California was the first state in the country to develop a Paid Family Leave program, otherwise known as the PFL for short. It was created in 2002 and became available in 2004. Since then, 11 other states have followed suit. If you're an employer operating in California (or if you live in a surrounding state), there are several important things to keep in mind.
Research suggests that, in this context, higher benefits do tend to lead to A) longer leave duration, and B) higher earnings one year after the claim has been filed. There has also been no evidence to suggest that those organizations with employees who take PFL at a higher rate in turn have to deal with higher wage costs or high employee turnover.
Just because some working women want to prioritize their careers, it doesn't mean they don't have the right to start a relationship with their child if they have recently given birth. Thanks to the PFL, they are able to welcome that new child into their family without worrying about how they're going to pay for it and without losing momentum in their job while they're gone.
A lot of people don't realize that caring for a seriously ill family member can quickly become a full-time job. Not only does this person likely need assistance to perform basic functions (like going to the bathroom) 24 hours a day, but they'll also have a litany of doctor's visits and other appointments to keep. Illness does not adhere to any set schedule and things can take a turn in minutes. The PFL allows caregivers to turn their full attention over to the loved one without making them choose between their family and their employment.
By design, the PFL supports fathers across the state in a few different ways. For starters, it gives them an invaluable opportunity to put their family first - they can spend some much-needed bonding time with their new child soon after it has entered this world, allowing them to establish a quality relationship as early as possible. It also allows them to provide daily support to care for both their child and their spouse.
Naturally, the program also supports both parties by giving them access to financial assistance that they may otherwise miss out on.
To get the most out of Paid Family Leave benefits as an employer (and to help your employees do the same), be sure to complete the following items:
While it is true that all employers in the state of California must participate in the Paid Family Leave program, they do not necessarily "contribute" in the strictest sense of the term. The entirety of the program is employee-funded.
As is true in other states surrounding California, you are however responsible for withholding the proper amount for ongoing PFL contributions from each worker paycheck you issue. Most other states that offer PFL are also at least partially employee funded programs, but the employer is still responsible for the ongoing PFL contributions from each worker paycheck that is issued. Be sure you are familiar with leave laws in all of the states that you have employees.
Employees are considered covered for Paid Family leave when they are unable to perform their regular duties and when they have lost wages specifically because they need to care for a family member that is ill, want to take time out to bond with a new child, or are participating in a qualified family event (like if their military spouse is getting deployed to a foreign country).
They will also need to have contributed at least $300 to California State Disability Insurance during their employment. Naturally, they also have to be considered employees with a business when their family leave period begins. So long as they can also provide all supporting documentation, they are considered covered employees.
Employees are considered covered for Paid Family leave when they are unable to perform their regular duties and when they have lost wages specifically because they need to care for a family member that is ill, want to take time out to bond with a new child, or are participating in a qualified family event (like if their military spouse is getting deployed to a foreign country).
They will also need to have contributed at least $300 to California State Disability Insurance during their employment. Naturally, they also have to be considered employees with a business when their family leave period begins. So long as they can also provide all supporting documentation, they are considered covered employees.
Employers do not need to "register" for the PFL program because in California it is mandatory. Any business operating within the state needs to collect the appropriate amount of contributions from each paycheck and send them to the EDD in a timely manner.
If you'd like to find out more information about paid family and medical leave factors that you need to account for in the state of California, or if you just have any additional questions about things like
business administration and
benefits consulting that you'd like to go over in a bit more detail, please don't delay -
contact the team at AEIS Advisors today.
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