The New Parent Leave Act has made it to Governor Jerry Brown’s desk awaiting his signature or veto. This bill would mean significant expansion of parental leave for small employers in California. It is uncertain whether Governor Brown will sign the bill into law after vetoing a similar bill almost a year ago.

The New Parent Leave Act would require businesses with 20-49 employees within a 75 mile radius to provide 12 weeks of unpaid leave to eligible employees after the birth of a child, adoption or foster care placement. Eligible employees must have more than 12 months of service with the employer, and at least 1,250 hours of services during the previous 12 months of employment. Currently, employers only must provide such leave if they employ 50 or more employees.

Under this bill, employers must guarantee employment in the same or comparable position upon conclusion of the leave.  While otherwise unpaid, the New Parent Leave Act would require employers to maintain an employee’s medical benefits during the leave.  Employees may use accrued vacation pay, paid sick time or other accrued time off during the parental leave.

The previously vetoed bill provided six weeks of parental leave. In vetoing last year’s bill, Governor Brown noted the impact the bill would have on small businesses. Governor Brown wrote:

“I am concerned, however, about the impact of this leave particularly on small business and the potential liability that could result. As I understand, an amendment was offered that would allow an employee and employer to pursue mediation prior to a lawsuit being brought. I believe this is a viable option that should be explored by the author.”

Not surprisingly, one of the bill’s amendments includes a proposal of a mediation pilot program for parental leave-related claims. The California Department of Fair Employment & Housing (“DFEH”) would administer this pilot program through January 1, 2020, upon receiving necessary funding. Under the program, an employer may request that the parties participate in the DFEH’s Mediation Division Program.  Employers would have to make this request within 60 days after receiving an employee’s right to sue notice from the DFEH. Employees would not be able to bring a lawsuit until the mediation is complete.

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Time will tell whether the mediation program alone will be sufficient to address Governor Brown’s concerns regarding the impact on small businesses. If the New Parent Leave Act becomes law, it will present challenges for small employers. As an initial step, affected employers should consider updating their employee handbooks and/or policies to address parental leaves.

Please contact your Jackson Lewis attorney to discuss these developments and your specific organizational needs.

 

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Photo of Susan E. Groff Susan E. Groff

Susan E. Groff is a principal in the Los Angeles office of Jackson Lewis P.C. She is co-leader of the firm’s California Advice and Counsel resource group. The group delivers legal and practical guidance to assist employers in navigating what are frequently multi-disciplinary…

Susan E. Groff is a principal in the Los Angeles office of Jackson Lewis P.C. She is co-leader of the firm’s California Advice and Counsel resource group. The group delivers legal and practical guidance to assist employers in navigating what are frequently multi-disciplinary issues.

Susan counsels management on a host of labor and employment issues, including wage and hour laws, disability and leave management, harassment and discrimination complaints, workplace investigations, reductions in force, litigation avoidance, and discipline and termination questions.

Due to California’s nuanced and numerous disability and leave requirements, Susan dedicates much of her practice to advising employers on federal and California requirements for disability accommodation and protected leaves of absence. Importantly, she partners with employers not only on these technical disability and leave laws, but also on practical solutions in handling the same.

Susan also provides guidance to employers on California’s challenging wage and hour laws. In addition to day to day advice, she assists with employer audits, compensation plan reviews, and policies in this area.

Photo of Benjamin A. Tulis Benjamin A. Tulis

Benjamin Tulis is a principal in the Los Angeles, California, office of Jackson Lewis P.C. His practice focuses on advice and counsel within the labor and employment law sector. Ben is a member of the California Advice and Counsel resource group.

Ben counsels…

Benjamin Tulis is a principal in the Los Angeles, California, office of Jackson Lewis P.C. His practice focuses on advice and counsel within the labor and employment law sector. Ben is a member of the California Advice and Counsel resource group.

Ben counsels employers on a host of employment issues, including wage and hour laws, leaves of absence, employment-related agreements, incentive plans, independent contractor classifications, exempt/non-exempt classifications, company policies, reductions in force, workplace investigations, employee discipline, litigation avoidance and helping employers address legal developments on the fly as they arise. Ben assists employers with a wide variety of employment-related agreements, including but not limited to employment agreements, confidentiality agreements, commission agreements, incentive plans, contractor agreements, severance agreements, arbitration agreements and various other agreements with employees and third parties. Ben helps employers develop incentive arrangements, including commission arrangements with industry-specific compliance issues.