San Francisco Mandates Paid Parental Leave

holding-hands-918990_640San Francisco Mayor, Edwin Lee, has signed into law the Paid Parental Leave for Bonding with New Child Ordinance or Paid Parental Leave Ordinance (PPLO). This makes San Francisco the first city in the country to require that parents receive six weeks of fully paid parental leave (PPL) to bond with a new child.

San Francisco’s leave program is meant to complement the California Paid Family Leave (CPFL) program, which provides up to 55% of an employee’s wages and is funded through the state’s unemployment insurance law. The city’s leave program requires an employer to provide the additional 45% of a qualified employee’s wages so that an employee can receive a combined total of 100% of wages during a parental leave.

Covered employees are those who:

  • Worked for employer for at least 180 days prior to beginning of leave
  • Perform at least eight hours of work per week for employer in San Francisco
  • Work at least 40% of total hours worked for the employer in San Francisco
  • Must be eligible to receive CPFL compensation for the purposes of bonding with a newborn, newly adopted, or foster child
  • Must allow employer, at employer’s discretion, to use up to two weeks of employee’s unused vacation pay to assist it in meeting PPL obligations

Date of implementation depends on an employer’s size (total number of employees, regardless of location):

  • 50 or more employees: January 1, 2017
  • 35 or more employees: July 1, 2017
  • 20 or more employees: January 1, 2018
  • Fewer than 20 employees: exempt
  • City and state governmental employees: exempt

Coastal Payroll has a team of certified HR Professionals for additional questions and support.  Contact us at info@coastalpayroll.com for access.