Paid Parental Leave Ordinance
The Paid Parental Leave Ordinance amends the San Francisco Police Code to require employers to provide supplemental compensation to employees who are receiving California Paid Family Leave for purposes of bonding with a new child.
Employer phase in:
A “Covered Employee” entitled to Supplemental Compensation under the PPLO is an employee:
During the leave period, Covered Employers are required to provide Supplemental Compensation in an amount such that the California Paid Family Leave compensation plus the Supplemental Compensation equals 100% of the employee’s gross weekly wage. Based on the current 55% wage replacement rate under State law, the ordinance requires employers to pay the remainder of the employee’s weekly wages during the 6-week leave period, up to a cap.1
In cases where an employee has multiple Covered Employers, the Supplemental Compensation amount is apportioned between or among the Employers based on the percentage of the employee’s total gross weekly wages received from each employer. In cases where an employee works for a Covered Employer and a non-Covered Employer, the Covered Employer is responsible only for its percentage of the employee’s total gross weekly wages.
Calculation Instructions - Step-by-step instructions on calculating the amount of Supplemental Compensation a Covered Employer must pay to a Covered Employee.
Maximum Weekly Benefit Limitation
The California Paid Family Leave (CA PFL) program places a cap on the weekly benefit amount for higher-earning workers. As of January 1, 2017, the State’s “maximum weekly benefit amount” is $1,173, which represents 55% of a person’s weekly wages based on an annual salary of approximately $110,902. Employees who earn more than $110,902 per year therefore do not receive the full 55% of their salary under the State program.1
The PPLO includes a cap on the total amount of an employee's benefits, and the cap is proportional to the CA PFL maximum weekly benefit amount. Using the 2017 CA PFL benefit cap, an employee's maximum weekly total benefit (from the state and from the employer) would be $2,133.1
1. Changing State Law: California Governor Jerry Brown signed legislation on April 11, 2016 that will increase the benefits paid by the California Paid Leave Program for paid leaves beginning on or after January 1, 2018. AB 908 will increase weekly benefits for eligible employees to 60% or in some cases 70% of the employees' weekly wages. Find the the legislation here, and check back soon for more information on how the new state law will affect San Francisco employers.
Download the Paid Parental Leave Ordinance - operative date January 1, 2017
SF Paid Parental Leave Rules published December 23, 2016 (technical corrections posted 12/29/2016 and 5/18/2017)
Please contact our office at email@example.com or at (415) 554-4190 with questions regarding the San Francisco Paid Parental Leave Ordinance.
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