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Paid Family Leave Insurance (Family Temporary Disability Insurance)

Published on: 12/19/2012 5:19 PM
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About the Paid Family Leave Insurance Program
 
In 2002, historic legislation was enacted to extend disability compensation to cover individuals who take time off of work to care for a seriously ill child, spouse, parent, or domestic partner, or to bond with a new child. Senate Bill 1661 established the Paid Family Leave insurance program, also known as Family Temporary Disability Insurance program, to be administered by the State Disability Insurance (SDI) program. An estimated 13 million California workers who are covered by the SDI program will also be covered for Paid Family Leave insurance benefits commencing on or after July 1, 2004.
 
Paid Family Leave is unemployment compensation disability insurance paid to workers who suffer a wage loss when they take time off work to care for a seriously ill family member or to bond with a new child.​
Workers may receive up to six (6) weeks of benefits that may be paid over a 12-month period.​
Paid Family Leave Insurance is a component of the State Disability Insurance (SDI) program. The SDI benefit portion compensates workers who suffer a wage loss when they can't work because of their own illness or injury. The Paid Family Leave benefit compensates workers who suffer a wage loss due to the need to provide care for a seriously ill family member or to bond with a new child.​
Yes, beginning January 1, 2004, employers are required to deduct the Paid Family Leave contributions from the wages of employees who are covered by the SDI program.​
The Paid Family Leave insurance program is fully funded by employees' contributions, similar to the SDI program.
Benefits will be payable for Paid Family Leave insurance claims commencing on or after July 1, 2004.​
No. Paid Family Leave benefits will be paid to eligible claimants starting July 1, 2004, as specified in the statute. The regulations clarify the statutory provisions, but cannot change the rights or responsibilities specified in the statute. The processing of all pending regulations are suspended pending a review that will reassess their impact on business. This applies to all pending regulations, including the pending Paid Family Leave regulations. After the required review, the processing of the regulations is expected to continue with another public comment period.​
The EDD plans to incorporate the regulatory changes necessary due to the enactment of SB 727 in the current regulatory proceeding. For example, SB 727 eliminated the waiting period for Paid Family Leave benefits for women who serve a waiting period before collecting SDI benefits for pregnancy and then elect to bond with their new child using Paid Family Leave benefits. Comments on these changes, as well as on EDD's responses to comments received to the initial proposed regulations, will be sought during the next public comment period on the regulations.​
For more information, click on the link to
the California Employment Development Department (EDD).