BILL ANALYSIS Ó SB 654 Page 1 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 SB 654 Page 2 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 SB 654 Page 3 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 SB 654 Page 4 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 SB 654 Page 5