BILL NUMBER: AB 908 CHAPTERED
BILL TEXT
CHAPTER 5
FILED WITH SECRETARY OF STATE APRIL 11, 2016
APPROVED BY GOVERNOR APRIL 11, 2016
PASSED THE SENATE FEBRUARY 29, 2016
PASSED THE ASSEMBLY MARCH 3, 2016
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
INTRODUCED BY Assembly Members Gomez and Burke
(Principal coauthor: Senator Jackson)
(Coauthors: Assembly Members Alejo, Bonilla, Bonta, Gonzalez,
Holden, Levine, Nazarian, and Weber)
FEBRUARY 26, 2015
An act to amend Section 2655 of, to amend, repeal, and add Section
3303 of, and to add and repeal Section 2655.1 of, the Unemployment
Insurance Code, relating to disability compensation, and making an
appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 908, 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, 2018, but before January 1,
2022, to provide a weekly benefit amount minimum of $50 and increase
the wage replacement rate to specified percentages, but not to exceed
the maximum workers' compensation temporary disability indemnity
weekly benefit amount established by the Department of Industrial
Relations pursuant to existing law.
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, 2018, also would remove the
7-day waiting period for these benefits.
This bill, by authorizing an increase in the expenditure of money
from the Unemployment Compensation Disability Fund, would make an
appropriation.
This bill would require, by July 1, 2017, 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. 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.
Appropriation: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 2655 of the Unemployment Insurance Code is
amended to read:
2655. (a) Except as provided in subdivisions (b), (c), (d), (e),
and (f), 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, 2018, 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,
2018, but before January 1, 2022, 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 nine hundred
twenty-nine dollars ($929), 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 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).
(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).
(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) (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.
(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).
(g) For purposes of this section:
(1) "State average quarterly wage" 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.
SEC. 2. Section 2655.1 is added to the Unemployment Insurance
Code, to read:
2655.1. (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.
SEC. 3. 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 shall be repealed on
January 1, 2018.
SEC. 4. 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, 2018.
SEC. 5. (a) By July 1, 2017, 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, 2021.