BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 1166 (Jackson) - Unlawful employment practice: parental leave ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: April 21, 2016 |Policy Vote: L. & I.R. 4 - 1, | | | JUD. 4 - 2 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 2, 2016 |Consultant: Robert Ingenito | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: SB 1166 would (1) establish the New Parent Leave Act, making it an unlawful employment practice for specified employers to refuse to allow specified employees to take up to 12 weeks of parental leave to bond with a new child within one year of the child's birth, adoption, or foster care placement, and (2) prohibit an employer from refusing to maintain and pay for coverage under a group health plan for an employee who takes this leave. Fiscal Impact: The Department of Fair Employment and Housing (DFEH) indicates that it would incur General Fund costs of $248,000 in 2016-17, and $226,000 annually in the out years to implement the provisions of the bill. SB 1166 (Jackson) Page 1 of ? Background: In 1980, California enacted the California Fair Employment and Housing Act (FEHA), which (1) prohibits various employment discrimination practices, and (2) includes protections for employees taking pregnancy disability leave (PDL). PDL allows an employee to take a leave for a reasonable period of time, not to exceed four months, and thereafter return to work, as specified. The employee is entitled to utilize any accrued vacation leave during this period of time, which means that period during which the female employee is disabled on account of pregnancy, childbirth, or a related medical condition. PDL provides an employee the right to take "intermittent" leave for a pregnancy-related disability, as needed, which can be taken in small increments (hours, days, weeks, or months). For example, a pregnant employee, with the advice of her doctor, has the right to take a few hours of leave each day or on certain days because of severe morning sickness or for a doctor's appointment, or for other prenatal care. An employee who is taking PDL is entitled to the continuation of her health benefits for the entire duration of her leave, up to four months. Additionally, under FEHA is the California Family Rights Act (CFRA, enforced by DFEH), which makes it an unlawful employment practice for an employer of 50 or more employees to refuse to grant a request by an employee to take an unpaid family care leave of up to four months unless a refusal is necessary to prevent undue hardship to the employer's operation. Family care leave may be taken in one or more periods, as long as it does not exceed a total of four months within a 24 month period from the date the leave commenced. However, when family care leave is taken in conjunction with the maximum pregnancy disability leave, family care leave shall be for no more than one month. To be eligible for family care leave, an employee must have more than one year of continuous service with the employer and must be eligible for other employee benefits. In 1993, the federal Family and Medical Leave Act (FMLA), enforced by the United States Department of Labor, was . It requires employers of 50 of more employees to provide unpaid leave of up to 12 weeks annually to employees for similar reasons. Additionally, FMLA covers the medical condition of the employee, and permits leave for the placement of a child for SB 1166 (Jackson) Page 2 of ? foster care. Employers covered by the law are required to maintain any pre-existing health coverage during the leave period and, once the leave period is concluded, to reinstate the employee to the same or equivalent job. The federal law also specifies that FMLA shall not supersede any provision of State or local law that provides greater family or medical leave rights. AB 1460 (Moore, Chapter 827, Statutes of 1993) conformed California's employment discrimination laws under FEHA to the new requirements under the FMLA. Proposed Law: This bill would, among other things, do the following: Establish the New Parent Leave Act and make it an unlawful employment practice under FEHA for an employer, as defined, to do either of the following: o Refuse to allow an employee, with 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, upon request, to take up to 12 weeks of parental leave to bond with a new child within one year of the child's birth, adoption, or foster care placement, and provide: § if, on or before the commencement of this parental leave, the employer does not provide a guarantee of employment in the same or a comparable position upon the termination of the leave, the employer would be deemed to have refused to allow the leave; and § the employee would be entitled 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; and SB 1166 (Jackson) Page 3 of ? o Refuse to maintain and pay for coverage for an eligible employee who takes parental leave pursuant to this section under a group health plan, as defined, for the duration of the leave, not to exceed 12 weeks over the course of a 12-month period, commencing on the date that the parental leave commences, at the level and under the conditions that coverage would have been provided if the employee had continued to work in his or her position for the duration of the leave. Define "employer" to mean either: (1) any person who directly employs 10 or more persons to perform services for a wage or salary, or (2) the State, and any political or civil subdivision of the state and cities. Require that parental leave run concurrently with leave taken pursuant to CFRA and the FMLA, except for leave taken for a disability on account of pregnancy, childbirth, or related medical condition. Specify that the aggregate amount of leave taken pursuant to this bill, CFRA, or the FMLA, or any combination of these laws, except for leave taken for a disability on account of pregnancy, childbirth, or related medical conditions, shall not exceed 12 workweeks in a 12 month period. Entitle an employee to take, in addition to leave provided pursuant to this bill, CFRA, and the FMLA, leave provided pursuant to PDL if the employee is otherwise qualified for that leave. Related SB 1166 (Jackson) Page 4 of ? Legislation: SB 406 (Jackson, 2015) would have expanded various provisions of law related to unpaid family and medical leave under the California Family Rights Act (CFRA). The bill was vetoed by the Governor. Staff Comments: DFEH anticipates that the bill would generate about 400 additional complaints per year, requiring three new positions (investigators) at a cost of $248,000 in 201617, and $226,000 annually in the out-years. DFEH would not receive any additional federal funds for this work because its work share agreement with the Equal Employment Opportunity Commission excludes CFRA complaints (to which this bill pertains) and anything else not covered by the Civil Rights Act of 1964. -- END --