Amended in Senate September 4, 2015

Amended in Senate August 31, 2015

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 Members Gomez and Burke

(Coauthor: Assembly Member Gonzalez)

February 26, 2015

An act to amend, repeal, and add begin delete Section 3301 end delete begin insert Sections 985, 2655, 3301, and 3303 end insert 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: begin delete family temporary end delete 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.

begin insert

This bill would revise the formula for determining benefits available pursuant to unemployment compensation disability law and for the family temporary disability insurance program, for periods of disability commencing after January 1, 2017, to provide a weekly benefit amount minimum of $50 and a maximum of the maximum worker’s compensation temporary disability indemnity weekly benefit amount established by the Department of Industrial Relations pursuant to existing law.

end insert

This bill would require the family temporary disability insurance program to provide up to 8 weeks of wage replacement benefits on and after January 1, begin delete 2018. This bill would, for purposes of this program on and after January 1, 2017, require the weekly benefit amount to be calculated with a specified formula. However, the amount would be prohibited from being less than $250, except as specified, and more than the maximum workers’ compensation temporary disability indemnity weekly benefit amount, as specified. end delete begin insert 2017. end insert

begin insert

Existing law deems an individual to be eligible for family temporary disability benefits if, among other things, the individual is unable to perform his or her regular or customary work for a 7-day waiting period during each disability benefit period. and prohibits payments for benefits during this waiting period.

end insert begin insert

This bill, on and after January 1, 2017, also would remove the 7-day waiting period for these benefits.

end insert

Under existing law, workers are required to pay contributions begin delete to end delete begin insert on remuneration that is equal to 4 times the maximum weekly benefit for a calendar year multiplied by 13 and divided by 55%. Existing law requires these contributions to be deposited into end insert 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.

begin insert

This bill, on and after January 1, 2017, instead would require contributions on remuneration of less than $150,000, and would require this limit to increase annually by an amount equal to the percentage increase in the state average weekly wage, as defined. No contributions would be required on remuneration exceeding that amount.

end insert

This bill, by authorizing an increase begin insert in the amount of workers’ contributions into, and an increase end insert in the expenditure of money begin delete from end delete begin insert from, end insert the Unemployment Compensation Disability Fund, would make an appropriation.

begin insert

This bill would require, by October 1, 2016, the Employment Development Department to report to the Assembly Committee on Insurance and Senate Committee on Labor and Industrial Relations specified information regarding the waiting period for disability benefits.

end insert

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

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

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 985 of the end insert begin insert Unemployment Insurance Code end insert
begin insert is amended to read: end insert

985.  

begin insert (a) end insert begin insert   end insert Section 984 shall not apply to that part of the
remuneration which, after remuneration with respect to
employment equal to four times the maximum weekly benefit for
each calendar year specified in Section 2655 multiplied by 13 and
divided by 55 percent has been paid to an individual by an
employer, is paid to the individual by the employer.

begin insert

(b) This section shall become inoperative and repealed on
January 1, 2017.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 985 is added to the end insert begin insert Unemployment Insurance
Code end insert begin insert , to read: end insert

begin insert

begin insert 985. end insert   

(a) Section 984 shall not apply to that part of the
remuneration that, when earned in 2017, exceeds one hundred
fifty thousand dollars ($150,000). Commencing on January 1,
2018, and each January 1 thereafter, this limit amount shall
increase by an amount equal to the percentage increase in the
state average weekly wage as compared to the prior year.

(b) For purposes of this section, “state average weekly wage”
means the average weekly wage paid by employers to employees
covered by unemployment insurance as reported by the United
States Department of Labor for California for the 12 months ending
on March 31 of the calendar year preceding the year in which the
disability occurred.

(c) This section shall become operative on January 1, 2017.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 2655 of the end insert begin insert Unemployment Insurance Code end insert begin insert is
amended to read: end insert

2655.  

(a) Except as provided in subdivisions (b), (c), and (d),
an individual’s “weekly benefit amount” shall be the amount
appearing in column B in the table set forth in this subdivision on
the line of which in column A of the table there appears the wage
bracket containing the amount of wages paid to the individual for
employment by employers during the quarter of his or her disability
base period in which wages were the highest.

 

A Amount of wages in  highest quarter	B Weekly benefit amount
$75-1,149.99	$50
1,150-1,174.99	51
1,175-1,199.99	52
1,200-1,224.99	53
1,225-1,249.99	54
1,250-1,274.99	55
1,275-1,299.99	56
1,300-1,324.99	57
1,325-1,349.99	58
1,350-1,374.99	59
1,375-1,399.99	60
1,400-1,424.99	61
1,425-1,449.99	62
1,450-1,474.99	63
1,475-1,499.99	64
1,500-1,524.99	65
1,525-1,549.99	66
1,550-1,574.99	67
1,575-1,599.99	68
1,600-1,624.99	69
1,625-1,649.99	70
1,650-1,674.99	71
1,675-1,699.99	72
1,700-1,724.99	73
1,725-1,749.20	74

 

(b) For periods of disability commencing on or after January 1,
1990, and prior to January 1, 1991, if the amount of wages paid
an individual for employment by employers during the quarter of
his or her disability base period in which these wages were highest
exceeds one thousand seven hundred forty-nine dollars and twenty
cents ($1,749.20), the weekly benefit amount shall be 55 percent
of these wages divided by 13, but not exceeding two hundred
sixty-six dollars ($266) or the maximum workers’ compensation
temporary disability indemnity weekly benefit amount, whichever
is less. If the benefit payable under this subdivision is not a multiple
of one dollar ($1), it shall be computed to the next higher multiple
of one dollar ($1).

(c) For periods of disability commencing on or after January 1,
1991, but before January 1, 2000, if the amount of wages paid an
individual for employment by employers during the quarter of his
or her disability base period in which these wages were highest
exceeds one thousand seven hundred forty-nine dollars and twenty
cents ($1,749.20), the weekly benefit amount shall be 55 percent
of these wages divided by 13, but not exceeding three hundred
thirty-six dollars ($336). If the benefit payable under this
subdivision is not a multiple of one dollar ($1), it shall be computed
to the next higher multiple of one dollar ($1).

(d) (1) For periods of disability commencing on or after January
1, 2000, if the amount of wages paid an individual for employment
by employers during the quarter of his or her disability base period
in which these wages were highest exceeds one thousand seven
hundred forty-nine dollars and twenty cents ($1,749.20), the weekly
benefit amount shall be equal to 55 percent of these wages divided
by 13, but not exceeding the maximum workers’ compensation
temporary disability indemnity weekly benefit amount.

(2) Notwithstanding the maximum workers’ compensation
temporary disability indemnity weekly benefit amount of paragraph
(1) of subdivision (d), if the benefit under this subdivision is not
a multiple of one dollar ($1), it shall be computed to the next higher
multiple of one dollar ($1).

begin insert

(e) This section shall become inoperative and repealed on
January 1, 2017.

end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 2655 is added to the end insert begin insert Unemployment Insurance
Code end insert begin insert , to read: end insert

begin insert

begin insert 2655. end insert   

(a) Except as provided in subdivisions (b), (c), (d), and
(e), an individual’s “weekly benefit amount” shall be the amount
appearing in column B in the table set forth in this subdivision on
the line of which in column A of the table there appears the wage
bracket containing the amount of wages paid to the individual for
employment by employers during the quarter of his or her disability
base period in which wages were the highest.

 

begin insert     A Amount of wages in  highest quarter end insert	begin insert B Weekly benefit amount end insert
begin insert   $75-1,149.99    end insert	begin insert $50 end insert
begin insert 1,150-1,174.99    end insert	begin insert  51 end insert
begin insert 1,175-1,199.99    end insert	begin insert  52 end insert
begin insert 1,200-1,224.99    end insert	begin insert  53 end insert
begin insert 1,225-1,249.99    end insert	begin insert  54 end insert
begin insert 1,250-1,274.99    end insert	begin insert  55 end insert
begin insert 1,275-1,299.99    end insert	begin insert  56 end insert
begin insert 1,300-1,324.99    end insert	begin insert  57 end insert
begin insert 1,325-1,349.99    end insert	begin insert  58 end insert
begin insert 1,350-1,374.99    end insert	begin insert  59 end insert
begin insert 1,375-1,399.99    end insert	begin insert  60 end insert
begin insert 1,400-1,424.99    end insert	begin insert  61 end insert
begin insert 1,425-1,449.99    end insert	begin insert  62 end insert
begin insert 1,450-1,474.99    end insert	begin insert  63 end insert
begin insert 1,475-1,499.99    end insert	begin insert  64 end insert
begin insert 1,500-1,524.99    end insert	begin insert  65 end insert
begin insert 1,525-1,549.99    end insert	begin insert  66 end insert
begin insert 1,550-1,574.99    end insert	begin insert  67 end insert
begin insert 1,575-1,599.99    end insert	begin insert  68 end insert
begin insert 1,600-1,624.99    end insert	begin insert  69 end insert
begin insert 1,625-1,649.99    end insert	begin insert  70 end insert
begin insert 1,650-1,674.99    end insert	begin insert  71 end insert
begin insert 1,675-1,699.99    end insert	begin insert  72 end insert
begin insert 1,700-1,724.99    end insert	begin insert  73 end insert
begin insert 1,725-1,749.20    end insert	begin insert  74 end insert

 

(b) For periods of disability commencing on or after January
1, 1990, and prior to January 1, 1991, if the amount of wages paid
an individual for employment by employers during the quarter of
his or her disability base period in which these wages were highest
exceeds one thousand seven hundred forty-nine dollars and twenty
cents ($1,749.20), the weekly benefit amount shall be 55 percent
of these wages divided by 13, but not exceeding two hundred
sixty-six dollars ($266) or the maximum workers’ compensation
temporary disability indemnity weekly benefit amount, whichever
is less. If the benefit payable under this subdivision is not a multiple
of one dollar ($1), it shall be computed to the next higher multiple
of one dollar ($1).

(c) For periods of disability commencing on or after January
1, 1991, but before January 1, 2000, if the amount of wages paid
an individual for employment by employers during the quarter of
his or her disability base period in which these wages were highest
exceeds one thousand seven hundred forty-nine dollars and twenty
cents ($1,749.20), the weekly benefit amount shall be 55 percent
of these wages divided by 13, but not exceeding three hundred
thirty-six dollars ($336). If the benefit payable under this
subdivision is not a multiple of one dollar ($1), it shall be computed
to the next higher multiple of one dollar ($1).

(d) (1) For periods of disability commencing on or after
January 1, 2000, but before January 1, 2017, if the amount of
wages paid an individual for employment by employers during the
quarter of his or her disability base period in which these wages
were highest exceeds one thousand seven hundred forty-nine
dollars and twenty cents ($1,749.20), the weekly benefit amount
shall be equal to 55 percent of these wages divided by 13, but not
exceeding the maximum workers’ compensation temporary
disability indemnity weekly benefit amount.

(2) Notwithstanding the maximum workers’ compensation
temporary disability indemnity weekly benefit amount of paragraph
(1), if the benefit under this subdivision is not a multiple of one
dollar ($1), it shall be computed to the next higher multiple of one
dollar ($1).

(e) For periods of disability commencing on and after January
1, 2017, 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 less
than eight hundred thirteen dollars ($813), then fifty dollars ($50).

(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 eight
hundred thirteen dollars ($813) or more, and is less than one-third
of the amount of the state average base period wages, 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) Except as provided in paragraph (4), 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 one-third of the amount of the state average
base period wages, or more, then either (A) 26.67 percent of the
state average weekly wage, or (B) 60 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) 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.

(f) For purposes of this section:

(1) “State average base period wages” means the state average
weekly wage multiplied by 13.

(2) “State average weekly wage” means the average weekly
wage paid by employers to employees covered by unemployment
insurance as reported by the United States Department of Labor
for California for the 12 months ending on March 31 of the
calendar year preceding the year in which the disability occurred.

(g) This section shall become operative on January 1, 2017.

end insert

begin delete SECTION 1. end delete
begin insert SEC. 5. end insert   

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 six 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 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’s “weekly benefit amount” shall be the amount
provided in Section 2655. 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 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 six 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. If the benefit is not a multiple of one dollar ($1), it shall
be computed to the next higher multiple of one dollar ($1).

(d) No more than six 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) This section shall become inoperative and shall be repealed
on January 1, 2017.

begin delete SEC. 2. end delete
begin insert SEC. 6. end insert   

Section 3301 is added to the Unemployment Insurance
Code, to read:

3301.  

(a) (1)  begin delete (A) end delete begin delete   end delete 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 begin insert up to eight weeks end insert 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 the placement of the child in connection with foster care or
adoption.

begin delete

(B) Before January 1, 2018, up to six weeks of wage
replacement benefits shall be provided.

end delete begin delete

(C) On and after January 1, 2018, up to eight weeks of wage
replacement benefits shall be provided.

end delete

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

(b)  begin insert An individual’s “weekly benefit amount” shall be the amount
provided in Section 2655. end insert 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 the placement of the child in connection with
foster care or adoption.

(c)  begin delete (1) end delete begin delete   end delete begin delete Before January 1, 2018, the end delete begin insert The end insert maximum amount
payable to an individual during any disability benefit period for
family temporary disability insurance shall be begin delete six end delete begin insert eight end insert 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. begin insert If the benefit
is not a multiple of one dollar ($1), it shall be computed to the next
higher multiple of one dollar ($1). end insert

begin delete

(2) On and after January 1, 2018, the maximum amount payable
to an individual during any disability benefit period for family
temporary disability insurance shall be eight 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.

end delete begin delete

(d) (1) Before January 1, 2018, no more than six weeks of
family temporary disability insurance benefits shall be paid within
any 12-month period.

end delete begin delete

(2) On and after January 1, 2018, no

end delete

begin insert (d) end insert begin insert   end insert begin insert No end insert more than eight 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.

begin delete

(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), except that the weekly benefit amount
shall not exceed the amount of wages paid to the individual during
the quarter of the person’s disability base period in which these
wages were highest divided by 13.

(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), but not more than
five thousand dollars ($5,000), 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 is more
than five thousand dollars ($5,000), but is not more than fifteen
thousand dollars ($15,000), then either (A) three hundred eight
dollars ($308) 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 fifteen thousand dollars ($15,000),
then either (A) eight hundred sixty five dollars ($865) 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)

end delete

begin insert (f) end insert  This section shall become operative on January 1, 2017.

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 3303 of the end insert begin insert Unemployment Insurance Code end insert begin insert is
amended to read: end insert

3303.  

begin insert (a) end insert begin insert   end insert On and after July 1, 2014, an individual shall be
deemed eligible for family temporary disability insurance benefits
equal to one-seventh of his or her weekly benefit amount on any
day in which he or she is unable to perform his or her regular or
customary work because he or she is bonding with a minor child
during the first year after the birth or placement of the child in
connection with foster care or adoption or caring for a seriously
ill child, parent, grandparent, grandchild, sibling, spouse, or
domestic partner, only if the director finds all of the following:

begin delete

(a)

end delete

begin insert (1) end insert  The individual has made a claim for temporary disability
benefits as required by authorized regulations.

begin delete

(b)

end delete

begin insert (2) end insert  The individual has been unable to perform his or her regular
or customary work for a seven-day waiting period during each
disability benefit period, with respect to which waiting period no
family temporary disability insurance benefits are payable.

begin delete

(c)

end delete

begin insert (3) end insert  The individual has filed a certificate, as required by Sections
2708 and 2709.

begin insert

(b) This section shall become inoperative and repealed on
January 1, 2017.

end insert

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 3303 is added to the end insert begin insert Unemployment Insurance
Code end insert begin insert , to read: end insert

begin insert

begin insert 3303. end insert   

(a) On and after July 1, 2014, an individual shall be
deemed eligible for family temporary disability insurance benefits
equal to one-seventh of his or her weekly benefit amount on any
day in which he or she is unable to perform his or her regular or
customary work because he or she is bonding with a minor child
during the first year after the birth or placement of the child in
connection with foster care or adoption, or caring for a seriously
ill child, parent, grandparent, grandchild, sibling, spouse, or
domestic partner, only if the director finds both of the following:

(1) The individual has made a claim for temporary disability
benefits as required by authorized regulations.

(2) The individual has filed a certificate, as required by Sections
2708 and 2709.

(b) This section shall become operative on January 1, 2017.

end insert

begin insert

begin insert SEC. 9. end insert   

end insert begin insert

(a) By October 1, 2016, the Employment Development
Department shall report to the Assembly Committee on Insurance
and the Senate Committee on Labor and Industrial Relations the
projected costs and potential benefits associated with options to
reduce, eliminate, or otherwise modify the waiting period for
disability insurance benefits.

end insert begin insert

(b) The report to be submitted pursuant to subdivision (a) shall
be submitted in compliance with Section 9795 of the Government
Code.

end insert begin insert

(c) Pursuant to Section 10231.5 of the Government Code, this
section is repealed on January 1, 2020.

end insert