Paid Family Leave Hits California

California
Gov. Gray Davis signed into law a paid family-leave bill that will allow workers to depart from their jobs for up to six weeks to care for a newborn, newly adopted child or sick family member. The program is an extension of the federal Family and Medical Leave Act enacted by the Clinton administration.

The bill had the support of the California Labor Federation and was authored by state Sen. Sheila Kuehl (D). AFSCME political activists played a crucial role in supporting it by writing letters to legislators and testifying before the public policy committee. Thirty-two AFSCME members were on stage with Davis at the signing ceremony.

The landmark legislation makes California the first state to offer this benefit. The law, which doesn't yet cover public employees, permits workers to take leave at 55 percent of their pay. The weekly amount, capped at $728, is tax-free.

Workers will pay for the program through an increase in their contributions to the state's temporary disability-insurance program. The average increase is $27 a year starting Jan. 1, 2004 — the date the law goes into effect — but could go as high as $70 for workers making more than $72,000 annually. Employees can start collecting paid-family-leave benefits in July 2004.

Businesses with fewer than 50 workers aren't required to hold a job for an employee who goes on paid family leave. Supporters now plan to push to expand the law to public employees. They also hope that more states will be inspired by California's initiative, and there is an ample opportunity to expand: 27 other states have introduced similar legislation.