Paid Family Leave

1
Paid Family Leave

• Presented by
• Traci Holt, Sr. HR Consultant
• Holly Schirmer, HR Consultant,
• Alliance for Workforce Development, Inc.

2
Overview of the Program

• In 2002, legislation was enacted to extend
  disability compensation to cover individuals who
• Take time off work to care for a serious ill
  child, spouse, parent, or domestic partner, or
• To bond with a new child.
• Administered by the Employment Development
  Department (EDD).
• An estimated 13 million California workers who
  are covered by the SDI program will also be
  covered by Paid Family Leave Insurance Program.
• Funded by employee contributions, which started
  January 1, 2004.
• Paid Family Leave Program is effective July 1,
  2004.

3
Key Points

• Employees are eligible regardless of company
  size.
• Paid Family Leave does not expand or change
  existing job protection rights for employees.
• Payments are capped at 6 weeks over a 12 month
  period.
• Employees are eligible without regard to length
  of time with current employer.

• Benefits are at the same rate as SDI benefits.
• Employees cannot receive Paid Family Leave
  benefits if receiving workers compensation,
  unemployment insurance, or State Disability.
• One-week waiting period.

4
Key Points

• Program applies to most California employers
  regardless of the size of their workforce.
• Program does not provide job protection or return
  rights.
• Job protection or return rights may apply to you
  if you are subject to federal Family Medical
  Leave Act, California Pregnancy Leave or the
  California Family Rights Act.

• Provide new employees with a brochure.
• Post the new poster describing the program.
• Must notify employer of reason for taking leave
  in a manner consistent with your companys leave
  policy.

5
Paid Family Leave Claim Types

• Care
• Includes care for seriously ill spouse, domestic
  partner, parent or child.
• Requires doctor certification of serious illness
  and need for care.
• Requires signature of person receiving care or
  his/her authorized representative.

6
Paid Family Leave Claim Types

• Bonding
• Requires written proof of a new child such as a
  birth certificate or adoption papers.
• Includes adopted, foster or newborn child.
• Must be claimed within 12 months of entry into
  family.
• Child must be a minor child under the age of 18.

7
How much does it cost?

• An additional .08 percent was added to the SDI
  contribution rate for two years (2004-2005).
• Estimated average annual cost per employee is
  25.00.
• No employer contribution, 100 employee funded.
• Deductions began January 1, 2004.

8
Paid Family Leave vs. State Disability

• 6 weeks per 12 month period.
• Benefits are to care for a seriously ill family
  member or to bond with a new child.
• May require employees to use up to two weeks of
  their unused vacation.
• Vacation pay conflicts with benefits if employer
  requires employee to use vacation time.

• 52 weeks per claim.
• Benefits are for employees own illness, injury
  or disability.
• Not required to use vacation.
• Vacation pay is not in conflict with SDI.

9
Medical Providers Role

• Determine if your patients physical or mental
  health condition requires support from a family
  member.
• You and your patients care provider must certify
  via signatures to the accuracy of the claim
  information provided.
• Certification is not necessary for bonding with a
  new child.

10
Authorized Medical Professionals

• Licensed medical or osteopathic
  physician/surgeon.
• Authorized medical office of a U.S. government
  facility.
• Chiropractor
• Podiatrist
• Optometrist
• Dentist
• Designated Psychologist
• Religious Practitioner

11
What You Should Do

• Provide employees with pamphlets when they become
  disabled or are absent for a reason that would
  qualify for SDI/PFL benefits.
• Make sure your employee handbook includes any
  requirements for the use of vacation, sick pay or
  PTO during an absence.
• Consult with legal counsel before taking
  disciplinary action or terminating anyone on any
  protected leave or taking a mandated benefit.

• Deduct SDI and PFL taxes from employees wages
  according to the rates set by EDD.
• Make appropriate payments and file reports with
  EDD.
• Post Notice to Employees in the workplace.
• Provide new hires with pamphlets on State
  Disability and Paid Family Leave.

12
Questions

• For more information, you can contact
• 1-877-BE-THERE.
• or
• Contact the HR Solutions team
• Traci Holt, 257-5294
• Holly Schirmer, 257-2586