Finally get that promotion? Get exclusive content, tips and tools to help you excel.
Shawn Premer shows how doing the right thing for employees leads to positive business results.
Is your employee handbook keeping up with the changing world of work? With SHRM's Employee Handbook Builder get peace of mind that your handbook is up-to-date.
Build competencies, establish credibility and advance your career—while earning PDCs—at SHRM Seminars in 12 cities across the U.S. this spring.
#SHRM18 will expand your perspective – on your organization, on your career, and on the way you approach HR. Join us in Chicago June 17-20, 2018
On April 11, 2016, California
Governor Jerry Brown signed legislation that will increase the wage replacement rate under the Paid Family Leave program for California workers from its current level of 55 percent to 60 or 70 percent (depending on the worker’s income).
Assembly Bill No. 908 (AB 908) will revise the formula used to determine benefits available to workers pursuant to the state unemployment compensation disability law and the family temporary disability insurance program. As of 2018, the bill will also eliminate the seven-day waiting period for receiving temporary disability benefits.
Currently, California unemployment compensation disability law provides a formula for determining benefits available to disabled workers. According to the law, the weekly benefit for an individual who has quarterly base wages of greater than $1,749.20 is calculated by multiplying his or her base wages by 55 percent and dividing the result by 13. (California bases disability payments on a worker’s highest-earning quarter during a roughly one-year “base period.”)
Once the governor signs the bill, workers experiencing periods of disability commencing after Jan. 1, 2018, but before Jan. 1, 2022, will be entitled to the following weekly benefit amounts:
--23.3 percent of the state average weekly wage; or
--60 percent of the worker’s wages during the highest quarter divided by 13.
The increased wage replacement rate will not exceed the maximum workers’ compensation temporary disability indemnity weekly benefit amount established by the Department of Industrial Relations pursuant to existing law.
Commenting on the new law, Governor Brown stated, “Families should be able to afford time off to take care of a new child or a member of their family who becomes ill.” AB 908 comes just one week after
Governor Brown signed a bill raising the state’s minimum wage to $15.00 per hour by 2022.
Hera S. Arsen, J.D., Ph.D., is managing editor of the Ogletree Deakin’s publications. © 2016 Ogletree Deakins. Reprinted with permission. All rights reserved.
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Please sign in as a SHRM member before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
Join SHRM's exclusive peer-to-peer social network
SHRM’s HR Vendor Directory contains over 3,200 companies