Increase in Family Leave Claims
California’s Paid Family Leave program has seen an increase in usage following a recent state law that expanded parents’ payment benefits. According to new state data, this change resulted in a 16% increase in claims in the first two quarters of this year compared to the same period last year. Prior to this change, workers would receive up to 60% of their income during leave. Now, most workers can receive up to 90% of their wages. This change was initiated by legislation in 2022 with an aim to enable more families, including low-income workers, to take leave. The increase in claims varies, with those making under $20,000 a year seeing a 2% increase, while those making under $60,000 a year having a claim increase of about 17%. The Paid Family Leave program in California is funded through the State Disability Insurance program, contributing to about 18 million employees in the state.
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