Governor Signs Paid Family Leave Expansion
Assembly Bill 908, recently signed by Governor Brown, will increase the state’s paid family leave (PFL) compensation rates for workers. The bill would increase the wage replacement rate for PFL benefits from 55% to:
a) 70% for those who make up to 33% of the California average weekly wage.
b) 60% for those who make more than 33% of the California average weekly wage.
The same increase would apply to people enrolled in California’s State Disability Insurance (SDI) program, which entitles people to paid time off for non-work related injuries and disabilities, including pregnancies. Workers can take up to six weeks through the PFL program and up to 52 weeks off through the SDI program.
It’s important to note that employers are not affected, as the cost is born by the employees and not the employers. The PFL program is part of the SDI program that is funded by proceeds from employee payroll deductions which are deposited in the SDI Fund.