BILL NUMBER: AB 908 AMENDED
BILL TEXT
AMENDED IN SENATE SEPTEMBER 4, 2015
AMENDED IN SENATE AUGUST 31, 2015
AMENDED IN SENATE JUNE 18, 2015
AMENDED IN ASSEMBLY MARCH 18, 2015
INTRODUCED BY Assembly Members Gomez and Burke
(Coauthor: Assembly Member Gonzalez)
FEBRUARY 26, 2015
An act to amend, repeal, and add Section 3301
Sections 985, 2655, 3301, and 3303 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 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.
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, 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. 2017.
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.
This bill, on and after January 1, 2017, also would remove the
7-day waiting period for these benefits.
Under existing law, workers are required to pay contributions
to 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 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, 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.
This bill, by authorizing an increase in the amount of
workers' contributions into, and an increase in the expenditure
of money from from, the Unemployment
Compensation Disability Fund, would make an appropriation.
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.
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 985 of the
Unemployment Insurance Code is amended to read:
985. (a) 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.
(b) This section shall become inoperative and repealed on January
1, 2017.
SEC. 2. Section 985 is added to the
Unemployment Insurance Code , to read:
985. (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.
SEC. 3. Section 2655 of the
Unemployment Insurance Code is amended to read:
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 B
Amount of wages Weekly
in benefit
highest quarter 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).
(e) This section shall become inoperative and repealed on January
1, 2017.
SEC. 4. Section 2655 is added to the
Unemployment Insurance Code , to read:
2655. (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.
A B
Amount of wages Weekly
in benefit
highest quarter 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, 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.
SECTION 1. SEC. 5. 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.
SEC. 2. SEC. 6. Section 3301 is
added to the Unemployment Insurance Code, to read:
3301. (a) (1) (A) 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 eight
weeks 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.
(B) Before January 1, 2018, up to six weeks of wage replacement
benefits shall be provided.
(C) On and after January 1, 2018, up to eight weeks of wage
replacement benefits shall be provided.
(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 the placement of the child in
connection with foster care or adoption.
(c) (1) Before
January 1, 2018, the The maximum amount payable
to an individual during any disability benefit period for family
temporary disability insurance shall be six
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. If the benefit is not a multiple of one dollar ($1), it
shall be computed to the next higher multiple of one dollar ($1).
(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.
(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.
(2) On and after January 1, 2018, no
(d) No 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.
(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)
(f) This section shall become operative on January 1,
2017.
SEC. 7. Section 3303 of the
Unemployment Insurance Code is amended to read:
3303. (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 all of the following:
(a)
(1) The individual has made a claim for temporary
disability benefits as required by authorized regulations.
(b)
(2) 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.
(c)
(3) The individual has filed a certificate, as required
by Sections 2708 and 2709.
(b) This section shall become inoperative and repealed on January
1, 2017.
SEC. 8. Section 3303 is added to the
Unemployment Insurance Code , to read:
3303. (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.
SEC. 9. (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.
(b) The report to be submitted pursuant to subdivision (a) shall
be submitted in compliance with Section 9795 of the Government Code.
(c) Pursuant to Section 10231.5 of the Government Code, this
section is repealed on January 1, 2020.