BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 375 (Campos) - School employees: sick leave: paternity and maternity leave. ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: July 8, 2015 |Policy Vote: ED. 8 - 1 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 17, 2015 |Consultant: Jillian Kissee | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: This bill expands the instances in which differential pay is provided for purposes of maternity and paternity leave to include the 12 workweek protected leave. Fiscal Impact: Potential expansion of the existing Differential Pay and Reemployment mandate for one-time activities to modify current processes to include differential pay for maternity and paternity protected leave which could drive costs in the tens of thousands statewide. To the extent this bill imposes a mandate this could create pressure to increase the K-12 mandate block grant. (Proposition 98) Background: AB 375 (Campos) Page 1 of ? Differential Pay Existing law provides differential pay to certificated employees for illness or accident. It specifies that when a person employed in a position requiring certification qualifications has exhausted all available sick leave, and continues to be absent from their duties due to illness or accident for an additional period of five school months, the amount deducted from the employee's salary for any of the additional five months, must not exceed the sum that is actually paid a substitute employed to cover for the absence. Existing law specifies the following: a) Sick leave, including accumulated sick leave, and the five-month period shall run consecutively. b) An employee shall not be provided more than one five-month period per illness or accident. (Education Code § 44977) Existing law also requires that any employee has the right to use sick leave and to obtain differential pay for absences necessitated by pregnancy, miscarriage, childbirth, and recovery. (Education Code § 44978) Pregnancy Disability Leave Existing law provides that it is unlawful to refuse to allow a female employee disabled by pregnancy, childbirth, or a related medical condition to take leave not to exceed four months. The employee is entitled to use vacation leave during this time. Once the vacation time is exhausted, the employee can receive differential pay for the remaining time, for up to five months. (Government Code § 12945 and Education Code § 44977) Protected Leave Existing law also prohibits, except under certain circumstances, the refusal to grant a request by any employee with a certain amount of service to take up to a total of 12 workweeks in a 12 month period for family care and medical leave. The employer is required to provide the employee a guarantee of employment in the same or comparable position upon the termination of the leave. The law specifies that this protected leave is separate and distinct from the pregnancy disability leave. Once an employee is cleared to return to work by a physician, the employee may take this protected leave. (Government Code § AB 375 (Campos) Page 2 of ? 12945.2) The federal Family Medical Leave Act (FMLA) and the California Family Rights Act (CFRA) provides this unpaid, job-protected leave for the purpose of bonding with a child, caring for a parent, spouse, or child with a serious health condition, or due to an employee's own serious health condition, and requires group health benefits to be maintained during the leave as if employees continued to work instead of taking leave. But there is no pay associated with the FMLA and CFRA, other than the employee's accrued vacation or other accrued time off that may apply. Once that time is exhausted, the certificated employee is unpaid for the remaining weeks. The FMLA and CFRA are only employment protected leaves. Certificated Employees Certificated employees belong to the California Teachers Association (CTA) and include, teachers, speech therapists, school psychologists, nurses, and similar classifications. Administrators are certificated employees who are not teachers or student services personnel. Administrators include principals, assistant principals, program directors or coordinators, and other certificated staff members who are not providing direct services to students. Proposed Law: This bill expands the instances in which differential pay is provided for purposes of maternity and paternity leave to include the 12 workweek protected leave. Specifically, this bill provides that when a certificated employee has exhausted all available sick leave and continues to be absent from their duties due to maternity and paternity leave pursuant to the CFRA, for a period of up to 12 school weeks, the amount deducted from the employee's salary for any of the additional 12 weeks, must not exceed the sum that is paid a substitute employee to fill in for the absence. The bill also provides that: The 12 week period is offset by the use of any period of sick leave during this time. Not more than one 12 week period per maternity or paternity leave is to be provided. AB 375 (Campos) Page 3 of ? Employees on maternity or paternity protected leave must not be denied access to differential pay. Finally, this bill provides that if its provisions conflict with a provision of a collective bargaining agreement entered into before January 1, 2016, they do not apply until expiration or renewal of that collective bargaining agreement. Related Legislation: AB 1562 (Gomez, 2014) would have amended existing law governing unpaid family and medical leave with respect to public or private school employees, as specified. This bill failed passage in this committee. Staff Comments: This bill expands the provision of differential pay to include those on both maternity and paternity protected leave who are currently ineligible for this benefit under existing law. The extent to which certificated employees will access this new benefit is unknown. Currently, after the employee's sick leave is depleted, any remaining time that the employee is absent during protected leave would be unpaid. The expanded differential pay requirement will likely provide employees on maternity and paternity leave an incentive to be absent longer than they otherwise would have been if they were not paid during this time. However, the strength of this incentive will depend on the how long the employee can go without earning his or her full salary. In 2003, the Commission on State Mandates (Commission) approved a mandate related to differential pay and reemployment lists for employees on differential leave pay. A test claim was submitted in response to a statute enacted in 1998 that required when calculating differential pay, sick leave, including accumulated sick leave, and the five-month period of differential pay shall run consecutively. Prior to this statute, there was an interpretation that accumulated sick leave ran concurrently with the five months entitlement to differential pay. This law likely increased costs to school districts as they were no longer allowed to offset the five months differential pay with any accumulated sick leave the employee might have. However, the Commission ruled that this change in calculation, while it may increase costs to school districts in some instances, it AB 375 (Campos) Page 4 of ? does not require an associated increased level of service to the public. Therefore, reimbursement of salaries related to providing differential pay was not approved. The Commission did, however, determine administrative activities related to the change in calculating differential pay to be reimbursable. Therefore, it could be assumed that the cost of similar activities could also be claimed as a result of this bill, such as one-time workload to modify existing processes to conform to the new law. If half of the state's school districts spent 2 hours at a rate of $60 per hour, including benefits, on this work, the state could be liable for reimbursement costs in about the tens of thousands. If enacted, school districts may experience significant costs pressures related to providing a benefit that was not previously required. They will not realize the savings attributed to unpaid maternity and paternity protected leave that they currently experience. Costs will ultimately be dependent upon the amount of sick leave taken by applicable employees and how long they remain absent and obtain differential pay. However, employer costs based on the differential pay program should not exceed what is normally paid to a school employee who would otherwise be working. -- END --