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California Expands Leave Benefits in 2025

Summary: California Governor Gavin Newsom signed legislation in September 2024 expanding paid family leave and other leave benefits for employees working in California, starting on January 1, 2025, including:

Read on for more information.

CA Paid Family Leave (PFL) Expansion

On September 29, 2024, Governor Newsom signed Assembly Bill or AB 2123, which will prohibit employers from requiring employees to take up to two weeks of their earned, unused vacation leave prior to receiving California paid family leave (CA PFL) benefits.

In the meantime, the current law permitting employers to require employees to take up to two weeks of their earned, unused vacation leave prior to receiving CA PFL benefits remains in effect.

This change takes effect on January 1, 2025 and employees will be able to receive their CA PFL benefits sooner than under the current law.

Employers are still permitted to allow employees to supplement or “top off” their CA PFL benefits with vacation leave to receive up to 100% (but not more) of their normal weekly pay.

CA PFL Background
The CA PFL program allows California employees to receive income replacement benefits for up to eight weeks for the following purposes:

  1. bonding with a new child entering the family through birth, adoption, or foster care placement
  2. caring for a seriously ill family member (family member here means an employee’s child, parent, parent-in-law, grandparent, grandchild, sibling, spouse, or registered domestic partner), or
  3. participating in a qualifying event because of a family member’s military deployment to a foreign country (family member here means an employee’s spouse, registered domestic partner, parent, or child).

CA PFL benefits are funded through mandatory employee payroll contributions.

CA PFL Revised Time Limit for Claims Administration

Employers should also be aware of another bill (Senate Bill or SB 1090) signed by Governor Newsom on September 28, 2024, revising the time limit for claim filing and payment of CA PFL and state disability insurance (collectively referred to as California state disability insurance or “CA SDI”).

This new bill permits employees to file a claim for CA SDI up to 30 days in advance of the first compensable day, but no later than the 41st consecutive day following the first compensable day. Currently, employees must file CA SDI claims by the 41st consecutive compensable day.

Additionally, the bill requires CA SDI benefits to be paid to the claimant by the later of 14 days or the first date of eligibility. Current law requires the state agency administering CA SDI benefits (Employment Development Department) to issue payments within 14 days of the employee’s properly completed first disability claim.

These changes will become operative when incorporated in the Employment Development Department’s integrated claims management system.

These CA SDI changes under SB 10190 will not likely impact employers directly. Nonetheless, broad knowledge of these changes is key as employers might receive questions from employees regarding CA SDI claim filing and payment rules.

Reminder: CA SDI Changes in 2024 & 2025

As we previously reported here, new formulas used to determine CA SDI benefits will increase income replacement rates to 70% - 90%, based on the individual’s wages earned, beginning January 1, 2025. Lower-wage employees will receive a higher percentage in compensation. Employees earning no more than 70% of the state average weekly wage will be eligible for up to 90% of their wages.

These benefit increases for 2025 are funded by the elimination of the taxable wage limit, which became effective on January 1, 2024. This change for 2024 resulted in all taxable wages being subject to the CA SDI tax and impacted high-wage workers, who generally have experienced an increase in their SDI employee contributions.

CA Victims of Violence Leave Expanded

Overview: On September 29, 2024, Governor Newsom signed Assembly Bill or AB 2499, refashioning and expanding California’s current workplace protections and paid sick and safe leave law (CA PSSL) for employees or their family members who are victims of violence. Since AB 2499 is nuanced and complex, the information below is a brief summary of the law’s highlights for employers to know.

Current California laws require employers to provide an employee who is a victim of domestic violence, sexual assault, or stalking with CA PSSL time and other workplace protections such as antidiscrimination, antiretaliation, and reasonable accommodation requirements.

AB 2499 expands current law to include requiring time off not only for employees, but also for employees whose family member is a victim of a “qualifying act of violence.”

Important Clarifications under AB 2499

Family Member is defined as an employee’s child, parent, parent-in-law, grandparent, grandchild, sibling, spouse, domestic partner, or “designated person.” “Designated person” means any individual related by blood or whose association with the employee is the equivalent of a family relationship.

“Qualifying act of violence” is defined as the following, regardless of whether anyone is arrested for, prosecuted for, or convicted of committing any crime:

  • Domestic violence.
  • Sexual assault.
  • Stalking.
  • An act, conduct, or pattern of conduct that includes any of the following:
    1. In which an individual causes bodily injury or death to another individual.
    2. In which an individual exhibits, draws, brandishes, or uses a firearm, or other dangerous weapon, with respect to another individual.
    3. In which an individual uses, or makes a reasonably perceived or actual threat to use, force against another individual to cause physical injury or death.

Reasonable accommodations for purposes of an employee who is a victim (or their family member) of a “qualifying act of violence” may include the implementation of safety measures, including:

  • a transfer, reassignment,
  • modified schedule,
  • changed work telephone,
  • permission to carry telephone at work,
  • changed workstation,
  • installed lock,
  • assistance in documenting domestic violence, sexual assault, stalking, or another qualifying act of violence that occurs in the workplace,
  • an implemented safety procedure, or
  • another adjustment to a job structure, workplace facility, or work requirement.

Under AB 2499, employers with 25 or more employees are prohibited from terminating, discriminating, and/or retaliating against employees who take CA PSSL for the following purposes in connection with a “qualifying act of violence” for themselves or for their family member:

  • Seeking or obtaining medical attention and/or mental health counseling to recover from injuries;
  • Seeking or obtaining services from a domestic violence shelter, rape crisis center, or other victim services organization;
  • Seeking or obtaining legal services as well as legal relief such as a restraining order;
  • Relocating or securing a new residence, including enrolling children in a new school or childcare;
  • Preparing for, participating in, or attending any civil, administrative, or criminal legal proceeding; and
  • Seeking, obtaining, or providing childcare or care to a care-dependent adult if such care is necessary to ensure their safety.

Total Leave Limits: Employers with 25 or more employees may limit the total leave taken by an employee under AB 2499 to:

  • Twelve (12) weeks of total leave for employees who are victims of a qualifying act of violence;
  • Ten (10) days of total leave when an employee’s family member was the victim of a qualifying act of violence; and
  • Five (5) days of total leave for relocation or new school childcare facility enrollment purposes when the employee’s family member was the victim of a qualifying act of violence.

Enforcement: The California Labor Code currently provides unpaid leave rights and protections for victims of domestic violence, sexual assault, stalking, or other crimes and for individuals performing jury duty or serving as a witness. Under the AB 2499, such rights and protections will transfer to the California Fair Employment and Housing Act (FEHA) and enforcement authority will rest with the California Department of Civil Rights.

Notice: Employers must also inform employees in writing of their rights under AB 2499 upon the following events:

  • Date of hire,
  • Annually,
  • Employee’s request, and
  • Any time an employee informs an employer that the employee or the employee’s family member is a victim.

The California Department of Civil Rights will develop a model notice for employers to comply with this notice requirement on or before July 1, 2025.

CA Paid Sick Leave Expanded for Agricultural Workers

On September 24, 2024, Governor Newsom signed Senate Bill or SB 1105, expanding CA PSSL for agricultural workers who work outside. These agricultural workers will be entitled to CA PSSL time to avoid smoke, heat, and flooding conditions created by a local or state emergency, including when the agricultural worker’s worksite is closed due to smoke, heat, or flooding conditions.

Effective Date

These changes to CA PSSL outlined above become effective on January 1, 2025.

CA Leave Reminders

CA PSSL Expansion: Click here for a prior Risk Strategies article providing a refresher on CA PSSL and detailing the expansion of CA PSSL time in 2024.

Reproductive Loss Leave: Click here for a prior Risk Strategies article outlining the requirement for California employers to provide leave for reproductive-related losses in 2024.

Employer Next Steps

Employers with California employees should take note of the January 1, 2025 effective date of these CA PFL and other leave-related updates.

Employers are advised to take the following steps:

  1. Consult with employment and labor counsel to update their existing employee leave policies, handbooks, and practices accordingly.
  2. Clearly communicate employees’ rights and protections under these new laws to their workforce in California.
  3. Train managers and supervisors on these upcoming leave-related changes.
  4. Monitor the CA Department of Civil Rights employer-required postings webpage here for additional resources, including the required leave rights for victims of violence model notice, anticipated to be published on or before July 1, 2025.

Risk Strategies continues to closely follow state leave developments and provide updates when available. Contact us directly with any questions at benefits@risk-strategies.com.