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May 24, 2023

Paid Family and Medical Leave California Employers Guide

A new mother and father smile at one another, the mother holds the newborn while the father brings her flowers they have Paid Family and Medical Leave

California Paid Family Leave (PFL) Overview


California was the first state in the country to develop a Paid Family Leave program, otherwise known as the PFL for short. It was created in 2002 and became available in 2004. Since then, 11 other states have followed suit. If you're an employer operating in California (or if you live in a surrounding state), there are several important things to keep in mind.


Long-Term Impacts of the PFL Program


Research suggests that, in this context, higher benefits do tend to lead to A) longer leave duration, and B) higher earnings one year after the claim has been filed. There has also been no evidence to suggest that those organizations with employees who take PFL at a higher rate in turn have to deal with higher wage costs or high employee turnover.


How Does PFL Support Working Women?


Just because some working women want to prioritize their careers, it doesn't mean they don't have the right to start a relationship with their child if they have recently given birth. Thanks to the PFL, they are able to welcome that new child into their family without worrying about how they're going to pay for it and without losing momentum in their job while they're gone.


How Does PFL Support Caregivers?


A lot of people don't realize that caring for a seriously ill family member can quickly become a full-time job. Not only does this person likely need assistance to perform basic functions (like going to the bathroom) 24 hours a day, but they'll also have a litany of doctor's visits and other appointments to keep. Illness does not adhere to any set schedule and things can take a turn in minutes. The PFL allows caregivers to turn their full attention over to the loved one without making them choose between their family and their employment.


How Does PFL Support Fathers?

By design, the PFL supports fathers across the state in a few different ways. For starters, it gives them an invaluable opportunity to put their family first - they can spend some much-needed bonding time with their new child soon after it has entered this world, allowing them to establish a quality relationship as early as possible. It also allows them to provide daily support to care for both their child and their spouse.


Naturally, the program also supports both parties by giving them access to financial assistance that they may otherwise miss out on.

The father speaks with the doctor in the background while the mother continues to hold the baby. They have Paid Family and Medical Leave.

Paid Family Leave Checklist


To get the most out of Paid Family Leave benefits as an employer (and to help your employees do the same), be sure to complete the following items:


  • Actively encourage all employees to get an idea of how much they can receive in PFL benefit payments. This will encourage them to actively participate. They can do so on the http://edd.ca.gov website.
  • Make sure employees understand their schedule by helping them determine how much time they plan on taking, whether that time will be in increments or all at once, and other important factors.
  • Assist your employees as they develop a transition plan to support their colleagues during their leave.
  • Help your employees make sure they have all the important documents to file their PFL claim.
  • Educate the employees about what documents they'll need during this process, including their W-2 form or paystub, Proof of Relationship for bonding claims, and more.
  • Encourage your employees to file a PFL claim over the Internet using the SDI Online tool. Conversely, they can submit the form titled "Claim for Paid Family Leave (PFL) Benefits (DE 2501F) by mail if they prefer.
  • Make sure that your employees understand the ways in which they can receive these funds. Some prefer to do so via a debit card for the speed and convenience alone, for example.
  • If your employees are on intermittent leave, make sure they understand that if they do not properly return form DE 2580GF, their benefits will cease.


Employer FAQs


Is my business required to contribute to the paid family leave fund?


While it is true that all employers in the state of California must participate in the Paid Family Leave program, they do not necessarily "contribute" in the strictest sense of the term. The entirety of the program is employee-funded.


As is true in other states surrounding California, you are however responsible for withholding the proper amount for ongoing PFL contributions from each worker paycheck you issue. Most other states that offer PFL are also at least partially employee funded programs, but the employer is still responsible for the ongoing PFL contributions from each worker paycheck that is issued.  Be sure you are familiar with leave laws in all of the states that you have employees.


How are paid family leave benefits funded?


Employees are considered covered for Paid Family leave when they are unable to perform their regular duties and when they have lost wages specifically because they need to care for a family member that is ill, want to take time out to bond with a new child, or are participating in a qualified family event (like if their military spouse is getting deployed to a foreign country).


They will also need to have contributed at least $300 to California State Disability Insurance during their employment. Naturally, they also have to be considered employees with a business when their family leave period begins. So long as they can also provide all supporting documentation, they are considered covered employees.


Which employees are considered covered employees for paid family leave?


A close up of the mother and the baby. The mother is smiling because she has Paid Family and Medical Leave

Employees are considered covered for Paid Family leave when they are unable to perform their regular duties and when they have lost wages specifically because they need to care for a family member that is ill, want to take time out to bond with a new child, or are participating in a qualified family event (like if their military spouse is getting deployed to a foreign country).


They will also need to have contributed at least $300 to California State Disability Insurance during their employment. Naturally, they also have to be considered employees with a business when their family leave period begins. So long as they can also provide all supporting documentation, they are considered covered employees.

How do employers register for the PFL program?


Employers do not need to "register" for the PFL program because in California it is mandatory. Any business operating within the state needs to collect the appropriate amount of contributions from each paycheck and send them to the EDD in a timely manner.


If you'd like to find out more information about paid family and medical leave factors that you need to account for in the state of California, or if you just have any additional questions about things like business administration and benefits consulting that you'd like to go over in a bit more detail, please don't delay - contact the team at AEIS Advisors today.

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