BILL ANALYSIS                                                                                                                                                                                                    Ó



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          SENATE THIRD READING


          SB  
          654 (Jackson)


          As Amended  August 18, 2016


          Majority vote


          SENATE VOTE:  (vote not relevant)


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Labor           |4-2  |Thurmond, Chu, Lopez, |Patterson,          |
          |                |     |McCarty               |O'Donnell           |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |12-5 |Gonzalez, Bloom,      |Bigelow, Gallagher, |
          |                |     |Bonilla, Bonta,       |Jones, Obernolte,   |
          |                |     |Calderon, Eggman,     |Wagner              |
          |                |     |Eduardo Garcia,       |                    |
          |                |     |Holden, Quirk,        |                    |
          |                |     |Santiago, Wood, Chau  |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
           ------------------------------------------------------------------ 


          SUMMARY:  Enacts the "New Parent Leave Act" to, among other  
          things, require an employer of 20 or more employees to allow  








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          eligible employees to take up to six weeks of job-protected  
          parental leave to bond with a new child.  Specifically, this  
          bill:  


          1)Defines "employer" to mean either of the following:


             a)   A person who directly employs (within 75 miles of the  
               worksite) 20 or more persons to perform services for a wage  
               or salary.


             b)   The state and any political subdivision of the state and  
               cities.


          2)Makes it an unlawful employment practice for an employer to  
            refuse to allow an employee, with more than 12 months and at  
            least 1,250 hours of service with the employer, to take up to  
            six weeks of parental leave to bond with a new child within  
            one year of the child's birth, adoption or foster care  
            placement.


          3)Requires the employer to provide a guarantee of employment in  
            the same or comparable position upon return, as specified.


          4)Provides that the employee may 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.


          5)Makes it an unlawful employment practice for an employer to  
            refuse to maintain and pay for continued group health coverage  
            for eligible employees who take parental leave at the same  
            level and under the same conditions that would have been  








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            provided of the employee had continued to work during the  
            duration of the leave.


          6)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.


          7)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).


          8)Provides that in any case in which two employees who are  
            entitled to leave for the same birth, adoption or foster care  
            placement are employed by the same employer, the employer is  
            not required, but may elect, to grant simultaneous leave to  
            both employees.


          9)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.


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


          11)Provides that this bill shall become operative on January 1,  
            2018.


          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 (DFEH) of  








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          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:  This bill would establish the New Parent Leave Act  
          under the California Fair Employment and Housing Act (FEHA) and  
          make it an unlawful employment practice for an employer, as  
          defined, to refuse to allow an employee to take up to six 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 would also prohibit an employer from refusing to maintain  
          and pay for coverage under a group health plan for an employee  
          who takes this leave.


          According to the author, under current law, only those who work  
          for an employer of 50 or more are eligible for job protected  
          parental leave under California law.  That leaves many new  
          parents with an impossible choice between the wellbeing of his  
          or her new child and his or her family's financial security.


          Opponents argue that this bill will overwhelm small employers,  
          and insist that California already imposes a list of  
          family-friendly leaves of absences on employers.  They assert  
          that imposing another six week leave of absence, targeted  
          specifically at small employers, is simply too much for  
          employers to bear.  Finally, opponents assert that this bill  
          exposes employers to costly litigation.


          Analysis Prepared by:                                             
                          Ben Ebbink / L. & E. / (916) 319-2091  FN:   
          0004923








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