How the Paid Family Leave Law Works
Key components of the new law, from vesting to administration provisions.
Funding: Mandatory payroll deductions for the Family Temporary DisabilityInsurance program will begin January 1, 2004; benefits begin July 1, 2004.
Eligibility: About 13 million workers now paying state disability insurancewill be eligible to receive up to 55 percent of their pay for six weeks.Payments will range from $50 to $728 a week and not be taxed.
Vesting: Workers become eligible immediately upon taking a job, after aseven-day waiting period. Employers can require employees to use up to two weeksof vacation time before going on paid leave.
Coverage: Leave allowances will track the federal FMLA, providing time offfor the birth, adoption, or foster-care placement of a child, and for the careof a seriously ill child, spouse, parent, or domestic partner.
Administration: Processing claims and administering the leave program are theresponsibility of the state Employment Development Department, rather thanemployers.
Job Protection: Employees now covered by FMLA (firms employing 50 or moreworkers) receive the same job-protection guarantees they now receive with unpaidleave. Employers with fewer than 50 employees will not be required to hold jobsopen for workers on leave.
Workforce, January 2003, p. 41 -- Subscribe Now!