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San Francisco: Supplemental Pay Required for Certain Employees Receiving Paid Family Leave

May 10, 2016

HR360, Inc.
May 6, 2016

Ordinance Applies to Employees Receiving State Paid Family Leave for Bonding with a New Child

A new ordinance in San Francisco, which becomes operative on January 1, 2017, requires covered employers to provide supplemental compensation to employees who are receiving state Paid Family Leave for purposes of bonding with a new child.

Background
California Paid Family Leave (PFL) provides benefits to individuals who need to take time off work to care for a seriously ill child, parent, parent-in-law, grandparent, grandchild, sibling, spouse, or registered domestic partner, or to bond with a new child or a child in connection with adoption or foster care placement.

New Ordinance

  • Supplemental Pay. Generally, when a covered employee receives California Paid Family Leave compensation for the purpose of new child bonding, a covered employer must, during the leave period, supplement the California Paid Family Leave weekly benefit amount that the employee is receiving by paying the employee supplemental compensation in an amount such that the total of the California Paid Family Leave compensation the employee is receiving and the supplemental compensation provides (but does not exceed) 100% of the employee's current normal gross weekly wage.
    • A "covered employer" means any person as defined by state law (including corporate officers or executives) who directly or indirectly or through an agent or any other person—including through the services of a temporary services or staffing agency or similar entity—employs or exercises control over the wages, hours, or working conditions of an employee and who regularly employs the following number of employees, regardless of location:
      • Commencing with January 1, 2017, 50 or more employees;
      • Commencing with July 1, 2017, 35 or more employees; and
      • Commencing with January 1, 2018, 20 or more employees.
  • Notice. Covered employers must post a notice informing employees of their rights in a conspicuous place at any workplace or job site where any covered employee works. The notice must be posted in English, Spanish, Chinese, and any language spoken by at least 5% of the employees at the workplace or job site.
  • Recordkeeping. Covered employers must retain records documenting supplemental compensation paid to employees for a period of 3 years.

The ordinance also contains provisions regarding (among other things) termination during or prior to leave, unused vacation, and existing paid parental leave policies. Click here to read the ordinance.

To review other laws specific to California, visit the State Laws section, click on California, and choose your topic of interest from the left-hand navigation menu.

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