Calif. Enacts Paid Family Leave Bill
Mon Sep 23,10:22 PM ET
By PAUL CHAVEZ, Associated Press Writer
LOS ANGELES (AP) - Gov. Gray Davis ( news - web sites) signed a law
Monday that makes California the first state to offer workers paid family leave.
The law — financed by an employee payroll tax —
allows workers to take six weeks off to care for a
newborn, a newly adopted child or ill family member.
Employees will be eligible to receive 55 percent of
their wages during their absence, up to a maximum
of $728 a week.
"I don't want Californians to choose between being
good parents and good employees," said Davis, a
Democrat running for re-election in November.
Supporters hope the bill will serve as a nationwide model, while business
groups denounced it as too costly for employers.
Federal law grants up to 12 weeks of unpaid leave for workers at businesses
with more than 50 employees.
The paid-leave law is the latest of several groundbreaking social and
environmental laws passed in California this year. Earlier, California became the
first state to regulate greenhouse gas emissions. On Sunday, Davis signed a
bill to allow stem cell research in the state — a move that runs counter to Bush
administration policy.
Under the new paid-leave program, workers will be allowed to start taking time
off as of July 1, 2004.
The program will be funded entirely by employee payroll deductions, averaging
about $27 a year and ranging up to $70 a year for those earning more than
$72,000 annually.
About 13 million of California's 16 million workers will be eligible. State and local
government employees contribute to a different plan.
Businesses with fewer than 50 employees are not required to hold a job for a
worker who goes on paid family leave, according to the AFL-CIO, which helped
write the bill.
Nevertheless, AFL-CIO President John Sweeney called the bill landmark
legislation and said he hopes other states will follow suit.
Twenty-seven other states, including Massachusetts, New York, New Jersey
and Washington, have introduced similar legislation.
GOP gubernatorial candidate Bill Simon, Davis' rival in the November election,
called the bill a "one-size-fits-all mandate" that will prove too costly for small
businesses.
He said in a statement that workers should be able to decide whether to take
part, and incentives should be offered to employers. "This avoids taxing every
employee and employer in the labor force in order to provide a benefit not
everyone wants," he said.
California business groups had tried to kill the bill.
"It's very discouraging, and California small businesses are going to pay the
price for this bill," said Julianne Broyles, a lobbyist for the California Chamber of
Commerce ( news - web sites). "They are going to have to compete with similar
businesses in other states that don't have to contend with this."
She said the law fails to address the real cost to employers, which includes
paying for overtime, replacement workers and training to fill in for those who go
on family leave.
This is good news for small businesses. Take that leave, and you're fired! At least it will keep people working there.