BILL ANALYSIS Ó SB 299 Page 1 Date of Hearing: June 22, 2011 ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT Sandre Swanson, Chair SB 299 (Evans) - As Introduced: February 14, 2011 SENATE VOTE : 27-11 SUBJECT : Employment: pregnancy or childbirth leave. SUMMARY : This bill requires employers to maintain and pay for a pregnant employee's medical coverage during pregnancy leave. Specifically, this bill : 1)Makes it unlawful for an employer to refuse to maintain and pay for coverage for an eligible female employee who takes leave under the conditions that coverage would have been provided if the employee had continued in employment continuously for the duration of the leave. 2) Allows an employer to recover premium costs from the employee for maintaining coverage for the employee under the group health plan if both of the following conditions occur: a) The employee fails to return from leave after the period of time to which the employee is entitled. b) The employee's failure to return from leave is for a reason other than one of the following: i) The employee takes leave under the California Family Rights Act (Sections 12945.2 and 19702.3 of the Government Code). ii) The continuation, recurrence or onset of a health condition that entitles the employee to pregnancy leave or other circumstances beyond the employee's control. EXISTING FEDERAL LAW 1)Establishes the Pregnancy Discrimination Act (PDA), as an amendment to the Civil Rights Act of 1964, to prohibit sex discrimination based on pregnancy, childbirth and related medical conditions. SB 299 Page 2 2)Establishes the federal Family and Medical Leave Act (FMLA) of 1993 to entitle employees to up to 12 weeks of unpaid leave for the following: a) The birth of a child or the placement of a child for adoption or foster care, b) In order to care for a seriously ill spouse, child or parent of the employee c) The employee has a health condition that prohibits him or her from performing his or her work functions. 3)Defines FMLA "eligible employees" as those who have worked with the employer from which leave is being requested for at least 12 months and provided at least 1250 hours of service during the 12 months preceding the request. EXISTING STATE LAW 1)Entitles an employee disabled by pregnancy, childbirth or related medical conditions to take pregnancy disability leave (PDL) for a maximum of four months. 2)Prohibits employers with five or more employees from refusing to allow an employee disabled by pregnancy the right to take job-protected, unpaid leave. 3)Establishes the California Family Rights Act (CFRA) which requires employers to grant employees up to 12 weeks of unpaid protected leave, in any 12 month period, to care for a seriously ill spouse, child or parent, or for their own serious medical condition a) Includes, in the definition of "family care and medical leave," leave for the reason of the birth of a child of the employee FISCAL EFFECT : According to the Senate Appropriations Committee, this bill has minor, absorbable costs. COMMENTS : According to the author, the lack of maternity coverage assurance under PDL discourages and prevents women from taking pregnancy leave despite their health needs and the needs of their baby. The author states that women who are forced to SB 299 Page 3 pay out-of-pocket costs for health coverage delay or cut short their leave despite well-documented benefits to maternal and child health. In addition, the author notes that approximately four-fifths of pregnant women report that they were unable to take leave because they could not afford it. According to the author, meaningful access to leave - including the maintenance of health insurance coverage - is essential to the health and economic security of working women and their families. PDA requires employers who provide health insurance to cover expenses for pregnancy-related conditions. In addition, PDA requires employers who provide benefits to workers on leave to provide the same benefits for those who are on leave for pregnancy-related conditions. A 2008 report on women and health insurance by the American College of Obstetricians and Gynecologists (ACOG) found that women who lack health insurance also lack adequate access to care and have poorer health outcomes than insured women. ACOG notes that uninsured pregnant women are less likely to seek prenatal care and are 31 percent more likely than their insured counterparts to experience adverse health outcomes after giving birth - including higher rates of infant and maternal mortality. ARGUMENTS IN SUPPORT : In a letter expressing co-sponsorship of this bill, the California Commission on the Status of Women (CCSW) writes that the current gap in the PDL law puts the health and well-being of women and their infants at risk. CCSW notes that access to health care is absolutely crucial for pregnant women and the lack of protection in the current PDL law discourages and prevents women from taking pregnancy leave despite their health needs and the needs of their babies. CCSW states that it is extremely important for pregnant women and new mothers to have access to both leave from work and continued health care coverage. The California Pan-Ethnic Health Network (CPHEN) writes that this bill will ensure that employer-provided health care coverage is continued for women on pregnancy leave under PDL. CPHEN notes that PDL does not require employers to continue health insurance while on pregnancy leave and federal laws that do require such coverage exclude over half of the workforce. According to CPHEN, this current gap in the law puts the health and wellbeing of women and their infants at risk. The organization states that women should not have to choose between SB 299 Page 4 taking medically necessary pregnancy leave and continuing health care coverage for themselves and their families. In their letter of support the California Nurses Association (CNA) asserts that pregnant women have a stronger connection to the workforce than ever before and health care benefits for women who are pregnant or have just given birth should not be terminated at a time when they are needed most. REGISTERED SUPPORT / OPPOSITION : Support 9to5 National Association of Working Women American Association of University Women California American Civil Liberties Union California Academy of Family Physicians California Alliance for Retired Americans California Child Care Resource and Referral California Commission on the Status of Women (co-sponsor) California Employment Lawyers Association California Family Health Council California Labor Federation, AFL-CIO California Medical Association California National Organization for Women California Nurse-Midwives Association California Nurses Association California Pan-Ethnic Health Network California Partnership to End Domestic Violence California Primary Care Association California State Employees Association California Women's Law Center Communication Workers of America, AFL-CIO District 9 Dr. Karen Dalton Equal Rights Advocates (co-sponsor) Labor Project for Working Families (co-sponsor) Los Angeles Alliance for New Economy Nevada County Citizens for Choice Restaurant Opportunities Center of Los Angeles SEIU Local 1000 Women's Committee St. John's Well Child and Family Center The Legal Aid Society Employment Law Center United Food and Commercial Workers Union, Local 5 United Steelworkers Local 675 Warehouse, Processing, and Distribution Workers Union, Local 26 Western Center on Law & Poverty SB 299 Page 5 Women's Employment Clinic, Golden Gate University School of Law Neutral Department of Finance Opposition None on file. Analysis Prepared by : Shannon McKinley / L. & E. / (916) 319-2091