California to Amend the Paid Family Leave Program

What happened?

On September 3, 2024, the California Legislature presented to the governor Bill AB 2123, which would amend the Paid Family Leave (PFL) program in California. It is waiting for the governor’s signature.

Quick Summary:

The bill amends the Unemployment Insurance Code to stop employers from requiring employees to use vacation time before receiving paid family leave (PFL) benefits.

What are the details?

• The bill aims to eliminate the employer’s ability to require an employee to use up to two weeks of earned and unused vacation before the employee can begin receiving paid family leave (PFL) benefits within any 12 months of eligibility.
  • This change means that, from the specified date, employers will no longer be able to mandate the use of vacation time before the disbursement of PFL benefits.

• The bill would amend Section 3303.1 of the Unemployment Insurance Code.

Business Considerations

• Employers should update their Paid Family Leave policies to comply with the new requirements if they become law.
• Employers should train their HR personnel and implement systems to track and provide accurate leave.

Source References

• CA AB 2123
• Papan Legislation to Remove Unfair Barriers to Paid Family Leave Benefits Approved by the State Legislature
• Legislative Update: Legislature Hikes the Ball For Signing Kickoff (Seyfarth Shaw LLP.)

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