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California Mandates Small Employers Provide Unpaid/Job Protected Parental Leave

Author: Jody Rodney/Tuesday, October 17, 2017/Categories: Compliance Corner

Overview.  Signed into law on October 12, 2017, California’s “New Parent Leave Act” (the “Act”) requires employers with between 20 and 49 employees to provide up to 12 weeks of unpaid job-protected parental leave to bond with a new child.  The Act effectively extends job-protected leave to smaller employers not covered by the federal Family and Medical Leave Act or the California Family Rights Act. NOTE: the leave is limited to “Parental Leave” as defined in the law. 
Effective Date.  The new law goes takes effect on January 1, 2018.
Details. 

Who is Covered. 
Employers – Employers that employ at least 20 employees within 75 miles. It does not apply to an employee who is covered under both CFRA and the FMLA. Those laws apply to employers with 50 or more employees. Therefore, the practical effect is that this bill applies to employers with between 20 and 49 employees within 75 miles.
Employees –Employees with more than 12 months of service with the employer, who have at least 1,250 hours of service with the employer during the previous 12-month period.

Permissible Reasons for Leave.  The Act makes it unlawful for a covered employer to refuse to allow a covered employee to take up to 12 weeks of parental leave to bond with a new child within one year of the child’s birth, adoption, or foster care placement. It is important to note that this leave is limited to these “parental leave” purposes.

Notice of Job Protection.   In addition, if, before the start of the leave, the employer does not provide the employee with a guarantee of employment in the same or a comparable position following the leave, they will be deemed to have refused to allow the leave. In other words, a covered employer is required to provide up to 12 weeks of “job-protected” unpaid leave to covered employees for new parental responsibilities.

Unpaid, But Could Be Paid.  The leave is unpaid. However, the employee shall be entitled to utilize accrued vacation pay, paid sick time, other accrued paid time off, or other paid or unpaid time off negotiated with the employer, during the period of parental leave.

Call to Action.  California employers with between 20 and 49 employees within 75 miles should carefully review and revise their leave policies to comply with the new requirements of the law.