BILL ANALYSIS Ó
SB 654
Page 1
Date of Hearing: August 29, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
SB 654
(Jackson) - As Amended August 18, 2016
-----------------------------------------------------------------
|Policy |Labor |Vote:|4-2 |
|Committee: | | | |
| | | | |
| | | | |
-----------------------------------------------------------------
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.
SB 654
Page 2
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:
SB 654
Page 3
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
SB 654
Page 4
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
SB 654
Page 5
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