The latest California law prohibits employers from necessitating employees to use their earned vacation before utilizing Paid Family Leave (PFL) benefits. Assembly Bill 2123, effective from January 1, 2025, amends the Unemployment Insurance Code, which previously allowed employers to mandate employees to drain up to two weeks of accumulated vacation leave prior to receiving PFL benefits for the first time. As of January 1, 2025, companies can no longer impose such a requirement. The PFL scheme provides eligible employees with benefits to attend to ailing family members, bond with a newborn, or provide assistance when a member of their military family is assigned overseas. The bill’s legislative history reveals that it’s meant to ease the PFL application process and eliminate hindrances to accessing these benefits.

This change in law does not mean employers have lost all control. Employers can still encourage the use of accumulated vacation to supplement PFL benefits, whereby accrued vacation is used to cover the difference between PFL and the regular wages or vacation that the employee might otherwise receive. Additionally, employees may also opt to enhance their PFL benefits with company-provided benefits, keeping in mind that the combined figure should not exceed their normal pay. Alterations to the law are on the horizon with AB 2123, hence, it’s crucial that employers reassess their policies related to vacation, leaves of absence, and contributions towards benefits to ensure conformity with the law.

For more information and assistance regarding how to contact PFL, visit eddcaller.com. This online portal is designed to aid applicants and current beneficiaries in reaching out to PFL, guiding them through the process and providing resources on how to get a hold of Paid Family Leave. Thus, allowing for seamless communication and enhanced understanding of the PFL system.