California Paid Family Leave (PFL) provides short-term wage replacement benefits to eligible workers taking family leave for up to eight weeks in a 12-month period. While employers do not pay for PFL benefits, there are certain actions the state requires them to take. These actions include:
- Employers must tell employees about PFL and the benefits they may be eligible for.
- They must withhold and send employee contributions.
- They must respond to California’s Employment Development Department when employees file claims.
The following article will help employers understand the benefits California PFL offers employees and the requirements it levies on employers.
What leave options does California Paid Family Leave provide employees?
California PFL provides replacement wages to workers who need time off work to care for a seriously ill family member, bond with a new child, or deal with a qualifying event related to a family’s military deployment to a foreign country. Eligible individuals may receive up to eight weeks of wage replacement in a 12-month period.
Under California PFL, a serious health condition includes:
- llness
- Injury
- Impairment, physical, or mental condition involving any period of incapacity
- Inpatient care in a medical facility and any subsequent treatment
- Continuing treatment by physicians/practitioners
Individuals may break up their leave and take it in chunks. Parents taking time off work to bond with a child, however, may only receive PFL benefits during the first year following their child’s birth, adoption, or foster care placement.
Who is eligible for California Paid Family Leave?
To be eligible for California PFL, individuals must satisfy several requirements.
- Recipients must be unable to perform their regular or customary work.
- Recipients must have earned at least $300 from their employer, and they must have had State Disability Insurance deductions withheld from their pay during their base period.
- Recipients must have lost wages because they had to: care for a seriously ill family member; bond with a new child; or participate in a qualifying event resulting from a family’s military deployment to a foreign country.
- Recipients must be employed or actively searching for work when family leave begins. Part-time workers can be eligible for California PFL. It is also possible for workers who have quit their job to care for a seriously ill family member to receive PFL.
What wage replacement does California Paid Family Leave offer?
Eligible individuals on leave can receive between 70 and 90% of the wages earned 5 to 18 months before the start date of their claim. Recipients’ weekly benefit amount (WBA) is calculated using their highest quarter of earnings in their base period. (“A base period covers 12 months and is divided into four consecutive quarters,” according to the PFL website. “The base period includes wages subject to [State Disability Insurance] tax which were paid about 5 to 18 months before your family leave claim began.”)
Recipients’ wage replacement varies based on income. If their highest 3-month quarterly earnings fall between $722.50 and $15,506.40, their WBA is approximately 90% of their weekly wages. Those earning a highest 3-month earning between $15,506.41 and $19,936.80 receive $1,047. If their highest 3-month quarterly earnings exceed $19,936.81, their WBA is approximately 70% of their weekly wages, up to $1,681.
Does California Paid Family Leave require employer contributions?
No. California PFL is funded by mandatory payroll deductions. These deductions come out of covered workers’ pay. Employers are required to collect these contributions, send them to California’s Employment Development Department (EDD), and respond to employee claims for PFL.
Does California Paid Family Leave interact with other types of leave?
As of Jan. 1, 2025, employers will no longer be able to require employees to use accrued vacation before accessing California PFL benefits. A bill signed by California Gov. Gavin Newsom eliminated employers’ ability to require employees to take up to two weeks of accrued vacation before using PFL benefits.
It’s worth noting that employees may not receive disability insurance or unemployment insurance benefits while receiving PFL benefits. Employees may, however, receive workers’ compensation while receiving PFL benefits. “If your workers’ compensation weekly benefit amount is less than your weekly PFL benefit amount, you may be eligible to receive the difference,” California’s EDD says.
Does California Paid Family Leave offer job protection?
California PFL does not protect workers’ jobs. It provides only paid benefits when workers need time off for family leave. It’s important to note, however, that other laws provide job protections for workers taking leave for family reasons. These laws include the federal Family and Medical Leave Act and the California Family Rights Act.
What information regarding California PFL must employers provide?
Employers must post and provide information regarding California PFL. Employers must post this poster informing employees of their rights to claim PFL and other benefits. They must give this brochure to new hires and employees who ask to take PFL for a covered reason.
When does an employee need to give notice of their California Paid Family Leave?
Employees must submit their PFL claims on or after the first day of their leave, but no later than 41 days after their leave begins. Once California’s claim filing platform is completed and launched, however, employees will be able to file a claim up to 30 days in advance of the first compensable day for benefits. This form asks employers to verify the information the employee provided on their claim. Employers must complete and return the paper form to EDD within two working days.
How can your HR team ensure they are compliant with California Paid Family Leave?
California’s Department of Employee Development provides helpful information and free resources about California PFL on its website. To enhance your compliance efforts, schedule a demo with AbsenceSoft. Our system is updated by our in-house experts to keep you compliant from day one.