BILL ANALYSIS Ó SB 406 Page 1 SENATE THIRD READING SB 406 (Jackson) As Amended September 1, 2015 Majority vote SENATE VOTE: 23-16 ------------------------------------------------------------------ |Committee |Votes|Ayes |Noes | | | | | | | | | | | | | | | | |----------------+-----+----------------------+--------------------| |Labor |5-2 |Roger Hernández, Chu, |Harper, Patterson | | | |Low, McCarty, | | | | |Thurmond | | | | | | | |----------------+-----+----------------------+--------------------| |Appropriations |12-5 |Gomez, Bloom, Bonta, |Bigelow, Chang, | | | |Calderon, Nazarian, |Gallagher, Jones, | | | |Eggman, Eduardo |Wagner | | | |Garcia, Holden, | | | | |Quirk, Rendon, Weber, | | | | |Wood | | | | | | | | | | | | ------------------------------------------------------------------ SUMMARY: Expands various provisions of law related to unpaid SB 406 Page 2 family and medical leave under the California Family Rights Act (CFRA). Specifically, this bill: 1)Provides that the law applies to any person who directly employs 25 or more employees (compared with 50 or more employees under existing law). 2)Amends the definition of "child" to include the son or daughter of a domestic partner and deletes provisions regarding the age and dependent status of a child. 3)Expands permissible leave to include leave to care for a sibling, grandparent, grandchild, parent-in-law, or domestic partner with a serious health condition. 4)Removes an exception when both parents are employed by the same employer, thereby requiring the employer to grant each employee up to 12 weeks of leave individually rather than between both parents, as currently in existing law. 5)Makes related and conforming changes. FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill would result in General Fund administrative costs to the Department of Fair Employment and Housing of approximately $700,000. The impact to other state agencies is expected to be minimal since the state generally provides this benefit already. COMMENTS: According to the author, this bill ensures that eligible workers can keep their jobs when they need time off to care for their families. Over 40% of the workforce is not SB 406 Page 3 eligible for California Family Rights Act due to the law's eligibility. The current definition of family under CFRA includes minor or adult dependent children, parents, spouses, and registered domestic partners. Recently, the definition of family members for Paid Family Leave (PFL), a program that allows workers to receive partial wage replacement benefits while taking care of seriously ill family members, was expanded to include siblings, grandparents, grandchildren, and parents-in-law. This bill seeks to include these family members under CFRA, allowing employees to take job-protected leave when utilizing their PFL benefits. Currently, employees may receive this monetary benefit when caring for these additional family members but risk losing their jobs to provide such care. This bill would also allow for parents that are entitled to leave and employed by the same employer to receive 12 weeks of family and medical leave individually in connection with the birth, adoption, or foster care of a child. According to supporters, the restrictions on family caregiving under CFRA fail to account for the diversity of California households and the importance of caregiving by extended family members. Supporters bring attention to various study findings including: a study of Alzheimer's patients which found that 40% of caregivers were not covered under the narrow definition of family in CFRA, one study that found that nearly 20% of primary caregivers for chronically disabled individuals are neither the spouse nor the child of the person receiving care, and another finding that one in twelve caregivers provides care to a parent-in-law, grandparent, or grandparent-in-law. Supporters argue that most leave taken under the CFRA is short, minimizing the impact on employers. They state that nearly half of all leave taken is for 10 days or less. Moreover, they cite data from the Employment Development Department (EDD) that SB 406 Page 4 expanding this bill to cover employers with 25 or more employees will impact less than 6% of businesses in California. A coalition of employers, including the California Chamber of Commerce, opposes this bill and argues that it will overwhelm small businesses by mandating businesses with 25 or more employees to provide a 12-week protected leave of absence. Opponents contend that this will put a greater burden on both small and large businesses while creating an even further disconnect from federal law. Additionally, opponents argue that expanding the family members for whom an employee may take a 12-week protected leave of absence to care for to include a grandparent, a grandchild, and siblings will negatively impact California employers. Opponents also argue that California already has extensive family-related protected leaves of absence and that this bill is therefore unnecessary. Analysis Prepared by: Ben Ebbink / L. & E. / (916) 319-2091 FN: 0001630