Understanding the California Family Rights Act Bill: What Employers Need to Know

California has significantly expanded employee family and medical leave rights with the introduction of Senate Bill 1383 (SB 1383). Signed into law by Governor Gavin Newsom on September 17, 2020, and effective January 1, 2021, this new legislation, known as the California Family Rights Act Bill, extends crucial protections to employees of smaller businesses and broadens the scope of family members for whom leave can be taken. This article breaks down the key changes employers need to understand to ensure compliance.

Expanded Reach to Smaller Employers

Previously, the California Family Rights Act (CFRA) and the New Parent Leave Act (NPLA) excluded smaller employers from mandatory family and medical leave obligations. Under the old CFRA, employers with fewer than 50 employees within a 75-mile radius were exempt. Similarly, the NPLA, concerning baby bonding leave, did not apply to employers with less than 20 employees within the same radius.

SB 1383 marks a significant shift by repealing both CFRA and NPLA and drastically reducing the employer size threshold. Now, businesses with five or more employees are required to provide eligible employees with up to 12 workweeks of unpaid, job-protected leave within a 12-month period for qualifying reasons. Crucially, employers must also maintain and pay for the employee’s group health plan coverage during the leave, as if the employee were still actively working. This expansion ensures that a larger segment of the California workforce can access essential family and medical leave benefits.

Broadened Definition of Family and Qualifying Reasons for Leave

The California Family Rights Act bill not only expands employer eligibility but also broadens the definition of family members and the reasons for which an employee can take leave. Under SB 1383, eligible employees can take leave for:

  • Bonding with a new child: This remains a core provision, allowing parents to bond with a newborn, adopted, or foster child.
  • Caring for themselves: Leave can be taken for the employee’s own serious health condition.
  • Caring for a family member with a serious health condition. The definition of “family member” has been significantly expanded to include:
    • Child (biological, adopted, foster child, stepchild, legal ward, or child of a domestic partner)
    • Parent (biological, adoptive, step or foster parent, or legal guardian)
    • Grandparent
    • Grandchild
    • Sibling
    • Spouse
    • Domestic partner

Previously, under the CFRA, leave to care for a family member was limited to a child, parent, spouse, or domestic partner. The inclusion of grandparents, grandchildren, and siblings significantly broadens the support employees can provide to their families under the California Family Rights Act bill.

Furthermore, SB 1383 addresses leave for parents working for the same employer. Unlike the previous law, which capped combined leave for both parents at 12 weeks, the new law mandates that each parent is entitled to up to 12 weeks of leave, even if they work for the same company.

Another significant addition is the provision for leave due to a qualifying exigency related to the covered active duty or call to covered active duty of an employee’s spouse, domestic partner, child, or parent in the Armed Forces of the United States. This recognizes the needs of families with members in the military.

Finally, the California Family Rights Act bill removes the “key employee” exception that previously allowed employers to deny reinstatement to certain highly compensated employees under specific circumstances within the CFRA. This ensures greater job protection for all employees taking leave.

Employee Eligibility Requirements

Despite these expansions, the fundamental eligibility requirements for employees to qualify for family and medical leave under the California Family Rights Act bill remain in place. Employees must still meet the following criteria:

  • 12 months of service with the employer.
  • 1,250 hours worked for the employer in the 12-month period prior to the leave.

Conclusion

The California Family Rights Act bill represents a major expansion of family and medical leave rights in California. By extending coverage to employees of smaller businesses and broadening the definition of family and qualifying reasons for leave, SB 1383 provides greater security and support for California workers. Employers must understand these changes and update their policies and practices to ensure compliance with the new law. For detailed guidance and to ensure your business is fully compliant, it is advisable to consult with legal counsel specializing in California employment law.

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