Vol. 02, No. 10
- The new law does not take effect until 2004. Payroll deductions begin in January 2004 and paid leave eligibility begins in July 2004.
- The new law applies to all employees except state and local government employees or other employees with an approved voluntary plan.
- The program is to be funded by payroll deductions of .08% of wages per year, although in later years this could be adjusted upward to as much as 1.5% or downward to as little as .01%.
- An employee may take up to 6 weeks' paid leave within a one-year period. "Paid leave" means 55% of pay, up to a maximum of about $728 per week.
- "Paid leave" is available to an employee who is unable to work due to the employee's own sickness or injury, the sickness or injury of a family member, or the birth, adoption or foster care placement of a new child. "Family member" includes children, parents, spouses, or domestic partner (as defined under California Family Code § 297).
- An employer can require an employee to use up to 2 weeks' earned but unused vacation leave prior to that employee's receipt of paid leave benefits.
- The new paid leave law does not replace the existing California Family Rights Act (California Government Code § 12945.1, et seq.).
- In situations where the current California Family Rights Act applies (for employers with over 50 employees within 75 miles of the employee's worksite, and for employees with at least one year of service) the 6 weeks of paid leave under the new law will run concurrent with the 12 weeks of unpaid leave under the existing law.
- Although the new law itself does not provide a job guarantee, job guarantees and prohibitions against termination under existing law are unchanged. For example, in situations where the current California Family Rights Act applies, the job guarantee under that act still applies. Additionally, employers with fewer than 50 employees should not think they can simply replace any employee who takes paid leave under the new law. The old laws prohibiting termination in violation of public policy still apply. Under these laws, it is illegal to terminate an employee in violation of a policy that is fundamental, beneficial for the public, and embodied in a statute or constitutional provision.
