BILL ANALYSIS �
SB 770
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Date of Hearing: August 7, 2013
ASSEMBLY COMMITTEE ON INSURANCE
Henry T. Perea, Chair
SB 770 (Jackson and DeSaulnier) - As Amended: August 5, 2013
SENATE VOTE : 29-10
SUBJECT : Paid Family Leave
SUMMARY : Extends eligibility for the paid family leave program
(PFL) to employees who need to care for a seriously ill
grandparent, grandchild, sibling, or parent-in-law.
Specifically, this bill :
1)Extends eligibility for the PFL program to employees who take
time off from work to care for a seriously ill grandparent,
grandchild, sibling, or parent-in-law.
2)Defines "grandchild" as the child of the employee's child.
3)Defines "grandparent" as a parent of the employee's parent.
4)Defines "parent-in-law" as the parent of a spouse or a
domestic partner.
5)Defines "sibling" as person related to another person by
blood, adoption, or affinity through a common legal or
biological parent.
6)Defers implementation until July 1, 2014.
EXISTING LAW :
1)Establishes the PFL program that provides up to six weeks of
wage replacement benefits to workers who take time off work to
care for a seriously ill child, spouse, parent, domestic
partner, or to bond with a minor child within one year of
birth or placement of the child in connection with foster care
or adoption.
2)Establishes the State Disability Insurance (SDI) Program for
individuals who are unable to work due to sickness or injury,
the sickness or injury of a family member, or the birth,
adoption, or foster care placement of a new child.
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3)Requires a claimant for SDI or PFL benefits to establish his
or her medical eligibility for each period of disability by
obtaining a certificate from a treating physician or
practitioner that establishes the sickness, injury, or
pregnancy of the employee, or the condition of the family
member that warrants the care of the employee. As part of the
certificate of eligibility to care for a family member, the
physician or practitioner must provide an estimate of the time
needed by the employee to care for the child, parent, spouse,
or domestic partner.
4)Requires each employee to contribute to the Disability Fund to
pay the costs of DI benefits. The rate of these employee
contributions ranges from 0.1% to 1.5% of wages, and are
calculated and announced annually by the Director of the EDD
based on the financial condition of the disability fund.
FISCAL EFFECT : According to the Senate Appropriations
Committee, EDD estimates that the additional benefit costs would
be $34 to $36 million annually. This estimate assumes a 50
percent increase in payable PFL care claims and is the estimated
maximum potential liability to the Fund.
COMMENTS :
1)Purpose . According to the author, the definition of family
within the Paid Family Leave insurance program is overly
narrow and does not reflect many Californians' caregiving
responsibilities. Workers are unable to use the program while
providing care to seriously ill siblings, grandparents,
grandchildren and parents-in-law. The author cites the
following in support of the need for broadening eligibility
for paid family leave:
A 2007 Senate Office of Research Report, Balancing
Work and Family, found the Employment Development
Department rejected about 10 percent of PFL claims
because the employee sought leave to care for an excluded
family member. Most of these denied claims were filed for
siblings (35 percent), followed by grandparents (19
percent) and mothers- and fathers-in-law (10 percent).
California has the second highest percentage of
multi-generational households in the country.
Nearly half of Californians are single and their
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closest relative may be a sibling.
A recent study of caregivers of Alzheimer's patients
showed that nearly 40 percent of caregivers were not
covered by the definition of family in California's PFL
law.
A study found that nearly 20 percent of primary
caregivers for chronically disabled individuals are
neither the spouse nor the child of the person receiving
care.
1)Paid Family Leave Program . PFL was enacted in 2002 to extend
disability compensation to individuals who take time off work
to care for a seriously ill child, spouse, parent, domestic
partner, or to bond with a new minor child. California was the
first state in the nation to implement a paid family leave
benefit with benefit payments beginning on July 1, 2004. The
PFL program provides weekly benefits ranging from $50 - $1011
for a maximum of six weeks within a 12 month period. In
calendar year 2011, 205,833 PFL claims were filed, and 89
percent of them were filed to take time off to bond with a new
child. The average duration of PFL claims has consistently
hovered around five weeks (out of a total possible six week
benefit period) and the average weekly benefit is $504.
2)Previous Legislation .
a. SB 1661 (Kuehl, Chapter 901 , Statutes of 2002)
created the PFL program which began on January 1, 2004.
b. SB 727 (Kuehl, Chapter 797, Statutes of 2003) made
changes that clarified the role of EDD in maintaining the
program as well as ensuring the accumulation of enough
funds to pay for the benefits.
c. SB 727 (Kuehl) of 2007, which proposed to extend the
PFL Program to caring for grandparents, grandchildren,
siblings, and parents-in-law, was vetoed by the Governor.
d. AB 804 (Yamada) of 2011, which proposed to extend
the PFL program Program to caring for grandparents,
grandchildren, siblings, and parents-in-law and was held
in the Assembly Appropriations Committee.
REGISTERED SUPPORT / OPPOSITION :
Support
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9 to 5
A Better Balance
AARP
Asian Law Caucus
Association of California Caregiver Resource Centers
Association of Regional Center Agencies
BreastfeedLA
California Alliance for Retired Americans
California Employment Lawyers Association
California Labor Federation
California Senior Legislature
California State Pipe Trades Council
California Teachers Association
California Women's Law Center
Cancer Legal Resource Center
Center for WorkLife Law
Childcare Resource and Referral Network
Childcare Resource and Referral Network
Communications Workers of America
Disability Rights Advocates
Disability Rights Education and Defense Fund
Equal Rights Advocates
Excelligence Learning Corporation
Family Caregiver Alliance
Glendale City Employees Association
Legal Aid Society- Employment Law Center (sponsor)
Legal Aid Society San Mateo County
Los Angeles Alliance for a Better Economy
Mujeres Unidas y Activas
National Association of Social Workers
National Center for Youth Law
Organization of SMUD Employees
Parent Voices
San Bernardino Public Employees
San Luis Obispo County Employees Association
Santa Rosa City Employees Association
SEIU California
UAW Local 2865
US Women's Chamber of Commerce
USC Davis School of Gerontology, Family Caregiver Support
Program
Women's Employment Rights Clinic of Golden Gate University
School of Law
Zazie Restaurant
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Opposition
None received
Analysis Prepared by : Paul Riches / INS. / (916) 319-2086