Amended in Senate June 18, 2015

Amended in Assembly March 18, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 908

Introduced by Assembly begin delete Member end delete begin insert Members end insert Gomez begin insert and Burke end insert

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(Coauthor: Assembly Member Gonzalez)

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February 26, 2015

An act to amend Section 3301 of the Unemployment Insurance Code, relating to disability compensation, and making an appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

AB 908, as amended, Gomez. Disability compensation: family temporary disability insurance.

Existing unemployment compensation disability law provides a formula for determining benefits available to qualifying disabled individuals. For an individual who has quarterly base wages of greater than $1,749.20, the weekly benefit is calculated by multiplying base wages by 55% and dividing the result by 13. For a benefit that is not a multiple of $1, existing law provides that the benefit shall be computed to the next higher multiple of $1. However, existing law provides that this amount may not exceed the maximum workers’ compensation temporary disability indemnity weekly benefit amount.

Under existing law, the family temporary disability insurance program provides up to 6 weeks of wage replacement benefits to workers who take time off work to care for specified persons, or to bond with a minor child within one year of the birth or placement of the child in connection with foster care or adoption. Existing law defines “weekly benefit amount” for purposes of this program to mean the amount of benefits available to qualifying disabled individuals pursuant to unemployment compensation disability law.

This bill would require the family temporary disability insurance program to provide up to 10 weeks of wage replacement benefits. This bill would, for purposes of this program, require the weekly benefit amount to be calculated with a specified formula. However, the amount would be prohibited from being less than $250 and more than the maximum workers’ compensation temporary disability indemnity weekly benefit amount, as specified.

Under existing law, workers are required to pay contributions to the Unemployment Compensation Disability Fund, a special fund in the State Treasury, and those funds are continuously appropriated for the purpose of providing disability benefits and making payment of expenses in administering those provisions.

This bill, by authorizing an increase in the expenditure of money from the Unemployment Compensation Disability Fund, would make an appropriation.

Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 3301 of the Unemployment Insurance
Code is amended to read:

3301.  

(a) (1) The purpose of this chapter is to establish, within
the state disability insurance program, a family temporary disability
insurance program. Family temporary disability insurance shall
provide up to 10 weeks of wage replacement benefits to workers
who take time off work to care for a seriously ill child, spouse,
parent, grandparent, grandchild, sibling, or domestic partner, or
to bond with a minor child within one year of the birth or begin insert the end insert
placement of the child in connection with foster care or adoption.

(2) Nothing in this chapter shall be construed to abridge the
rights and responsibilities conveyed under the CFRA or pregnancy
disability leave.

(b) An individual is eligible to receive family temporary
disability insurance benefits equal to one-seventh of his or her
weekly benefit amount for each full day during which he or she is
unable to work due to caring for a seriously ill or injured family
member or bonding with a minor child within one year of the birth
or begin insert the end insert placement of the child in connection with foster care or
adoption.

(c) The maximum amount payable to an individual during any
disability benefit period for family temporary disability insurance
shall be 10 times his or her “weekly benefit amount,” but in no
case shall the total amount of benefits payable be more than the
total wages paid to the individual during his or her disability base
period.

(d) No more than 10 weeks of family temporary disability
insurance benefits shall be paid within any 12-month period.

(e) An individual shall file a claim for family temporary
disability insurance benefits not later than the 41st consecutive
day following the first compensable day with respect to which the
claim is made for benefits, which time shall be extended by the
department upon a showing of good cause. If a first claim is not
complete, the claim form shall be returned to the claimant for
completion and it shall be completed and returned not later than
the 10th consecutive day after the date it was mailed by the
department to the claimant, except that such time shall be extended
by the department upon a showing of good cause.

(f) For purposes of this chapter, an individual’s “weekly benefit
amount” shall be as follows:

(1) When the amount of wages paid to the individual for
employment by employers during the quarter of the individual’s
disability base period in which these wages were highest is not
more than four thousand sixty three dollars ($4,063), then two
hundred fifty dollars ($250).

(2) When the amount of wages paid to the individual for
employment by employers during the quarter of the individual’s
disability base period in which these wages were highest is more
than four thousand sixty three dollars ($4,063), and does not exceed
25 percent of the amount of the annual full-time minimum wage
level, then 80 percent of the amount of wages paid to the individual
for employment by employers during the quarter of the individual’s
disability base period in which these wages were highest, divided
by 13. If the weekly benefit amount is not a multiple of one dollar
($1), it shall be computed to the next higher multiple of one dollar
($1).

(3) When the amount of wages paid to the individual for
employment by employers during the quarter of the individual’s
disability base period in which these wages were highest exceeds
25 percent of the amount of the annual full-time minimum wage
level, but does not exceed 75 percent of the amount of the annual
full-time minimum wage level, then either (A) 20 percent of the
annual full-time minimum wage level divided by 13 or (B) 75
percent of the amount of wages paid to the individual for
employment by employers during the quarter of the individual’s
disability base period in which these wages were highest divided
by 13, whichever amount is greater. If the weekly benefit amount
is not a multiple of one dollar ($1), it shall be computed to the next
higher multiple of one dollar ($1).

(4) Except as provided in paragraph (5), when the amount of
wages paid to the individual for employment by employers during
the quarter of the individual’s disability base period in which these
wages were highest exceeds 75 percent of the amount of the annual
full-time minimum wage level, then either (A) 56.25 percent of
the annual full-time minimum wage level divided by 13 or (B) 65
percent of the amount of wages paid to the individual for
employment by employers during the quarter of the individual’s
disability base period in which these wages were highest divided
by 13, whichever amount is greater. If the weekly benefit amount
is not a multiple of one dollar ($1), it shall be computed to the next
higher multiple of one dollar ($1).

(5) An individual’s “weekly benefit amount” shall not exceed
the maximum workers’ compensation temporary disability
indemnity weekly benefit amount established by the Department
of Industrial Relations pursuant to Section 4453 of the Labor Code.

(g) For purposes of this chapter, the “annual full-time minimum
wage level” means 2,000 hours multiplied by the hourly minimum
wage in effect pursuant to Section 1182.12 of the Labor Code.