California Halts Employers' Right to Require PTO Before Paid Family Leave
Author: Robert S. Teachout, Brightmine Legal Editor
October 3, 2024
Beginning January 1, 2025, employers in California will no longer be able to require employees to use up to two weeks of paid time off (PTO) or vacation leave before beginning to receive state paid family leave benefits.
California has a paid family leave (PFL) program that provides up to eight weeks of wage replacement benefits to workers who take time off work to:
- Care for a seriously ill child, spouse, parent or domestic partner;
- Bond with a newborn or adopted minor child; or
- Assist military family members during active duty.
Current law authorizes an employer to require an employee to take up to two weeks of earned but unused paid leave before, and as a condition of, the employee's initial receipt of PFL benefits during any 12-month period of employee eligibility.
Under A.B. 2123, signed by Gov. Gavin Newsom, that authorization is eliminated for any qualifying PFL event that commences on or after January 1, 2025.
Employers perceived benefits to their being able to require the use of up to two weeks of PTO or vacation before workers could begin collecting PFL benefits. Doing so could prevent employees from taking additional vacations shortly after an extended absence, thereby increasing the amount of time an employee could be away from work. It also is one of the few opportunities for an employer to require employees to use paid leave concurrently with other extended mandated leave, such as the federal Family and Medical Leave Act and California Family Rights Act.
Employers should review their policies on PTO or vacation, extended leaves of absence and employee benefits contributions with a qualified employment law attorney to see whether and how this change in the PFL law impacts their operations.