State paid leave continues to grow as a policy priority, not only for those states taking their first steps into the paid leave space but also for those looking to update and expand existing standards.
On December 18, California Assembly Member Lorena Gonzalez introduced AB 123, which proposes expanding the state’s current paid family and medical leave insurance program benefits from 70% of an employee’s average weekly wage to 90%. In order to fund the proposed increase in benefit payments, there will undoubtedly need to be an equivalent increase in the contributions made by California employees. This pay-for exchange, however, is not addressed in the bill’s legislative text.
This proposal follows several changes made last year to California’s paid and unpaid leave laws. It also demonstrates the aim of early paid leave program adopters, like California, to update their policies to match some of the more progressive state programs enacted in recent years.
As state legislatures gear up for 2021 legislative sessions, ERIC will continue to place the perspective of large employers at the center of this policy debate.
