BILL ANALYSIS Ó AB 375 Page 1 Date of Hearing: May 27, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 375 (Campos) - As Amended May 4, 2015 ----------------------------------------------------------------- |Policy |Education |Vote:|6 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: YesReimbursable: Yes SUMMARY: This bill expands the provision of differential pay to certificated school employees for purposes of maternity or paternity leave. Current law provides this benefit for leave AB 375 Page 2 related to illness or accident. Specifically, this bill: 1)Specifies an employee shall not be provided more than one five-month period per maternity leave or paternity leave. However, if a school year terminates before the five-month period is exhausted, the employee may take the balance of the five-month period in a subsequent school year. 2)Specifies, to the extent that the changes made by this measure conflict with a provision of a collective bargaining agreement entered into by a public school employer and an exclusive bargaining representative before January 1, 2016, the changes made by this measure shall not apply until expiration or renewal of that collective bargaining agreement. FISCAL EFFECT: 1)Unknown Proposition 98/GF state mandated reimbursable costs associated with the expansion of the existing Differential Pay and Reemployment mandate (see comments). 2)This bill results in increased employer costs to provide differential pay to employees not currently eligible for this benefit. Employer costs based on the differential pay program should not exceed what is normally paid to a school employee who would otherwise be working; however, this bill may place additional cost pressures on school district budgets to the extent they no longer experience cost savings as a result of not paying employees during a leave of absence due to maternity and paternity leave. COMMENTS: AB 375 Page 3 1)Purpose. The Moore-Brown-Roberti Family Rights Act (CFRA) is the state-law equivalent of the federal Family and Medical Leave Act (FMLA). Both acts provide for up to 12 weeks of unpaid family and medical leave for public and private employees. During this time, the certificated employee may be able to use accrued sick leave, but once that time is exhausted, the certificated employee is unpaid for the remaining weeks. This bill would extend differential pay through the 12 week leave period under FMLA for both mothers and fathers. Differential pay is calculated by subtracting the cost of a substitute employee from the certificated employee's salary. As an example, if the certificated employee made $50,000 and the substitute cost $35,000, then the certificated employee would be paid the difference of $15,000 during maternity or paternity leave, after exhausting all accrued sick time. The California Teachers Association (CTA) supports the bill and states maternity leave is essential, not only for a mother's full recovery from childbirth, but also to facilitate a stronger mother-child bond. CTA notes when more workers are able to take leave, they're more likely to choose to remain in the labor market, and paid parental leave is associated with higher employment in economies around the world. 2)Differential pay mandate. On July 31, 2003, the Commission on State Mandates (CSM) adopted the Statement of Decision for the Differential Pay and Reemployment program. The CSM found that certain administrative activities around the provision of differential pay constituted a new program or higher level of service. Accordingly, the CSM approved a test claim for the following reimbursable activities: AB 375 Page 4 a) When calculating differential pay, the sick leave, including accumulated sick leave, and the five-month period of differential pay shall run consecutively. (One-time administrative activity for shifting the calculation of differential pay from running concurrently to consecutively with accumulated sick leave.) b) When a certificated employee is not medically able to resume the duties of his or her position following the exhaustion of all sick leave and the five-month differential pay period has been exhausted, place the employee, if not placed in another position, on a reemployment list for 24 months for probationary employees, or 39 months for permanent employees. (This activity includes the one-time activity of establishing a reemployment list for this purpose, and ongoing activities of maintaining the list.) c) When the employee is medically able, return the employee to a position for which he or she is credentialed and qualified. (This activity includes the administrative duties required to process the re-employment paperwork, but not reimbursement of salary and benefits for the employee once they return to work.) This bill expands the provision of law that provides for differential pay to also include leave related to injury, maternity and paternity leave. This expansion could result in increased cost claims related to this existing mandate. On average, annual mandated costs were approximately $27,000 per year. The Differential Pay mandate is currently included in the K-12 Education Block Grant. Under the block grant, a school district, charter school, or county office of education may choose to receive a per-pupil allocation to conduct existing K-12 mandated activities rather than receive full payment under the existing claims process. The Legislature could face pressure AB 375 Page 5 to increase the mandate should this bill result in increased cost claims. Analysis Prepared by:Misty Feusahrens / APPR. / (916) 319-2081