On 4/11/2016, Governor Brown signed AB 908, which will increase the amount of California Paid Family Leave (PFL) benefits an employee can receive as of 1/1/2018. Currently, an individual’s weekly PFL benefit amount is 55% of his/her wages, up to a maximum weekly benefit amount. The new law will increase the weekly PFL benefit amount to either 60% or 70% depending on the employee’s income.
|Wages Paid (in the highest-income quarter)||Weekly Benefit Amount|
|Less than $929||$50|
|$929 or greater, but less than 1/3 of the state average quarterly wage||70% of the amount of wages paid in the highest wage quarter, divided by 13|
|Wages were at least 1/3 of the amount of the state average weekly wage||The greater of the following:23.3% of the state average weekly wage, or60% of the amount of wages paid in the highest wage quarter, divided by 13|
The current seven day waiting period required before an employee is eligible to receive PFL benefits will also be removed.
Since PFL is funded by employee contributions, the new law will not increase employer contributions; however, the State will increase the amount of employees’ disability insurance taxes.
To access the text of AB 908, please click here.
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