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California Client News
   Posted May 18, 2008                                                                                     JLZ Business Services
 
 California's Paid Family Leave Insurance Program
Frequently asked questions

Q. What is Paid Family Leave?

A. Paid Family Leave is unemployment compensation disability insurance paid to workers who suffer a wage loss when they take time off work to care for a seriously ill family member or bond with a new child.


Q. How long may a person receive Paid Family Leave insurance benefits?

A. Workers may receive up to six (6) weeks of benefits that may be paid over a 12-month period.


Q. What is the relationship of Paid Family Leave Insurance to State Disability Insurance?

A. Paid Family Leave Insurance is a component of the State Disability Insurance (SDI) program. The SDI benefit portion compensates workers who suffer a wage loss when they can't work because of their own illness or injury. The Paid Family Leave benefit compensates workers who suffer a wage loss due to the need to provide care for a seriously ill family member or to bond with a new child.


Q. Are payroll deductions mandatory?

A. Yes, beginning January 1, 2004, employers are required to deduct the Paid Family Leave contributions from the wages of employees who are covered by the SDI program.


Q.Who pays?

A. The Paid Family Leave insurance program is fully funded by employees' contributions, similar to the SDI program.      


Q. When does the Paid Family Leave insurance program begin?

A. Benefits will be payable for Paid Family Leave insurance claims commencing on or after July 1, 2004.


Q. Will the moratorium on new regulations delay the implementation of Paid Family Leave benefits?

A. No. Paid Family Leave benefits will be paid to eligible claimants starting July 1, 2004, as specified in the statute. The regulations clarify the statutory provisions, but cannot change the rights or responsibilities specified in the statute. The processing of all pending regulations are suspended pending a review that will reassess their impact on business. This applies to all pending regulations, including the pending Paid Family Leave regulations. After the required review, the processing of the regulations is expected to continue with another public comment period.


Q. How does the passage of the Paid Family Leave clean-up bill (SB 727) affect the regulations for the Paid Family Leave program?

A. The EDD plans to incorporate the regulatory changes necessary due to the enactment of SB 727 in the current regulatory proceeding. SB 727, for example, eliminated the waiting period for Paid Family Leave benefits for women who serve a waiting period before collecting DI benefits for pregnancy and then elect to bond with their new child using Paid Family Leave benefits. Comments on these changes, as well as on EDD's responses to comments received to the initial proposed regulations, will be sought during the next public comment period on the regulations.


Q. What constitutes a serious health condition for the purposes of Paid Family Leave?

A. A serious health condition means an illness, injury, impairment, or physical or mental condition of a patient that involves inpatient care in a hospital, hospice, or residential medical care facility. This includes any period of incapacity (e.g., inability to work, attend school, or perform other regular daily activities) or any subsequent treatment in connection with such inpatient care; or continuing treatment by a physician or practitioner Unless complications arise, cosmetic treatments, the common cold, influenza, earaches, upset stomach, minor ulcers, and headaches other than migraine, are examples of conditions that do not meet the definition of a serious health condition for purposes of Paid Family Leave.


Q. Does the seven (7) day waiting period for Paid Family Leave need to be seven consecutive days?

A. No. The required seven-day waiting period does not need to be taken seven days in a row. For example, if care were provided one day per week, the seven-day waiting period would be served over a seven-week period. Benefits are payable once the seven days have been served and all other eligibility criteria are met.


Q. Are there specific timeframes for submitting a claim to provide care for a child, parent, spouse, or registered domestic partner or bond with a new child?

A. You must complete and mail a claim form no later than 42 days from the first day for which you may be paid due to the need to provide care or bond. If your claim is late you may lose benefits.


Q. When must I submit a claim to bond with a new minor child in order to receive six weeks of benefits?

A. Eligibility for up to six weeks of benefits to bond with a new minor child expires at the end of the 12-month period that begins on the minor child's date of birth, adoption, or foster care placement. Therefore, you must complete your bonding prior to the 12-month period ending date and submit your claim timely.