Many San Francisco workers will receive their full salary for six weeks after the birth or adoption of a child, thanks to a new law passed by the San Francisco Board of Supervisors. San Francisco is the first city in the nation to mandate fully-paid parental leave.
The San Francisco law closes the gap left by California’s parental leave mandate. Under California law, employees who have paid into the state disability insurance fund may take up to six weeks of leave to bond with a new child. Those employees receive payments equal to 55 percent of their salary over the preceding five to 18 months.
San Francisco’s new parental leave law requires employers to make up the difference between the employee’s gross salary and the payments from the state disability insurance fund. In other words, San Francisco employers will be responsible for 45 percent of the employee’s salary during the six-week parental leave period. Together with the 55 percent paid by out of the state fund, employees will be paid their full salaries while bonding with a new child.
The state and city programs apply to same-sex couples, opposite-sex couples and single parents. Both mothers and fathers are eligible.
To be eligible for the benefits under San Francisco’s parental leave law, employees must meet certain requirements:
1. The employee must have been employed by their current employer at least 180 days prior to the start of the leave period;
2. The employee must perform at least eight hours of work per week for that employer in San Francisco;
3. The employee must work at least 40% of his or her weekly hours for that employer in San Francisco; and
4. The employee must be eligible to receive paid parental leave compensation under California’s program.
In order to receive benefits under San Francisco’s new law, employees must agree in writing to reimburse their employer the full amount paid if the employee quits within 90 days of returning to work after the leave period. Employees must also agree to allow their employer to apply up to two weeks of paid vacation leave to meet the employer’s obligation.
San Francisco’s new mandate will be phased in over time. Employers with 50 or more employees would be required to comply beginning on January 1, 2017. Employers with 35 or more employees would be required to comply beginning on July 1, 2017. Employers with 20 or more employees would be required to comply beginning on January 1, 2018.
The new ordinance also contains protections against retaliation. Employers are prohibited from taking any adverse action against employees in response to a request for parental leave. Adverse actions include reducing an employee’s wages, or threatening to do so; demoting or threatening to demote the employee; and discharging or threatening to discharge an employee.
Beginning on January 1, 2018, California will increase the benefits available under the state’s parental leave mandate. On that date, employees will be eligible to receive between 60 and 70 percent of their salary from the state disability insurance fund. At that time, the obligation of San Francisco employers will decrease. They will be responsible only for 30 to 40 percent of the employee’s salary during the six-week leave period.