Earlier this week, California’s Governor signed into law AB 908, which, beginning January 1, 2018, increases the wage replacement rate for employees receiving disability insurance and/or paid family leave benefits through the state. Currently, the maximum wage replacement is about 55% of the employee’s compensation. Effective January 2018, this amount will increase to 60 or 70 percent of the employee’s compensation, depending on the employee’s income level. The new law will also eliminate the 7-day waiting period for receipt of paid family leave benefits. A copy of the new law is available here.
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