BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1562
                                                                  Page  1

          Date of Hearing:   April 9, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    AB 1562 (Gomez) - As Amended:  April 1, 2014 

          Policy Committee:                              LaborVote:5-1

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill expands eligibility for unpaid family and medical  
          leave to public and private school employees. Specifically, this  
          bill:

          1)Defines an "eligible employee", for purposes of receiving  
            unpaid family and medical leave, as an employee with more than  
            12 months of service with the employer who complies with one  
            of the following:

             a)   Has at least 1,250 hours of service with the employer  
               during the previous 12-month period.

             b)   Is a public or private school employee who has served,  
               during the previous 12-month period, at least 60 % of the  
               hours of service that an employee who is employed full time  
               is required to perform in a school year.

          2)Exempts public and private school employees from existing law  
            that allows an employer to refuse to reinstate an employee  
            returning from leave.

           FISCAL EFFECT

           1)Unknown but potentially significant P98/GF costs to school  
            districts and county offices of education (COEs) assuming  
            several thousand school personnel receive expanded leave  
            rights.

          2)One-time minor, absorbable GF costs to the Department of Fair  
            Employment and Housing to distribute revised materials to  
            employers regarding expanded leave rights.








                                                                  AB 1562
                                                                  Page  2


            According to 2011-12 data, there were nearly 284,000 teachers  
            and over 288,000 classified employees in California. The state  
            does not keep data on the number of part-time school  
            employees.  Assuming 3% of teachers qualify for the California  
            Family Rights Act (CFRA) leave under this bill, LEAs could  
            incur costs of approximately $70 million.  This does not take  
            into account the costs LEAs would also incur to maintain their  
            portion of health benefit costs during CFRA leave. 
           



          COMMENTS  

           1)Rationale.  This bill expands CFRA benefits to public and  
            private school employees who work 60 % of a full-time  
            schedule.  According to California Teachers Association, the  
            length of the school year makes it difficult for school  
            employees to meet the specific 1,250 hour requirement of CFRA.  
             This bill would allow an employee to qualify for CFRA leave  
            if they meet the hour requirement in current law or work 60 %  
            of a full time schedule.

           2)Background .  The California Family Rights Act (CFRA) provides  
            employees up to 12 weeks of unpaid family and medical leave if  
            the employee worked for the employer for at least 12 months  
            and worked 1,250 hours during this period.  The 1,250 hour  
            threshold under the CFRA generally represents 60 % of a  
            full-time schedule of an employee who works 40 hours-per-week  
            for 12 months.  


            Schools generally provide anywhere from 175 to 185 days of  
            instruction each year (In 2009, in response to budget cuts,  
            school districts were authorized to provide 175 days of  
            instruction.)  The length of the school year makes it  
            difficult for teachers to meet the 1,250 hour requirement. For  
            example, a full time teacher who works 182 days and 7.25 hours  
            a day would work a total of 1,320 hours per year. 


            According to 2011-12 data, there were nearly 284,000 teachers  
            and over 288,000 classified employees in California. The state  
            does not track the number of part-time employees.  This bill  








                                                                  AB 1562
                                                                  Page  3

            seeks to provide CFRA leave to all full time teachers and  
            part-time school employees that meet the requirements of the  
            bill.  
           
          3)Family Medical Leave Act (FMLA) and CFRA interaction  .  The  
            federal FMLA uses the same 1,250 hour threshold to determine  
            eligibility for 12 weeks of unpaid leave.  Currently, many  
            school employees qualify for leave under FMLA pursuant to  
            regulations that allow for a "presumption of eligibility." In  
            the event that a school employer kept inaccurate records of  
            the hours worked, it is presumed that the employee has met the  
            hour requirements to qualify for FMLA.  Many school districts  
            assume full-time employees meet the hour requirements for both  
            FMLA and CFRA.  The bill primarily affects part-time  
            employees.



            For most CFRA/FMLA leave qualifying events, the two leaves run  
            concurrently, however, there are some circumstances where  
            CFRA/FMLA leaves would not run concurrently.  For example,  
            under the FMLA pregnancy is considered a serious medical  
            condition.  Pregnancy is not considered a serious medical  
            condition under CFRA.  Instead, in California, a female  
            employee is entitled to take up to 4 months of pregnancy  
            disability leave (PDL) if she is disabled by her pregnancy and  
            unable work.  A pregnant employee who takes 3 months (12  
            weeks) of PDL exhausts her FMLA leave.  However she still  
            would have up to 12 weeks of CFRA leave to take after her PDL  
            for baby bonding.  Employers are also required to maintain  
            their portion of health benefit costs during all leave related  
            to FMLA/PDL/CFRA.  



           Analysis Prepared by  :    Misty Feusahrens / APPR. / (916)  
          319-2081