BILL ANALYSIS Ó Senate Committee on Labor and Industrial Relations Ted W. Lieu, Chair Date of Hearing: May 11, 2011 20011-2012 Regular Session Consultant: Gideon L. Baum Fiscal: No Urgency: No Bill No: SB 272 Author: DeSaulnier Version: As Amended April 26, 2011 SUBJECT Leave of absence: organ donation. KEY ISSUE Should the Legislative clarify the existing organ and bone marrow donation law to assist businesses in compliance? PURPOSE To clarify the Michelle Maykin Memorial Donation Protection Act to assist employer compliance. ANALYSIS Existing federal and state laws, known as the federal Family Medical Leave Act (FMLA) and the California Family Rights Act (CFRA), require all employers with 50 or more employees within a 75 mile radius to grant 12 weeks of unpaid family leave in a 12-month period to any employee who is eligible. This leave can be taken by an employee for the purposes of child birth, care of a newly adopted child or newly placed foster child, and serious health conditions for the employee, the employee's spouse or registered domestic partner, or for the employee's parent. With certain exceptions, the employee taking the leave must be reinstated. Existing law requires that employees of the state who have exhausted all available sick leave be allowed to take a leave of absence with pay, not exceeding 30 days for the purpose of organ donation and not exceeding 5 days for bone marrow donation. Existing law also requires any business entity that employs 15 or more employees to provide up to 30 days of paid leave for an organ donation and up to 5 days of paid leave for a bone marrow donation. Existing law also prohibits a private employer from interfering with an employee taking organ or bone marrow donation and from retaliating against an employee for taking such leave or opposing an unlawful employment practice related to organ or bone marrow donation leave. This bill makes the following clarifying changes: i. That leave for an organ donation must not exceed 30 business days in a year, and that the one-year period is measured from the date the employee's leave begins and consists of 12 consecutive months ; ii. Any period of time during which an employee is required to be absent from his or her position by reason due to organ or bone marrow leave is not break in his or her continuous service for the purpose of his or her right to paid time off , and that health coverage continues in the same manner the coverage would have been maintained if the employee had been actively at work; iii. Includes paid time off as leave that an employer can require be used for bone marrow and organ tissue donation; iv. Recites the California Family Rights Act; and v. Leave provided for pursuant to this section may be taken in one or more periods, but in no event shall exceed the amount of leave prescribed in the law . This bill would also declare the above amendments to existing law are declaratory of existing law. COMMENTS Hearing Date: May 11, 2011 SB 272 Consultant: Gideon L. Baum Page 2 Senate Committee on Labor and Industrial Relations 1. Need for this bill? Last year, the Legislature passed, and Governor Schwarzenegger signed, SB 1304 (DeSaulnier), Statutes of 2010, Chapter 646, also known as the Michelle Maykin Memorial Donation Protection Act. This Act provided protected leave for employees who donated bone marrow or organ tissue, and was named after the daughter of one of Senator DeSaulnier's constituents who died of leukemia in 2009. Since the passage of SB 1304, the California Chamber of Commerce and other stakeholders have noted areas where, while the law's intent may be clear, additional clarification would provide certainty for businesses seeking to comply with the law. SB 272 is the product of those discussions and seeks to clarify the Legislature's original intent with SB 1304 and existing law. 2. Proponent Arguments : The sponsor of the measure, the California Chamber of Commerce, believes that this bill will clarify existing law to aid employers in the proper implementation of the Michelle Maykin Memorial Donation Protection Act. The Chamber notes that there was some ambiguity in the terms utilized in the Act, which required certain amendments. Specifically, the Chamber notes the confirmation of the time period for leave as business days, the clarification that health insurance must be continued at the same level prior to the leave, and the clarification that a paid time off program can be utilized in the same manner as a sick leave or vacation leave policy. With these amendments, the Chamber believes that SB 272 will provide the clarification and certainty employers need to comply with the law, which will benefit both employer and employee alike. 3. Prior Legislation : Hearing Date: May 11, 2011 SB 272 Consultant: Gideon L. Baum Page 3 Senate Committee on Labor and Industrial Relations SB 1304 (DeSaulnier), Statutes of 2010, Chapter 646, was discussed above. SUPPORT California Chamber of Commerce (Sponsor) California Nurses Association National Nurses Organizing Committee OPPOSITION None on file. Hearing Date: May 11, 2011 SB 272 Consultant: Gideon L. Baum Page 4 Senate Committee on Labor and Industrial Relations