For periods of disability commencing on or after January 1, 2018, Assembly Bill 908 will increase the benefits provided to individuals in the Paid Family Leave and State Disability Insurance programs. AB 908 raises the level of benefits from the previous level of 55 percent of an applicant’s wages to 60 or 70 percent of the applicant’s wages depending on the applicant’s income. Low income employees are eligible for the maximum benefit level of 70 percent. AB 908 also removes the prior seven-day period that employees had to wait in order to gain eligibility for family temporary disability benefits. Regardless of the program used, payments cannot exceed the maximum workers’ compensation temporary disability indemnity weekly benefit amount established by the Department of Industrial Relations pursuant to existing law.
As employer’s know, the Paid Family Leave program provides up to six weeks of wage replacement to employees who take time off work to care for a seriously ill or injured family member or to bond with a child within one year of birth or placement of the child via foster care or adoption. The State Disability Insurance program provides benefits to persons who are unable to work due to their own illness or injury for up to one year. AB 908’s percentage increase and removal of the waiting period thus represent substantial increases in benefits for employees who take advantage of these programs.
Upcoming Seminar: New Laws for 2018
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