What’s Changing?
Currently, employers in California can require employees to use two weeks of accrued vacation time before accessing Paid Family Leave (PFL) benefits. This will no longer be allowed starting January 1, 2025. Additionally, PFL wage replacement benefits will increase to cover 70-90% of an employee’s wages, up from the previous 60-70%.

What Stays the Same?
While employers cannot mandate the use of vacation time, employees can still voluntarily use accrued vacation days before accessing PFL benefits, as vacation provides full wage replacement compared to PFL’s partial coverage.

Employer Takeaways:

• Policy Updates: Employers must review and revise policies, procedures, and handbooks to eliminate any requirement for employees to use vacation time before accessing PFL benefits.
• Communication: Ensure employees understand their options for combining accrued vacation time with PFL benefits for financial flexibility.

What’s Changing?
SB 1090 introduces measures to address delays in employees receiving benefits through the Employment Development Department (EDD):

1. Advanced Filing: Employees can begin the claim process up to 30 days before their anticipated first compensable day.
2. Payment Timelines: The EDD must issue the first benefit payment within 14 days of receiving a properly completed claim OR when eligibility for benefits begins, whichever comes later.

Implementation Timeline:
Although effective January 1, 2025, these provisions won’t take effect until incorporated into the EDD’s updated claims management system under the EDDNext modernization project.

Employer Takeaways:

• Updated Resources: Provide employees with current pamphlets and notices detailing their rights and responsibilities for accessing EDD benefits.
• Policy Adjustments: Review and revise policies that coordinate employer-provided leave programs with EDD benefits to ensure compliance with updated timelines.

These legislative changes aim to ease financial burdens for employees, ensure timely access to benefits, and provide greater flexibility for managing leave. For employers, staying compliant with these updates is crucial to supporting employees effectively while avoiding potential legal pitfalls.

Navigating legislative updates can be complex. If you’re looking for support, contact us today.

Stay proactive and set your business up for success in 2025!