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As of January 1, 2025, new legislation brought important changes to California’s Paid Family Leave (PFL) and disability benefit programs. These updates aim to simplify access for employees, improve benefit payouts, and reduce administrative delays. This guide covers what AB 2123 and SB 1090 changed, how maternity and paternity leave works under California’s updated PFL framework, and what employers need to do to remain compliant.
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%.
Here is how AB 2123 changed California PFL for employers and employees:
| Before January 1, 2025 | From January 1, 2025 | |
|---|---|---|
| Wage replacement rate | 60-70% of weekly wages | 70-90% of weekly wages |
| Employer vacation mandate | Employers could require up to 2 weeks of accrued vacation first | Employers may no longer require vacation use before PFL |
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:
What’s Changing?
SB 1090 introduces measures to address delays in employees receiving benefits through the Employment Development Department (EDD):
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:
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.
Coordinating California PFL, PDL, and CFRA leave requirements can be complex, particularly when updating leave policies and employee handbooks to reflect the 2025 changes under AB 2123. LFV HR Consulting provides California HR compliance support for small and mid-size businesses. Contact us to schedule a free HR assessment.
California Paid Family Leave is one component of a broader framework of protected leave available to employees welcoming a new child. Understanding how PFL, Pregnancy Disability Leave, and job-protected leave interact is essential for employers managing maternity and paternity leave requests in 2025.
California employees may be entitled to up to 24 weeks of protected leave when combining the following programs:
| Leave Program | Duration | Who Qualifies |
|---|---|---|
| Pregnancy Disability Leave (PDL) | Up to 4 months | Employees at companies with 5+ employees, for pregnancy-related disability |
| California Family Rights Act (CFRA) | Up to 12 weeks | Employees at companies with 5+ employees, for bonding with a new child |
| California Paid Family Leave (PFL) | Up to 8 weeks | Most California employees, partial wage replacement for bonding |
Note: PDL and CFRA run separately, not concurrently. PFL runs concurrently with CFRA bonding leave in most cases. Total duration depends on individual eligibility and how programs are coordinated.
Under AB 2123, effective January 1, 2025, California PFL wage replacement for bonding leave is:
Employers can no longer require employees to exhaust accrued vacation time before accessing these benefits. Employees may still choose to use vacation voluntarily to supplement PFL partial pay.
California Paid Family Leave bonding benefits apply equally to both parents. A new father, adoptive parent, or foster parent is entitled to the same 8 weeks of PFL at the same 70-90% wage replacement rate. This applies regardless of whether the other parent is also taking leave. Paternity leave under PFL runs concurrently with any CFRA bonding leave the employee is eligible for.
How long is maternity leave in California in 2025?
California employees may have access to up to 24 weeks of protected leave by combining Pregnancy Disability Leave (up to 4 months), CFRA bonding leave (up to 12 weeks), and California PFL (up to 8 weeks of partial pay). Total eligibility depends on employer size and individual circumstances.
How much does California Paid Family Leave pay in 2025?
Under AB 2123, California PFL pays 70% of weekly wages for employees earning above the state average and 90% for those at or below it. This is an increase from the previous 60-70% rate.
Can an employer require an employee to use vacation before taking PFL in California?
No. Under AB 2123, effective January 1, 2025, employers may no longer require employees to exhaust accrued vacation time before accessing PFL benefits. Employees may still choose to use vacation voluntarily to top up their partial wage replacement.
What is the difference between California PFL and CFRA leave?
California PFL provides partial wage replacement (70-90% of wages) for up to 8 weeks through the EDD, funded by employee payroll contributions. CFRA provides job protection for up to 12 weeks at companies with 5 or more employees but does not itself include pay. In most cases these two programs run at the same time during bonding leave.
How early can an employee file a California PFL claim?
Under SB 1090, employees may begin the claim process up to 30 days before their anticipated first compensable day. The EDD is required to issue the first benefit payment within 14 days of receiving a properly completed claim.
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