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.









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          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 








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          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 








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          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








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          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