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.
          
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          |Version: July 8, 2015           |Policy Vote: ED. 8 - 1          |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 17, 2015   |Consultant: Jillian Kissee      |
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          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:  
           







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          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 §  








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          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.








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           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  








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          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.


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