Earlier this week, San Francisco became the first city to require private employers to provide paid parental leave to their employees. The law is the first of its kind; no other federal, state, or local law requires employers to fund time off for parents to care for a new child.
California is one of a few states that already provides some paid leave to parents taking leave after the birth or adoption of a child. However, the pay is partial and funded by employee payroll withholdings. California parents can receive 55% of their usual wages (subject to a maximum set by California law) for up to six weeks from the state.
San Francisco’s new law would require private employers in the city with 20 or more employees to make up the 45% difference in wages, so that eligible employees can collect 100% of their wages for six weeks of parental leave.
Employees must meet the following eligibility requirements to qualify for fully paid leave:
- work for a covered employer for at least 180 days
- work at least eight hours per week
- spend at least 40% of the workweek in San Francisco, and
- meet California’s eligibility requirements for paid family leave.
The law also includes an anti-retaliation provision, which prohibits employers from taking negative action against employees who exercise their right to paid leave.
The law, which San Francisco Mayor Ed Lee is expected to sign, would be phased-in starting next year. Business with 50 or more employees would need to comply by January 1, 2017, businesses with 35 to 49 employees would need to comply by July 1, 2017, and businesses with 20 to 34 employees would need to comply by January 1, 2018.