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California paid family leave expansion becomes law

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in Employment Law,Human Resources

Gov. Jerry Brown has signed legislation increasing the wage replacement rate under California’s paid family leave program.

Currently, qualifying employees are entitled to receive replacement wages equal to 55% of their regular pay. Under the new law, they will be able to receive 60% or 70%, depending on income level.

The legislation, AB 908, revises the paid leave benefit formula and eliminates a seven-day waiting period for receiving benefits starting in 2018.

The bill also expands the leave entitlement from the current four weeks to six weeks.

The governor’s signature came just a week after signing a bill hiking the state’s minimum wage to $15.00 per hour by 2022.

California’s paid family leave program is funded by employee contributions, which will have to increase to pay for the new, higher benefits.

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