Beginning on January 1, 2017, the Paid Parental Leave Ordinance will require some San Francisco employers to provide six weeks of paid parental leave for purpose of bonding with a new child.  If you have employees working in San Francisco, the new Ordinance may apply to you.  Please keep reading.

Which employers are affected?

Only San Francisco employers with 20 or more employees will be required to comply with the new Ordinance and the compliance shall be gradual based on the number of employees. 

Which employees are covered?

In order to be covered by the Ordinance, the employee must:

1. Have worked for the employer for at least 180 days prior to taking leave;
2. Work at least 8 hours per week for the employer in San Francisco;
3. Work at least 40% of his or her total hours for the employer in San Francisco; and
4. Be eligible to receive paid family leave compensation under the California Paid Family Leave law (“CPFL”) for the purpose of bonding with a new child.

How does it work?

Currently, under the CPFL, the employee receives up to 55% of his or her wages when on leave for bonding with a child.  Under the Ordinance, the employer must pay 45% of the employee’s gross weekly wage.  CPFL caps the weekly benefit amount at $1,129 and, similarly, the Ordinance caps the weekly amount to $924.  If the employee voluntarily leaves the position 90 days’ after the leave, he or she will be required to pay back the employer for the paid parental leave,

Questions?

As you navigate these new changes in the law, the attorneys at Garcia & Gurney, ALC are happy to help and advise you.  Please contact us with any questions or for help applying this new law.  This summary is not exhaustive and should not be treated or considered as legal advice.