Amended in Senate February 24, 2016

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

begin delete

(Coauthor: Assembly Member Gonzalez)

end delete begin insert

(Principal coauthor: Senator Jackson)

end insert begin insert

(Coauthors: Assembly Members Alejo, Bonilla, Bonta, Gonzalez, Holden, Levine, Nazarian, and Weber)

end insert

February 26, 2015

An act to begin delete amend, repeal, and add Sections 985, 2655, 3301, and 3303 of end delete begin insert amend Section 2655 of, to amend, repeal, and add Section 3303 of, and to add and repeal Section 2655.1 of, end insert the Unemployment Insurance Code, relating to disability compensation, and making an appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

AB 908, as amended, Gomez. Disability compensation: 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, begin delete 2017, end delete begin insert 2018, but before January 1, 2022, end insert to provide a weekly benefit amount minimum of $50 begin delete and a maximum of end delete begin insert and increase the wage replacement rate to specified percentages, but not to exceed end insert the maximum begin delete worker’s end delete begin insert workers end insert begin insert ’ end insert compensation temporary disability indemnity weekly benefit amount established by the Department of Industrial Relations pursuant to existing law.

begin delete

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, 2017.

end delete

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, begin delete 2017, end delete begin insert 2018, end insert also would remove the 7-day waiting period for these benefits.

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Under existing law, workers are required to pay contributions 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.

end delete begin delete

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 delete

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

This bill would require, by begin delete October end delete begin insert July end insert 1, begin delete 2016, end delete begin insert 2017, end insert 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. begin insert The bill also would require, by March 1, 2021, the department to prepare a report to the Legislature and specified legislative committees on levels and trends regarding utilization, costs, and rates with respect to family leave and disability insurance. 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:

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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.

end delete

begin delete

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.

end delete

begin delete SEC. 3. end delete
begin insert SECTION 1. end insert   

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

2655.  

(a) Except as provided in subdivisions (b), (c), begin delete and end delete (d),
begin insert (e), and (f), end insert 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, begin insert but before January 1, 2018, end insert 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
begin delete (1) of subdivision (d), end delete begin insert (1), end insert 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 delete

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

end delete begin insert

(e) For periods of disability commencing on and after January
1, 2018, but before January 1, 2022, an individual’s “weekly
benefit amount” shall be as follows:

end insert begin insert

(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 nine hundred twenty-nine dollars ($929), then fifty dollars
($50).

end insert begin insert

(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 nine
hundred twenty-nine dollars ($929) or more, and is less than
one-third of the amount of the state average quarterly wage, then
70 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).

end insert begin insert

(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
quarterly wage, or more, then either (A) 23.3 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).

end insert begin insert

(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.

end insert begin insert

(f) (1) For periods of disability commencing on or after January
1, 2022, 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 established
by the Department of Industrial Relations pursuant to Section 4453
of the Labor Code.

end insert begin insert

(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).

end insert begin insert

(g) For purposes of this section:

end insert begin insert

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

end insert begin insert

(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.

end insert

begin delete

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 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, 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
80percent 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.

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. 6.  

Section 3301 is added to the Unemployment Insurance
Code, 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 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.

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

end delete

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 2655.1 is added to the end insert begin insert Unemployment
Insurance Code end insert begin insert , to read: end insert

begin insert

begin insert 2655.1. end insert   

(a) By March 1, 2021, the department shall prepare
and submit to the Legislature, including the legislative committees
described in subdivision (c), a report that includes data on levels
and trends between January 1, 2017, and the latest date for which
data is available in 2020, in the following:

(1) Utilization of paid family leave and disability insurance by
income level, including, but not limited to, utilization of paid family
leave by low-wage workers.

(2) Benefit costs.

(3) Supplemental disability insurance contribution rates.

(b) The report described in subdivision (a) shall also include
projections of utilization and costs for three subsequent years
beginning January 1, 2022, with the assumption that the wage
replacement rates that are in effect on January 1, 2018, remain
in effect.

(c) A report submitted pursuant to this section shall be submitted
in compliance with Section 9795 of the Government Code and
shall be submitted to the Assembly Committee on Insurance, the
Senate Committee on Labor and Industrial Relations, the Assembly
and Senate Committees on Appropriations, the Assembly
Committee on Budget, and the Senate Committee on Budget and
Fiscal Review.

(d) Pursuant to Section 10231.5 of the Government Code, this
section is repealed on January 1, 2024.

end insert

begin delete SEC. 7. end delete
begin insert SEC. 3. end insert   

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:

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

(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.

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

(b) This section shall become inoperative and begin insert shall be end insert repealed
on January 1, begin delete 2017. end delete begin insert 2018. end insert

begin delete SEC. 8. end delete
begin insert SEC. 4. end insert   

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, begin delete 2017. end delete
begin insert 2018. end insert

begin delete SEC. 9. end delete
begin insert SEC. 5. end insert   

(a) By begin delete October end delete begin insert July end insert 1, begin delete 2016, end delete begin insert 2017, end insert 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, begin delete 2020. end delete begin insert 2021. end insert