SACRAMENTO, CA, April 15, 2016 -- Governor Jerry Brown last week signed a bill by Assembly Member Jimmy Gomez greatly expanding California’s family leave program to include a wider range of employees and offer better benefits. This expansion builds upon the family leave program that was instituted in California 15 years ago that allows for workers to take time off from work to care for their child or an ill family member.
The new benefits that have been signed into law will be extended to lower-income workers than previously and offer them a higher percentage of their income during their time off from work. Previously, workers were offered 55% of their wages for up to six weeks. The expanded benefits will offer those at a lower income bracket 70% of their wages, while workers who earn up to $108,000 will be eligible for 60% of their salary, and will go into effect in 2018. The six week cap is still in place, a compromise that was necessary to gain approval from Governor Brown.
The program is currently paid for by contributions from workers in the state, but the increase in the program’s benefits will cost the state around $587 million a year by the year 2021 and will require an increase in contributions to cover the cost. The state’s Employment Development Department, which runs the program, has stated that so far 2 million claims have been paid to workers, while approximately 13.1 million workers are currently eligible. Supporters hope that the increase in benefits will encourage participation, and allow for Californians to spend time with their newly born children and ailing family members.
The bill comes as part of a larger trend calling for businesses to give their workers both higher pay and more benefits in terms of time off from work. The family leave measure was signed just a week after the Governor signed a mandate to increase the state’s minimum wage to $15 an hour over the next several years despite the concerns expressed by many the business community about the burden that would be placed on employers. Family leave has also been expanding as well, with New York requiring businesses to provide 12 weeks of paid time off and San Francisco mandating that employers give new parents six weeks of fully paid time off.