BILL ANALYSIS                                                                                                                                                                                                    �






                 Senate Committee on Labor and Industrial Relations
                                 Ted W. Lieu, Chair

          Date of Hearing: June 27, 2012               2011-2012 Regular 
          Session                              
          Consultant: Alma Perez                       Fiscal:Yes
                                                       Urgency: No
          
                                  Bill No: AB 2039
                                   Author: Swanson
                      As Introduced/Amended: February 23, 2012
          

                                       SUBJECT
          
                              Family and medical leave


                                      KEY ISSUE

          Should employees be allowed to take unpaid leave to care for an 
          adult child, sibling, grandparent, grandchild, parent-in-law or 
          domestic partner with a serious health condition?
          

                                       PURPOSE
          
          To extend family care and medical leave rights for employees to 
          care for certain persons not currently allowed.


                                      ANALYSIS
          
           Under the existing California Family Rights Act (CFRA),  also 
          known as the Moore-Brown-Roberti Family Rights Act, employers 
          with 50 or more employees are required to provide covered 
          employees, upon request, with up to 12 weeks of job protected 
          unpaid leave during any 12-month period for family care and 
          medical leave for the following reasons:

             �    Bond with a child who was born to, adopted, or placed 
               for foster care with, the employee. 
             �    Care for the employee's parent, spouse, or child who has 
               a serious health condition.
             �    Because the employee's own serious health condition 
               renders him or her unable to perform the functions of the 









               job. (except for leave taken for pregnancy, childbirth, or 
               related medical conditions which are covered by other types 
               of leave) 

           Existing CFRA additionally provides that, among other things  :

             1)   To be eligible for CFRA leave, an employee must have 
               more than 12 months of service with the employer, and at 
               least 1,250 hours of service, during the previous 12 
               months. 

             2)   The leave is not deemed granted unless the employer 
               provides the employee with a guarantee of employment in the 
               same or a comparable position upon their return. 

             3)   "Employer" is defined as a person who directly employs 
               50 or more persons to perform services for a wage or salary 
                or  the state, any political subdivision of the state and 
               cities. 

             4)   "Child" is defined as a biological, adopted, foster, or 
               stepchild, a legal ward, or a child of a person standing in 
               loco parentis, who is either under the age of 18 or is an 
               adult dependent child. 

             5)   "Parent" is defined as the employee's biological, 
               foster, or adoptive parent, stepparent, legal guardian, or 
               other person who stood in loco parentis to the employee 
               when the employee was a child. 

             6)   "Serious health condition" is defined as an illness, 
               injury, impairment, or physical or mental condition that 
               involves either inpatient care or continuing treatment or 
               supervision by a health care provider.

             7)   The employee provide the employer with reasonable 
               advance notice of the need for the leave, if foreseeable, 
               and authorizes the employer to require certification by a 
               health care provider for leave requests due to a serious 
               health condition. 
           

          Hearing Date:  June 27, 2012                            AB 2039  
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          This Bill  would amend the California Family Rights Act (CFRA) to 
          expand the definition of family members for which the employee 
          could take leave to care for.   Specifically, this bill: 

             1)   Amends the definition of "child" to eliminate reference 
               to the age and dependent status of the child (thereby 
               authorizing leave to care for an adult child).  


             2)   Expands the scope of permissible family and medical 
               leave to include leave to care for a sibling, grandparent, 
               grandchild, or parent-in-law with a serious health 
               condition.


             3)   Specifies that permissible leave includes leave to care 
               for a domestic partner with a serious health condition. 


             4)   Provides definitions for "domestic partner," 
               "parent-in-law," and "sibling."


                                          

                                      COMMENTS
          
          1.  Background on CFRA and FMLA:

            Current law provides employees with options for paid and 
            unpaid leave through programs such as California Family Rights 
            Act (CFRA) and the federal Family Leave Act (FMLA).  In 
            general, FMLA and CFRA contain similar provisions and run 
            concurrently for all purposes other than disabilities due to 
            pregnancy or pregnancy-related conditions.  

            The CFRA was enacted in 1991 and amended in 1993 to bring the 
            statue into conformity with the Family and Medical Leave Act 
            (FMLA).  Both statutes entitle eligible employees working for 
            a covered employer to take unpaid, job-protected leave for up 
            to 12 weeks.  Under FMLA, eligible employees can take twelve 
            workweeks of leave in a 12-month period for: 
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               1)     The birth of a child and to care for the newborn 
                 child within one year of birth;
               2)     The placement with the employee of a child for 
                 adoption or foster care and to care for the newly placed 
                 child within one year of placement;
               3)     To care for the employee's spouse, child, or parent 
                 who has a serious health condition;
               4)     A serious health condition that makes the employee 
                 unable to perform the essential functions of this or her 
                 job;
               5)     Any qualifying exigency arising out of the fact that 
                 the employee's spouse, son, daughter, or parent is a 
                 covered military member on "covered active duty," or

             Additionally, under FMLA, an employee can take twenty-six 
               workweeks of leave during a
             single 12 month period to care for a covered servicemember 
               with a serious injury or illness if
             the eligible employee is the servicemember's spouse, son, 
               daughter, parent, or next of kin. 

          2.  Need for this bill?

            Current law authorizes employees to take leave to care for 
            his/her self or a parent, spouse, or child with a serious 
            medical condition.  However, employees cannot take leave to 
            attend to an ill sibling, grandparent, grandchild, 
            parent-in-law, adult child, or domestic partner.  In February 
            of 2007, the Senate Office of Research published a study 
            entitled "Balancing Work and Family".  The study reported 
            that, for the period of July 1, 2004 to June 30, 2006, 10% of 
            all rejected claims were for family members not covered under 
            Paid Family Leave.  Most of the denied claims were for 
            siblings (35%, or 191 people), grandparents (19%, or 104 
            people), and in-laws (10%, or 52 people).  This report only 
            studied claims filed under the Paid Family Leave program; 
            however, it offers a view of the types of claims filed by 
            employees based on their needs.  Additionally, according to 
            the National Center for Children in Poverty, the prospect of 
            lost wages often discourages low-wage workers from taking time 
            off to care for a sick family member. 

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            Although unpaid, CFRA offers employees the opportunity to care 
            for their loved ones knowing that their job will be waiting 
            upon their return.  This bill would extend family and medical 
            leave rights to employees wishing to care for an adult child, 
            sibling, grandparent, grandchild, parent-in-law, or domestic 
            partner. The author believes that this bill will strengthen 
            the crucial protections for working families contained in the 
            CFRA.

          3.  Other State Family Leave Laws:

            There are several states that have more expansive definitions 
            of family in their family leave laws.  For example, 
            Connecticut, Alaska, Oregon,  Rhode Island, and Wisconsin all 
            have family leave laws that include a spouse's parent (CT Gen. 
            Stat. 31-51kk(7); AL 39.20.550(4); OR Rev. Stat. 659.A.150; RI 
            Gen. Laws 28-48-1; Wis. Stat. Ann. 103.10(1)(f)).  Washington 
            allows workers who have sick leave to use it to care for a 
            child, spouse, parent, parent-in-law, or grandparent with a 
            serious health condition or emergency condition (WA Rev. Code 
            49/12/270), among others.   

            Perhaps the most expansive definitions are those contained in 
            the family leave laws of the District of Columbia and Hawaii.  
            The District of Columbia allows leave to care for any person 
            to whom the employee is related by blood, legal custody, or 
            marriage and anyone with whom an employee lives and has a 
            committed relationship (DC Code Ann. �501-517).  Hawaii allows 
            leave to care for a child, parent, parent-in-law, spouse, 
            reciprocal beneficiary, legal guardian, grandparent, or 
            grandparent-in-law (Haw. Rev. Stat. 391-1).      

          4.  Proponent Arguments  :
            
            According to the author and proponents, CFRA guarantees 
            workers the critical right to take time off from work to care 
            for their own or a family member's serious health condition.  
            Unfortunately, they argue, because of an overly narrow 
            definition of family, CFRA excludes many family members from 
            the ability to provide care for their loved ones.  Proponents 
            argue that CFRA fails to account for the diversity of 
            California households and the importance of caregiving by 
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            extending family members.  Proponents point to a recent study 
            of caregivers of Alzheimer's patients which found that over 40 
            percent of caregivers were not covered under the narrow 
            definition of family in CFRA.  

            Proponents argue that California has the second highest 
            percentage of multi-generational households in the country.  
            Additionally, almost half of Californians are single and their 
            closest relative may be a sibling. They argue that when 
            serious illness strikes, many Californians turn to their 
            family for much-needed care and support.  Proponents support 
            this measure because it recognizes the importance of family 
            caregiving and helps workers caring for family members balance 
            the demands of work and family.  

            According to proponents, family leave has proven to be an 
            important and cost effective means by which employees can take 
            care of ill relatives and they argue that the concerns raised 
            by opponents when unpaid family leave was first introduces 
            have turned out to be groundless.  They believe the expansions 
            proposed with this bill will have a minimal impact on 
            employers.  Proponents note that eight states and the District 
            of Columbia use a more expansive definition of "family member" 
            for whose illness an employee may take a family medical leave. 
            They believe that the legislative changes proposed with this 
            bill will make California a leader in the creation of 
            family-friendly workplaces.  

          5.  Opponent Arguments  :

            Opponents argue that this bill would overburden California 
            employers by significantly expanding the type of individuals 
            or circumstances under which employees can take protected 
            leave of absence under CFRA.  According to opponents, due to 
            additional leave requirements this bill would provide to both 
            state and private sector employees, it would create additional 
            cost pressures to a still struggling budget deficit and 
            employers. 

            Opponents argue that after meeting minimum qualifications, an 
            employee's leave under CFRA is absolute and must be allowed, 
            regardless of the undue burden it will create on the employer. 
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             They argue that employers could have multiple employees 
            already out of work on a variety of protected leaves afforded 
            under California law (workers' compensation leave, pregnancy 
            disability leave, bone marrow leave) and still must allow any 
            other employee who meets the qualifications of CFRA to have a 
            protected 12 week leave of absence as well.  Opponents argue 
            that once out on leave, the employer must hire and train a 
            temporary employee to cover the employees' duties, pay an 
            existing employee a higher wage or overtime to take on the 
            duties, or suffer decreased productivity until the existing 
            employee out on leave is ready to return to work.  

            According to opponents, given the fact that the proposed 
            individuals under the bill are not covered by FMLA, an 
            employee could utilize his/her 12 weeks of CFRA to care for 
            the serious medical condition of a parent-in-law, and then 
            take another 12 week leave under FMLA to care for the medical 
            condition for his/her spouse, child, or parent.  Opponents 
            argue that this significant expansion of leave for employees 
            would create such a substantial burden on employers that it 
            would discourage employers from growing to more than 50 
            employees in order to avoid triggering CFRA/FMLA or from 
            locating to this state.  They argue that California simply 
            cannot afford to impede growth and overburden employers with 
            such a requirement.  

          6.  Prior Legislation  :

            AB 59 (Swanson) of 2011 and AB 849 (Swanson) of 2009, both 
            were identical to this bill and both died in Assembly 
            Appropriations Committee suspense file. 

            AB 537 (Swanson) of 2007:  Vetoed by the Governor  
            AB 537 was also identical but was the bill where the current 
            language was crafted through various versions.  The bill was 
            vetoed by Governor Arnold Schwarzenegger who stated that these 
            types of laws have caused much confusion for employers and 
            employees which has resulted in needless litigation and a 
            perception that California is not friendly to business.  

            SB 300 (Kuehl) of 2005:  Held in Assembly Appropriations 
            Committee   
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            SB 300 was similar to this bill; however, SB 300 included 
            various other provisions regarding the medical certification 
            of a serious health condition, employer and employee 
            notifications under the CFRA, and other miscellaneous changes. 
            SB 300 was ultimately held in the Assembly Appropriations 
            Committee.  



                                       SUPPORT
          
          Legal Aid Society - Employment Law Center (Sponsor)
          Alzheimer's Association
          American Civil Liberties Union
          American Federation of State, County and Municipal Employees, 
          AFL-CIO
          Asian Communities for Reproductive Justice
          California Alliance for Retired Americans
          California Black Health Network
          California Commission on Aging
          California Conference Board-Amalgamated Transit Union
          California Conference of Machinists
          California Employment Lawyers Association
          California Labor Federation
          California Nurses Association/National Nurses Organizing 
          Committee
          California Rural Legal Assistance Foundation
          California School Employees Association
          California Teachers Association
          California Teamsters Public Affairs Council
          California Women's Law Center
          Central Valley Susan G. Komen for the Cure
          Communication Workers of America, Local 9003
          Communications Workers of America, Local 9588
          Disability Rights Education & Defense Fund
          Disability Rights Legal Center
          Engineers and Scientists of California, IFPTE Local 21
          Equal Rights Advocates
          Family Caregiver Alliance
          Glendale City Employees Association
          Health Access California
          Inland Empire Susan G. Komen for the Cure
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          International Longshore and Warehouse Union
          Labor Project for Working Families
          Laborers', Locals 777 & 792
          Legal Aid Society-Employment Law Center
          Los Angeles Alliance for a New Economy (LAANE)
          Los Angeles Caregiver Resource Center
          Los Angeles County Susan G. Komen for the Cure
          National Association of Social Workers, California Chapter
          National Association of Working Women
          National Council of La Raza
          National Nurses Organizing Committee
          Orange County Susan G. Komen for the Cure
          Organization of SMUD Employees
          Parent Voices
          Professional and Technical Engineers, IFPTE Local 21
          Restaurant Opportunities Center of Los Angeles
          Sacramento Valley Susan G. Komen for the Cure
          San Bernardino Public Employees Association
          San Diego Susan G. Komen for the Cure
          San Francisco Susan G. Komen for the Cure
          San Luis Obispo County Employees Association
          Santa Rosa City Employees Association
          UNITE HERE
          United Food and Commercial Workers Western States Council
          Utility Workers Union Local 132
          9 to 5 California, National Association of Working Women
          

                                     OPPOSITION
          
          Associated Builders and Contractors of California
          Associated General Contractors
          Association of California Water Agencies
          California Association of Bed & Breakfast Inns
          California Association of Health Facilities
          California Bankers Association 
          California Chamber of Commerce
          California Chapter of American Fence Association
          California Farm Bureau Federation 
          California Fence Contractors' Association
          California Grocers Association 
          California Hotel and Lodging Association 
          Hearing Date:  June 27, 2012                             AB 2039  
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          California Independent Grocers Association 
          California League of Food Processors
          California Manufacturers & Technology Association 
          California Restaurant Association 
          California Retailers Association 
          City of Palm Desert
          Engineering Contractors' Association
          Flasher Barricade Association
          Marin Builders Association
          National Federation of Independent Business
          Orange County Business Council
          Simi Valley Chamber of Commerce
          Southwest Riverside County Legislative Council




























          Hearing Date:  June 27, 2012                             AB 2039  
          Consultant: Alma Perez                                   Page 10

          Senate Committee on Labor and Industrial Relations