SF to Require Fully Paid Family Leave

On April 5, the San Francisco Board of Supervisors approved a new ordinance that will require employers to offer paid parental leave—at full pay. The city is the first in the country to make such a mandate.

California law already requires employers to offer six weeks of paid family leave to full-time and part-time workers, paid at 55 percent of regular earnings. The state’s program is paid entirely through employee payroll deductions. San Francisco’s new law, effective January 1, 2017, will require employers to foot the bill for the remaining 45 percent. That number could shrink in the near future, as a bill increasing the state minimum percentage is awaiting Governor Jerry Brown’s signature.

Effective next year, the ordinance will only apply to employers with 50 or more workers. That minimum will go down to 20 by 2018. In order to take advantage of the benefit, employees must have worked at their company for at least 180 days.

Businesses that already offer benefits matching the new requirements will not have to offer additional paid leave.

The news closely follows the passing of New York state’s paid family leave law last week. The Namely team will continue to monitor the recent wave of paid leave mandates at the state and city level.