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Paid family leave law signed
LOS ANGELES, California (Reuters) -- California on Monday became the first state to enact comprehensive legislation giving most workers paid leave to bond with a new baby or adopted child or to care for a sick family member. "I don't want Californians to have to choose between being good parents and being good employees," California Governor Gray Davis said at a bill-signing ceremony in Los Angeles. The measure, expected to affect about 13 million of the state's 16 million workers, provides for most employees to be paid about 55 percent of their salary for six weeks of leave for a new child or sick relative. Davis said three out of four Americans eligible for family leave, which is unpaid, under a 1993 federal law don't take it because they can't afford to give up their paychecks. "This will allow Californians to get through a difficult time without going broke," the governor said. The program will expand the state fund providing insurance for disabled workers, but will be funded entirely by employee payroll deductions, averaging about $26 a year. Workers will be allowed to take leaves to bond with a new child -- whether by birth, adoption or foster care -- or to take care of a sick child, spouse or domestic partner, parent or, in some cases, grandparent. "When you are trying to recover from recession it's the wrong time to raise taxes, certainly the wrong time to fund new programs," said Allan Zaremberg, president of the California Chamber of Commerce. The bill's author, California Sheila Kuehl, a Santa Monica Democrat, called the measure "historic" and said the state's local chambers of commerce "are gonna learn to love it." Under the new law, workers who pay into the state's disability insurance system are eligible for the paid leaves. State government employees are not included because California covers them under a self-insured disability program. Payroll deductions for eligible workers -- ranging up to $70 a year for people earning more than $72,000 a year -- will begin in January 2004. Workers will be allowed to start taking the leaves as of July 1, 2004. The maximum payment will be $728 a week, and the payments will not be taxed. Zaremberg said the new program, although funded through payroll deductions, will result in a host of indirect costs for businesses, such as overtime or the cost of hiring a temporary employee or consultant to fill in for the absent worker. "This is a significant burden for small businesses," he added. The existing federal leave law, as well as California's previous law, exempted employers with fewer than 50 workers. Davis, however, said the new law makes California a more attractive place to work, which is a benefit to businesses needing to hire and retain key workers. "We expect the California measure to lead to advances across the country," said Judith Lichtman, president of the National Partnership for Women and Families, a Washington-based advocacy group. She said there are paid family leave benefit bills pending in 27 states. "We are optimistic that from now on we will see leadership from every other state," Lichtman said. "The labor movement has worked for more than 20 years to encourage states to pass such legislation and applauds California's leadership ...," John Sweeney, president of the AFL-CIO, said in a statement. Copyright 2002 Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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