BILL ANALYSIS                                                                                                                                                                                                    Ó

          |SENATE RULES COMMITTEE            |                        SB 406|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |

                                UNFINISHED BUSINESS 

          Bill No:  SB 406
          Author:   Jackson (D)
          Amended:  9/4/15  
          Vote:     21  

           SENATE LABOR & IND. REL. COMMITTEE:  4-1, 4/22/15
           AYES:  Mendoza, Jackson, Leno, Mitchell
           NOES:  Stone

           AYES:  Lara, Beall, Hill, Leyva, Mendoza
           NOES:  Bates, Nielsen

           SENATE FLOOR:  23-16, 6/4/15
           AYES:  Allen, Beall, Block, De León, Galgiani, Hall, Hancock,  
            Hernandez, Hertzberg, Hill, Jackson, Lara, Leno, Leyva, Liu,  
            McGuire, Mendoza, Mitchell, Monning, Pan, Pavley, Wieckowski,  
           NOES:  Anderson, Bates, Berryhill, Cannella, Fuller, Gaines,  
            Glazer, Huff, Moorlach, Morrell, Nguyen, Nielsen, Roth,  
            Runner, Stone, Vidak
           NO VOTE RECORDED:  Hueso

           ASSEMBLY FLOOR:  Not available

           SUBJECT:   Employment: leave

          SOURCE:    California Employment Lawyers Association

                      Equal Rights Advocates 

                      Legal Aid Society  Employment Law Center 


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          DIGEST:  This bill expands various provisions of law related to  
          unpaid family and medical leave under the California Family  
          Rights Act (CFRA)

          Assembly Amendments puts the employee threshold back to existing  
          law at 50 employees at a worksite for an employee to qualify for  

          ANALYSIS:   Existing federal law, under the Family and Medical  
          Leave Act (FMLA) entitles eligible employees to take unpaid,  
          job-protected leave for up to 12 weeks in a 12-month period for:  
           the birth of a child and to care for the newborn child within  
          one year, to care for the employee's spouse, child, or parent  
          who has a serious health condition, or a serious health  
          condition that makes the employee unable to perform the  
          essential functions or his or her job. This leave, granted under  
          both the state California Family Rights Act (CFRA) and the  
          federal FMLA must be taken concurrently. (§105 of the FMLA and  
          §825.220 of FMLA regulations)

          Existing state law, under CFRA:

          1)Entitles eligible employees of covered employers to take  
            unpaid, job-protected leave for specified family and medical  

          2)Allows eligible employees to take 12 workweeks of leave in a  
            12-month period for: bonding with a newborn or adopted child,  
            caring for a family member with a serious health condition  
            (includes parent, spouse, and child), and the employee's own  
            serious health condition (excluding pregnancy).

          3)States that eligible employees must meet the following  


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             a)   Worked more than 12 months of service with the employer,  
               and who has at least 1,250 hours of service with the  
               employer during the previous 12 month period.

             b)   Worked at a location in which the employer has at least  
               50 employees within 75 miles of the employee's worksite.  

             c)   Guaranteed reinstatement to the same or comparable  
               position after taking family leave under CFRA and FMLA. 

          4)Provides the following definitions family members and serious  
            health condition: 

             a)   Child: a biological, adopted, foster, or stepchild, a  
               legal ward, or a child of a person standing in loco  
               parentis, who is either under the age of 18 or is an adult  
               dependent child.

             b)   Parent: the employee's biological, foster, or adoptive  
               parent, stepparent, legal guardian, or other person who  
               stood in loco parentis to the employee when the employee  
               was a child.

             c)   Serious health condition: an illness, injury,  
               impairment, or physical or mental condition that involves  
               either inpatient care or continuing treatment or  
               supervision by a healthcare provider.  

          5)Requires that an employee provide the employer with reasonable  
            advance notice of the need for the leave, if foreseeable, and  
            authorizes the employer to require certification by a health  
            care provider for leave requests due to serious health  

          6)States that when both parents are entitled to family and  
            medical leave in connection with the birth, adoption, or  
            foster care of a child and are employed by the same employer,  
            the employer is not required to grant both parents leave  
            totaling more than 12 weeks.  

          Existing law establishes a family temporary disability insurance  
          program, Paid Family Leave (PFL) that provides up to six weeks  


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          of wage replacement benefits to workers who take time off work  
          to care for: a seriously ill child, spouse, parent, or domestic  
          partner, siblings, grandparents, grandchildren, and  
          parents-in-laws or to bond with a minor child in connection with  
          foster care or adoption. (Unemployment Insurance Code §3301) 

          This bill expands the family members covered in CFRA including: 

          1)"Child" to include the son or daughter of a domestic partner  
            and removes the provision regarding age and dependent status  
            of the child. 

          2)Expands permissible family and medical leave to include leave  
            to care for a sibling, grandparent, grandchild, domestic  
            partner, or parent-in-law with a serious health condition. 

          3)Allows parents, when employed by the same employer, to be  
            granted up to 12 weeks of leave individually rather than  
            between both parents, removing an exception currently in  
            existing law. 


          According to the author's office, SB 406 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 eligible for  
          California Family Rights Act due to the law's eligibility  
          requirements, which means they are cannot take job-protected,  
          paid leave through the Paid Family Leave program. 

          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, 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. SB 406 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  


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          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.

          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No

          According to the Senate Appropriations Committee, DFEH will  
          incur increased General Fund costs of about $686,000 annually to  
          implement the provisions of this bill. DFEH will require an  
          augmentation of six positions and $686,000 to handle an assumed  
          increased in CFRA complaints of about 24% created by the  
          expansion of CFRA rights. DFEH will not receive any additional  
          federal funds; its work share agreement with the Equal  
          Employment Opportunity Commission excludes CFRA complaints.

          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.

          SUPPORT:   (Verified9/11/2015)

          California Employment Lawyers Association (co-source)

          Equal Rights Advocates (co-source)

          Legal Aid Society - Employment Law Center (co-source)


          Alzheimer's Association

          American Association of Retired Persons 


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          Association of American University Women

          Association of Caregiver Resource Centers

          Association of Women's Health, Obstetrics, and Neonatal Nurses 

          Breastfeeding Coalition for Ventura County


          California Alliance for Retired Americans

          California Black Health Network

          California Immigrant Policy Center

          California Labor Federation

          California Nurses Association/National Nurses United

          California Rural Legal Assistance Foundation

          California School Employees Association

          California Teachers Association

          California Women's Law Center

          California Work & Family Coalition

          Center for Law and Social Policy

          Child Care Law Center

          Coalition of California Welfare Rights Organizations, Inc.

          Communications Workers of America 9003

          Communications Workers of America District 9

          Congress of California Seniors


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          Disability Rights California

          Family Caregiving Alliance

          Forward Together

          Independent Living Resource Center 

          Jodi House of Santa Barbara

          Los Angeles Alliance for a New Economy 

          Los Angeles Alliance for a New Economy

          National Association of Social Workers

          National Council of Jewish Women

          National Partnership for Women & Families

          Organization of SMUD Employees 

          Planned Parenthood Action Fund of Santa Barbara, Ventura & San  
          Luis Obispo

          Restaurant Opportunities Center of Los Angeles

          San Bernardino Public Employees Association 

          San Diego County Court Employees Association

          San Francisco Breastfeeding Promotion Coalition

          San Luis Obispo County Employees Association 

          SEIU California

          Teamsters Local Union No. 986

          The Alliance of California for Community Empowerment

          The Arc and United Cerebral Palsy California Collaboration


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          The Women's Foundation of California

          UC Hastings Center for WorkLife Law

          Western Center on Law and Poverty

          Western Regional Advocacy Project

          OPPOSITION:   (Verified9/11/2015)

          Air Conditioning Trade Association
          Associated Builders and Contractors of California 
          Associated General Contractors
          California Association for Health Services at Home
          California Chamber of Commerce 
          California Cotton Ginners Association
          California Cotton Growers Association
          California Dairies, Inc. 
          California Farm Bureau Federation
          California Fresh Fruit Association 
          California Grocers Association
          California Landscape Contractors Association
          California League of Food Processors
          California Manufacturers and Technology Association
          California Pool & Spa Association
          California Professional Associations of Specialty Contractors
          California Restaurant Association
          California State Association of Counties
          California Trucking Association
          Claremont Chamber of Commerce
          Family Business Association
          Far West Equipment Dealers Association
          Greater Bakersfield Chamber of Commerce
          National Federation of Independent Business
          Nisei Farmers League 
          Plumbing-Heating-Cooling Contractors Association of California
          Society for Human Resource Management 
          Southwest California Legislative Council 
          The Alliance 


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          Western Agricultural Processors Association
          Western Electrical Contractors Association
          Western Growers Association
          Western Plant Health Association

          ARGUMENTS IN SUPPORT: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. Proponents contend that SB 406 will provide  
          the critical job-protection for workers who want to take paid  
          family leave by amending CFRA to expand the definition of family  
          to match PFL so that more workers are covered.

          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.

          ARGUMENTS IN OPPOSITION:A coalition of employers, including the  
          California Chamber of Commerce, opposes this bill and 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. Opponents argue  
          that as these family members in SB 406 are not covered under the  
          FMLA, this bill will potentially provide a California employer  
          with an obligation to provide up to 24 weeks of protected leave.  
          Specifically, opponents argue that under SB 406 an employee  
          could utilize his or her 12 weeks of CFRA to care for the  
          serious medical condition of a grandparent as well as still be  
          entitled to another 12-week protected leave of absence under  
          FMLA for his or her own medical condition or the medical  
          condition of his or her spouse, child or parent.  


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          Prepared by:Deanna Ping / L. & I.R. / (916) 651-1556
          9/11/15 21:05:21

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