Employment Law Update

July 1, 2004

Paid Family Leave
Beginning today, July 1, 2004, the benefits phase of California’s new Paid Family Leave (“PFL”) law will go into effect. Employees may now apply for and receive PFL compensation. An employee seeking to take a qualifying leave and receive PFL benefits must complete an Employment Development Department (“EDD”) claim form. Claimants seeking PFL benefits must submit an original claim form to the EDD. The forms may be obtained from any EDD office. The claim form cannot be downloaded or reproduced and only an original will suffice. While there is no requirement that employers provide claim forms, employers can order claim forms at no charge from the EDD’s Internet website at www.edd.ca.gov. The website also has a sample form which provides helpful information on completing and submitting a PFL application.

As a refresher, PFL does not grant an employee the right to take a leave of absence. PFL, like State Disability Insurance (“SDI”), is strictly a wage replacement statute. Like SDI, it is also funded entirely through employee payroll taxes. Employees who qualify for PFL are entitled to 6 weeks of wage replacement in any 12 month period. PFL applies to all employers with one or more employees and applies immediately upon employment and the need for qualifying leave. A leave is qualifying if it is taken to care for a seriously ill family member or to bond with a newly born or placed child. For example, if an employee adopts a child, that employee is entitled to six weeks of wage replacement from the State to bond with the child.

As we have reviewed in prior Alerts, the PFL law requires employers to provide the PFL brochure (DE 2511) to all employees hired after January 1, 2004 and to any employee seeking PFL benefits. Employers are also required to post PFL information. Employers may download and print the PFL brochure and poster from the Employment Development Department’s (“EDD”) Internet website at www.edd.ca.gov. Downloading and distributing the brochures and posting the information meets the statutory requirements. Employers can also order brochures and the poster from the EDD.

An employer may require an employee to use up to two weeks of accrued vacation time prior to becoming eligible for PFL benefits. An employee who takes a leave and qualifies for PFL benefits has no reinstatement rights. This means that even if an employee qualifies for and receives PFL benefits, he or she does not have a right under PFL to be reinstated to his or her job at the conclusion of the leave unless reinstatement is required by another leave law such as the Family Medical Leave Act or the Pregnancy Disability Leave Act. For example, if an employee on his second day of work decides to take time off to care for a seriously ill parent, the employer is not required to continue his employment. The employee will receive PFL benefits from the State for six weeks, but he will not be employed and will have no right to reinstatement.

Please contact us if you have any questions about implementation of this new aspect of the PFL law.


Please contact us if you have questions or want more information. Please note that the information contained in this newsletter is not intended to provide specific legal advice. You should consult with an attorney and not rely on any information contained herein regarding your specific situation.