BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:  August 25, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          SB 654  
          (Jackson) - As Amended August 18, 2016


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY: This bill enacts the New Parent Leave Act, effective  
          January 1, 2018, to require an employer of 20 or more employees  
          to allow an eligible employee to take up to six weeks of job  
          protected parental leave to bond with a new child within one  
          year of the child's birth, adoption or foster care placement.  
          This bill also prohibits an employer from refusing to maintain  
          and pay for the employee's continued group health coverage  
          during the duration of the leave. Specifically, this bill:


          1)Defines "employer" to mean either a person who directly  
            employs (within 75 miles of the worksite) 20 or more persons  
            to perform services for a wage or salary or the state and any  
            political subdivision of the state and cities.








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          2)Authorizes an employee to utilize accrued vacation pay, paid  
            sick time, other accrued paid time off, or other paid or  
            unpaid time off negotiated with the employer, during the  
            period of parental leave.


          3)Specifies that an employee is entitled to take Pregnancy  
            Disability Leave, in addition to the leave provided in this  
            bill, if the employee is otherwise qualified for that leave.


          4)Provides that this bill does not apply to an employee subject  
            to both the California Family Rights Act (CFRA) and the  
            federal Family Medical Leave Act (FMLA).


          5)Specifies if two employees are employed by the same employer  
            and entitled to leave for the same birth, adoption or foster  
            care placement, the employer may elect to grant simultaneous  
            leave to both employees.


          6)Provides that the basic minimum duration of the leave shall be  
            two weeks.  However, an employer may grant requests for  
            additional occasions of leave lasting less than two weeks.


          7)Provides that leave under this bill must run concurrently with  
            parental leave taken pursuant to a specified provision of  
            existing law applicable to certain certificated school  
            employees.


          FISCAL EFFECT:











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          General Fund administrative costs to the Department of Fair  
          Employment and Housing (DFEH) of approximately $190,000 in the  
          first year and $170,000 on going, to process complaints  
          annually. Using CFRA complaints as a point of reference, DFEH  
          estimates they could receive 300-400 complaints and would need  
          two consultants to process these complaints.


          





          COMMENTS:


          1)Background. The California Family Rights Act (CFRA) and the  
            federal Family and Medical Leave Act (FMLA), required to be  
            taken concurrently, entitles eligible workers of employers  
            with 50 or more employees to take up to 12 workweeks of  
            unpaid, job-protected leave during a 12-month period for  
            specified family and medical reasons, including time to bond  
            with a new child through birth, adoption or foster care  
            placement, among others. CFRA and FMLA also guarantee  
            reinstatement to the same or comparable position and provide  
            continued group health coverage during the duration of the  
            leave under the same terms and conditions. 


            The Paid Family Leave (PFL) program is a partial  
            wage-replacement plan funded through employee payroll  
            deductions. PFL provides eligible employees with up to six  
            weeks of wage replacement benefits (approximately 60 percent  
            of lost wages) a minor child within one year of the birth or  
            placement of the child in connection with foster care or  
            adoption. Employers may require that employees take up to two  
            weeks of earned but unused vacation when using PFL. The law  
            does not allow employers to require employees to use sick  







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            leave. Unlike CFRA and FMLA, the PFL does not provide job  
            protection or return to work rights and does not require  
            continued group health coverage during leave. 


            Current law also authorizes Pregnancy Disability Leave (PDL).   
            PDL requires employers with five or more employees to provide  
            up to four months of unpaid, job-protected leave for  
            pregnancy, childbirth or related conditions. Employees may use  
            accrued vacation and paid sick leave during PDL. Employees are  
            entitled to reasonable accommodations and reinstatement to the  
            job held before PDL began. Employers are required to continue  
            health coverage during PDL.


          2)Purpose. This bill makes it an unlawful employment practice  
            for an employer, as defined, to refuse to allow an employee to  
            take up to six (6) weeks of parental leave to bond with a new  
            child within one year of the child's birth, adoption, or  
            foster care placement.  This bill does not apply to an  
            employee subject to both the California Family Rights Act  
            (CFRA) and the federal Family Medical Leave Act (FMLA).


            This bill is co-sponsored by the California Employment Lawyers  
            Association, Equal Rights Advocates and Legal Aid Society  
            Employment Law Center. Co-sponsors state that although new  
            birth mothers who work for a small employer (5-49 employees)  
            are able to take six to eight weeks of job protected leave to  
            recover from the birth of their child under PDL, new birth  
            fathers and new adoptive parents working for an employer of  
            the same small size have no right to job protected leave when  
            a new baby comes into their lives.  Supporters also state that  
            this bill will allow more workers to access California's  
            worker funded Paid Family Leave program without fear of losing  
            their job. 


          3)Opposition. Opponents, including the California Chamber of  







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            Commerce, are concerned the bill will overwhelm small  
            employers.  Even though the leave under this bill is not  
            "paid" by the employer, the employer will have to maintain  
            medical benefits while the employee is on leave; pay for a  
            temporary employee to cover the employee on leave, usually at  
            a higher premium given the limited duration of employment; or  
            pay overtime to other employees to cover the work of the  
            employee on leave.  Opponents also note California currently  
            provides several family-friendly leaves of absences, including  
            paid sick days, school activities leave, kin care, the paid  
            family leave program, pregnancy disability leave, and the  
            CFRA.  


          Analysis Prepared by:Misty Feusahrens / APPR. / (916) 319-2081