The Family and Medical Leave Act (FMLA) provides eligible employees with 12 weeks of job-protected leave, but federal law does not require this leave to be paid–effectively leaving the decision in the hands of covered employers. In the absence of paid family or sick leave provisions in federal law, a growing number of states, including California, New York, Washington, and Arizona have begun to fill the gap. Follow the Zenefits blog as we discuss major developments in the 2017 leave landscape, and how Zenefits can help you comply with the new regulations in your state or city!
As of July 1, 2017, a new group of San Francisco employers, with 35 or more employees, will have to comply with San Francisco’s Paid Parental Leave Ordinance (“PPLO”), in addition to the larger employers already bound by the Ordinance. Passed in 2016, the SF-PPLO requires covered employers to provide supplemental compensation to employees receiving wage replacement benefits under California Paid Family Leave (PFL), ensuring that a combination of the PFL wage replacement and employer compensation equal 100% of the employee’s gross weekly wages. The supplemental compensation must be paid at the same time the employee receives their Paid Family Leave Benefit, for up to 6 weeks within any 12 month period.
Timing: The Paid Parental Leave Ordinance phases-in progressively smaller employers over 2017-18, in the following order:
Employees must receive supplemental compensation under SF PPLO if:
The wage replacement percentage covered by California Paid Family Leave is scheduled to increase in 2018 to 60 or 70% in 2018, depending on income. SF-PPLO will be adjusted accordingly.
In addition to supplemental compensation, covered SF employers must also provide their employees with the following:
Worried about navigating these complicated changes for your business? That’s where Zenefits comes in. Our team gets you set up with the tools you need to comply with new family and sick leave laws, all of which integrate seamlessly with your HR processes. Visit our Help Center for further details on coverage, notice, and paid time off requirements.