FMLA, and CFRA provide job protection only and disability Insurance (DI) and Paid Family Leave (PFL) provide wage replacement benefits only.
We will discuss the two components more in-depth below:
Job Protected Leave:
Pregnancy Disability Leave (PDL), the California Family Rights Act (CFRA), and the Family and Medical Leave Act (FMLA) are three distinct legal provisions that pertain to leave from work in the context of pregnancy and family-related issues. Let us explain each of them in more detail:
Pregnancy Disability Leave (PDL):
Purpose: PDL is designed to provide job-protected leave to pregnant employees for disabilities related to pregnancy and childbirth.
Duration: PDL typically provides up to four months (or 88 workdays) of unpaid leave for an employee's pregnancy-related disabilities.
Eligibility: To be eligible for PDL, an employee must work for an employer with at least five employees and must be disabled due to pregnancy, childbirth, or related medical conditions.
Benefits: During PDL, employees may be entitled to continue receiving group health insurance benefits, but it doesn't provide for paid leave.
California Family Rights Act (CFRA):
Purpose: The CFRA is a California state law that provides eligible employees with up to 12 weeks of job-protected leave for certain family and medical reasons, which can include pregnancy and bonding with a new child.
Duration: CFRA provides up to 12 weeks of unpaid leave within a 12-month period. CFRA begins when disability leave ends.
Eligibility: To be eligible for CFRA, an employee must work for an employer with at least 5 employees and have been employed for at least 12 months and worked at least 1,250 hours during the 12-month period before the leave is requested. Employees who have been with their employer for less than 12 months may become eligible for CFRA if their 12-month anniversary occurs during their PDL.
Benefits: Unlike PDL, CFRA provides broader coverage, as it can be used for various family and medical reasons, including bonding with a newborn or adopted child, caring for a seriously ill family member, and the employee's own serious health condition. It's unpaid leave, but employees can use accrued paid time off, such as vacation or sick leave.
Family and Medical Leave Act (FMLA):
Purpose: The FMLA is a federal law that provides eligible employees with job-protected leave for certain family and medical reasons.
Duration: FMLA provides up to 12 weeks of unpaid leave within a 12-month period. Some military family leave provisions extend the leave duration.
Eligibility: To be eligible for FMLA, an employee must work for an employer with at least 50 employees within a 75-mile radius, have worked for the employer for at least 12 months, and have worked at least 1,250 hours during the 12-month period before the leave is requested.
Benefits: FMLA can be used for various family and medical reasons, including pregnancy, bonding with a newborn, caring for a seriously ill family member, or the employee's own serious health condition. While it is unpaid, employees can use accrued paid time off to receive compensation during their leave.
It's important to note that CFRA may be used for reasons related to pregnancy or childbirth beyond the disability period covered by PDL, such as bonding with a new child. These two laws often work together when an employee needs time off due to pregnancy or related conditions, however, unlike FMLA, PDL and CFRA do not overlap. It's also essential to understand which laws may overlap in some situations, and the specific provisions can vary depending on your location, employer size, and individual circumstances.
When you are putting your employee on LOA, it’s important to change their status in your company HRIS, understand and determine how employee benefits, such as health insurance, retirement contributions, stock options, etc. will be affected during this time. We also recommend that you maintain thorough documentation of the LOA process, including copies of all written communications and forms, as well as any agreements or arrangements made with the employee.
Wage Replacement:
In California, PFL (Paid Family Leave) and SDI (State Disability Insurance) are two related programs that provide financial support, generally 50 - 60% of weekly wages earned, to individuals who have just had a baby or need to take time off from work for family or medical reasons.
Below is a detailed explanation outlining how these wage replacement programs work for the birth parent.
California Paid Family Leave (PFL): PFL is a component of the SDI program, and it provides wage replacement benefits to eligible individuals who need time off from work to bond with a new child. This can include parents who have just had a baby through birth, adoption, or foster care.
Eligibility: To be eligible for PFL benefits in California, you generally need to have earned a minimum amount of wages and paid into the SDI program. You should have earned at least $300 in wages in the base period and meet other eligibility requirements.
Wage Replacement: PFL offers partial wage replacement, typically equal to a percentage of your regular wages, up to a certain maximum weekly benefit amount. The percentage is usually around 60-70% of your earnings, depending on your income. The maximum weekly benefit amount is subject to change and may be adjusted annually.
Duration: PFL benefits can be received for up to eight weeks within a 12-month period. These weeks can be taken within the first year after the birth of the child.
State Disability Insurance (SDI): SDI is a separate program in California that provides partial wage replacement to individuals who are unable to work due to a non-work-related injury, illness, or medical condition, including pregnancy and childbirth.
Eligibility: Eligibility for SDI is similar to PFL, with requirements related to wages and contributions to the program.
Wage Replacement: SDI provides partial wage replacement for eligible individuals who are temporarily disabled, including those who are temporarily disabled due to pregnancy or childbirth.
Duration: The duration of SDI benefits for pregnancy and childbirth is typically determined by the individual's medical condition and the advice of a healthcare provider.
It's important that the employee apply for these benefits through the California Employment Development Department (EDD) as soon as they become eligible and anticipate taking time off. The specific benefit amounts and rules may change over time, so it's advisable to check the EDD's website or contact them directly for the most up-to-date information on PFL and SDI benefits in California.
It is not lost on us how complicated parental leave is in California, and every state is different so managing LOA can be exponentially complex if you have employees in a variety of states. Stay tuned for upcoming blog posts that will outline parental leave in CA for non-birth parents, as well as parental leave in other frequently asked about states. And if you need some help with your policy or have questions about a current employee who is needing to take parental leave- we are just a phone call or email away and happy to help.
*This information is current as of October 2023- but these details and qualifications change frequently. It is critical to have an up-to-date parental leave plan that is compliant- let us know if you need some help!