I may be jumping the gun a little on this one, but yesterday, the city council of San Francisco UNANIMOUSLY voted that employers with over 20 employees will be required to allow family leave AT FULL PAY for 6 weeks!!
California already has California Paid Family Leave Act in place. It is run through the EDD and is similar to State Disability Insurance. It is paid for through payroll deductions and the employee receives about 55% of their normal pay while they are “bonding” with the new baby. Now, San Francisco wants every employer to make up the 45% difference so that the employee is receiving 100% of their normal pay. They do not say where this mystery money is supposed to come from, but you can imagine higher costs for everything, again, and another reason NOT to go to San Francisco.
I bring this new law up now because as we are painfully aware, all of our State Leaders come from San Francisco with a couple from Los Angeles. So, every time San Francisco does something like this, it ends up in Sacramento a few months later. So don’t be surprised when we are discussing this on a State level within the year.
So let’s review…..
We are raising payroll by 50%, then requiring that you give people at least 3 free days a year called sick pay, then we mandate that you provide health insurance and now you have to pay someone 45% of their normal wages for 6 weeks of non- productive work time. And economists will tell you this will have no effect on business…..which shows the quality of education in California universities. But that is for another day.
On Monday, Governor Brown signed a new addendum that increases the payout to people on Paid Family leave to 60%. This benefit could, in the future also create a new classification of worker. Under a new definition, if an employee is earning below the poverty line they could fall into this new classification and be eligible for increased State funding for a variety of payouts. This could mean that they would receive 70% of normal pay while other employee would only receive 60% for the same Paid Family Leave. This could be extended to Unemployment Benefits, State Disability Pay and even employer covered expenses such as temporary disability under worker’s compensation benefits. The costs to tax payers and employers just keep surging with no end in sight.