Existing unemployment compensation disability law requires workers to pay contribution rates based on, among other things, wages received in employment and benefit disbursement, for payment into the Unemployment Compensation Disability Fund, for purposes of compensating in part for the wage loss sustained by any individual who is unable to work due to the employees own sickness or injury, among other reasons. Existing law sets forth standards for eligibility to receive unemployment compensation disability benefits.

Existing law establishes, within the above state disability insurance program, a family temporary disability insurance program, also known as the paid family leave program, for the provision of wage replacement benefits for up to 8 weeks to workers who take time off work for prescribed purposes, including to care for a seriously ill family member.

Existing law requires, for purposes of unemployment compensation disability benefits, the Employment Development Department to issue the initial payment for unemployment compensation disability benefits to a monetarily eligible claimant who is otherwise determined eligible by the department within 14 days of receipt of the claimants properly completed first disability claim. Existing law provides for purposes of the paid family leave program that eligible workers shall receive benefits generally in accordance with unemployment and disability compensation law.

This bill would instead require, for purposes of unemployment compensation disability benefits, the issuance of the initial payment for those benefits within 14 days of receipt of the claimants properly completed first disability claim or as soon as eligibility begins, whichever is later. The bill would apply the same initial payment issuance schedule applicable to unemployment compensation disability benefits to the paid family leave program and repeal the requirement that eligible workers receive benefits generally in accordance with unemployment and disability compensation law. The bill would make these changes operative when these changes are incorporated in the Employment Development Departments integrated claims management system as part of the EDDNext project.

Under the state disability insurance and paid family leave programs, a first claim is required to be filed not later than the 41st consecutive day following the first compensable day with respect to which the claim is made for benefits, as specified.

This bill would authorize an individual to initiate the claims process up to 30 days in advance of the anticipated first compensable day. The bill would make these changes operative when the changes are incorporated in the Employment Development Departments integrated claims management system as part of the EDDNext project.

Existing unemployment compensation disability law requires workers to pay contribution rates based on, among other things, wages received in employment and benefit disbursement, for payment into the Unemployment Compensation Disability Fund, for purposes of compensating in part for the wage loss sustained by any individual who is unable to work due to the employees own sickness or injury, among other reasons. Existing law sets forth standards for eligibility to receive unemployment compensation disability benefits.

Existing law establishes, within the above state disability insurance program, a family temporary disability insurance program, also known as the paid family leave program, for the provision of wage replacement benefits for up to 8 weeks to workers who take time off work for prescribed purposes, including to care for a seriously ill family member.

Existing law requires, for purposes of unemployment compensation disability benefits, the Employment Development Department to issue the initial payment for unemployment compensation disability benefits to a monetarily eligible claimant who is otherwise determined eligible by the department within 14 days of receipt of the claimants properly completed first disability claim. Existing law provides for purposes of the paid family leave program that eligible workers shall receive benefits generally in accordance with unemployment and disability compensation law.

This bill would instead require, for purposes of unemployment compensation disability benefits, the issuance of the initial payment for those benefits within 14 days of receipt of the claimants properly completed first disability claim or as soon as eligibility begins, whichever is later. The bill would apply the same initial payment issuance schedule applicable to unemployment compensation disability benefits to the paid family leave program and repeal the requirement that eligible workers receive benefits generally in accordance with unemployment and disability compensation law. The bill would make these changes operative when these changes are incorporated in the Employment Development Departments integrated claims management system as part of the EDDNext project.

Under the state disability insurance and paid family leave programs, a first claim is required to be filed not later than the 41st consecutive day following the first compensable day with respect to which the claim is made for benefits, as specified.

This bill would authorize an individual to initiate the claims process up to 30 days in advance of the anticipated first compensable day. The bill would make these changes operative when the changes are incorporated in the Employment Development Departments integrated claims management system as part of the EDDNext project.

Existing unemployment compensation disability law requires workers to pay contribution rates based on, among other things, wages received in employment and benefit disbursement, for payment into the Unemployment Compensation Disability Fund, for purposes of compensating in part for the wage loss sustained by any individual who is unable to work due to the employees own sickness or injury, among other reasons. Existing law sets forth standards for eligibility to receive unemployment compensation disability benefits.

Existing law establishes, within the above state disability insurance program, a family temporary disability insurance program, also known as the paid family leave program, for the provision of wage replacement benefits for up to 8 weeks to workers who take time off work for prescribed purposes, including to care for a seriously ill family member.

Existing law requires, for purposes of unemployment compensation disability benefits, the Employment Development Department to issue the initial payment for unemployment compensation disability benefits to a monetarily eligible claimant who is otherwise determined eligible by the department within 14 days of receipt of the claimants properly completed first disability claim. Existing law provides for purposes of the paid family leave program that eligible workers shall receive benefits generally in accordance with unemployment and disability compensation law.

This bill would instead require, for purposes of unemployment compensation disability benefits, the issuance of the initial payment for those benefits within 14 days of receipt of the claimants properly completed first disability claim or as soon as eligibility begins, whichever is later. The bill would apply the same initial payment issuance schedule applicable to unemployment compensation disability benefits to the paid family leave program and repeal the requirement that eligible workers receive benefits generally in accordance with unemployment and disability compensation law. The bill would make these changes operative when the next scheduled improvement of these changes are incorporated in the Employment Development Departments integrated claims management system is implemented. as part of the EDDNext project.

Under the state disability insurance and paid family leave programs, a first claim is required to be filed not later than the 41st consecutive day following the first compensable day with respect to which the claim is made for benefits, as specified.

This bill would provide that the first claim shall also be filed not earlier than 30 days prior to the first compensable day with respect to which the claim is made for benefits. authorize an individual to initiate the claims process up to 30 days in advance of the anticipated first compensable day. The bill would make these changes operative when the next scheduled improvement of changes are incorporated in the Employment Development Departments integrated claims management system is implemented. as part of the EDDNext project.

Existing unemployment compensation disability law requires workers to pay contribution rates based on, among other things, wages received in employment and benefit disbursement, for payment into the Unemployment Compensation Disability Fund, for purposes of compensating in part for the wage loss sustained by any individual who is unable to work due to the employees own sickness or injury, among other reasons. Existing law sets forth standards for eligibility to receive unemployment compensation disability benefits.

Existing law establishes, within the above state disability insurance program, a family temporary disability insurance program, also known as the paid family leave program, for the provision of wage replacement benefits for up to 8 weeks to workers who take time off work for prescribed purposes, including to care for a seriously ill family member.

Existing law requires, for purposes of unemployment compensation disability benefits, the Employment Development Department to issue the initial payment for unemployment compensation disability benefits to a monetarily eligible claimant who is otherwise determined eligible by the department within 14 days of receipt of the claimants properly completed first disability claim. Existing law provides for purposes of the paid family leave program that eligible workers shall receive benefits generally in accordance with unemployment and disability compensation law.

This bill would instead require, for purposes of unemployment compensation disability benefits, the issuance of the initial payment for those benefits within 14 days of receipt of the claimants properly completed first disability claim or as soon as eligibility begins, whichever is later. The bill would apply the same initial payment issuance schedule applicable to unemployment compensation disability benefits to the paid family leave program and repeal the requirement that eligible workers receive benefits generally in accordance with unemployment and disability compensation law. The bill would make these changes operative when the next scheduled improvement of the Employment Development Departments integrated claims management system is implemented, or on January 1, 2028, whichever is earlier. implemented.

Under the state disability insurance and paid family leave programs, a first claim is required to be filed not later than the 41st consecutive day following the first compensable day with respect to which the claim is made for benefits, as specified.

This bill would provide that the first claim shall also be filed not earlier than 30 days prior to the first compensable day with respect to which the claim is made for benefits. The bill would make these changes operative when the next scheduled improvement of the Employment Development Departments integrated claims management system is implemented, or on January 1, 2028, whichever is earlier. implemented.

Existing unemployment compensation disability law requires workers to pay contribution rates based on, among other things, wages received in employment and benefit disbursement, for payment into the Unemployment Compensation Disability Fund, for purposes of compensating in part for the wage loss sustained by any individual who is unable to work due to the employees own sickness or injury, among other reasons. Existing law sets forth standards for eligibility to receive unemployment compensation disability benefits.

Existing law establishes, within the above state disability insurance program, a family temporary disability insurance program, also known as the paid family leave program, for the provision of wage replacement benefits for up to 8 weeks to workers who take time off work for prescribed purposes, including to care for a seriously ill family member.

Existing law requires, for purposes of unemployment compensation disability benefits, the Employment Development Department to issue the initial payment for unemployment compensation disability benefits to a monetarily eligible claimant who is otherwise determined eligible by the department within 14 days of receipt of the claimants properly completed first disability claim. Existing law provides for purposes of the paid family leave program that eligible workers shall receive benefits generally in accordance with unemployment and disability compensation law.

This bill would instead require, for purposes of unemployment compensation disability benefits, the issuance of the initial payment for those benefits within 14 days of receipt of the claimants properly completed first disability claim or as soon as eligibility begins, whichever is later. The bill would apply the same initial payment issuance schedule applicable to unemployment compensation disability benefits to the paid family leave program and repeal the requirement that eligible workers receive benefits generally in accordance with unemployment and disability compensation law. The bill would make these changes operative when the next scheduled improvement of the Employment Development Departments integrated claims management system is implemented, or on January 1, 2028, whichever is earlier.

Under the state disability insurance and paid family leave programs, a first claim is required to be filed not later than the 41st consecutive day following the first compensable day with respect to which the claim is made for benefits, as specified.

This bill would provide that the first claim shall also be filed not earlier than 30 days prior to the first compensable day with respect to which the claim is made for benefits. The bill would make these changes operative when the next scheduled improvement of the Employment Development Departments integrated claims management system is implemented, or on January 1, 2028, whichever is earlier.

Existing unemployment compensation disability law requires workers to pay contribution rates based on, among other things, wages received in employment and benefit disbursement, for payment into the Unemployment Compensation Disability Fund, for purposes of compensating in part for the wage loss sustained by any individual who is unable to work due to the employees own sickness or injury, among other reasons. Existing law sets forth standards for eligibility to receive unemployment compensation disability benefits.

Existing law establishes, within the above state disability insurance program, a family temporary disability insurance program, also known as the paid family leave program, for the provision of wage replacement benefits for up to 8 weeks to workers who take time off work for prescribed purposes, including to care for a seriously ill family member.

Existing law requires, for purposes of unemployment compensation disability benefits, the Employment Development Department to issue the initial payment for unemployment compensation disability benefits to a monetarily eligible claimant who is otherwise determined eligible by the department within 14 days of receipt of the claimants properly completed first disability claim. Existing law provides for purposes of the paid family leave program that eligible workers shall receive benefits generally in accordance with unemployment and disability compensation law.

This bill would instead require, for purposes of unemployment compensation disability benefits, the issuance of the initial payment for those benefits within 14 days of receipt of the claimants properly completed first disability claim or as soon as eligibility begins, whichever is later. The bill would apply the same initial payment issuance schedule applicable to unemployment compensation disability benefits to the paid family leave program and repeal the requirement that eligible workers receive benefits generally in accordance with unemployment and disability compensation law.

Under the state disability insurance and paid family leave programs, a first claim is required to be filed not later than the 41st consecutive day following the first compensable day with respect to which the claim is made for benefits, as specified.

This bill would provide that the first claim shall also be filed not earlier than 30 days prior to the first compensable day with respect to which the claim is made for benefits.

 UNFINISHED BUSINESS  

Bill No: SB 1090

Author: Durazo (D), et al.

Amended: 8/19/24

Vote: 21

SENATE LABOR, PUB. EMP. & RET. COMMITTEE: 5-0, 4/24/24

AYES: Smallwood-Cuevas, Wilk, Cortese, Durazo, Laird

SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/16/24

AYES: Caballero, Jones, Ashby, Becker, Bradford, Seyarto, Wahab

SENATE FLOOR: 38-0, 5/24/24

AYES: Alvarado-Gil, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk

NO VOTE RECORDED: Allen, Archuleta

ASSEMBLY FLOOR: 77-0, 8/28/24 - See last page for vote

SUBJECT: Unemployment insurance: disability and paid family leave: claim administration

SOURCE: Author

DIGEST:

This bill authorizes workers to file a claim for State Disability Insurance (SDI) or Paid Family Leave (PFL) benefits up to 30 days in advance of the first compensable day of disability and requires the Employment Development Department (EDD) to issue payment on those claims within 14 days of receipt (per existing law) or as soon as eligibility begins for the claimant, whichever is later.

Assembly Amendments

clarified that these changes become operative when they are incorporated in EDD’s integrated claims management system as part of the EDDNext Project.

ANALYSIS:

Existing law:

1. Establishes the Employment Development Department (EDD) to, among other duties, administer the Unemployment Insurance and Disability Insurance programs. (Unemployment Insurance Code §301)
2. Establishes the State Disability Insurance program as a partial wage-replacement plan funded through employee payroll deductions that is available through the Disability Insurance and Paid Family Leave programs to eligible individuals. (Unemployment Insurance Code §2601-3308)
3. Provides, through the State Disability Insurance (SDI) program, short-term wage replacement benefits to eligible workers who are unable to work due to a non-work-related illness or injury. SDI benefits can be used for an illness or injury, either physical or mental, which prevents an employee from performing their regular and customary work and includes elective surgery, pregnancy, childbirth, or other medical conditions. (Unemployment Insurance Code §2601-3308)
4. Provides, through the Paid Family Leave (PFL) program, eligible employees up to eight weeks of wage replacement benefits within a 12-month period to workers who need to take time off work for the following reasons:
   1. To care for a seriously ill child, spouse, parent, grandparent, grandchild, sibling, or domestic partner;
   2. To bond with a minor child within one year of the birth or placement of the child in connection with foster care or adoption;
   3. To participate in a qualifying event because of a family member’s military deployment. (Unemployment Insurance Code §3301)
5. Requires an SDI and PFL claim, accompanied by a certificate on a form furnished by EDD, to be filed no later than the 41st consecutive day following the first compensable day, with the possibility for extensions upon a showing of good cause, as specified. (Unemployment Insurance Code §2706.1 and §3301)
6. Requires EDD to issue the initial payment for both SDI and PFL benefits to a monetarily eligible claimant who is otherwise determined eligible by the department under applicable law and regulation within 14 days of receipt of their properly completed claim. (Unemployment Insurance Code §2701.5 and §3304)

This bill:

1. Authorizes workers to file a claim for SDI or PFL benefits up to 30 days in advance of the first compensable day of disability with respect to that claim.
2. Requires EDD to issue payments for SDI or PFL benefits to eligible claimants within 14 days of receipt of the properly completed claim (existing law) or as soon as eligibility begins for the claimant, whichever is later.
3. Makes these changes operative when these changes are incorporated in EDD’s integrated claims management system as part of the EDD Next Project.

Background

The State Disability Insurance (SDI) program, administered by the EDD, was created in 1946 to provide monetary benefits to workers unable to work due to non-work-related illness, injury, or pregnancy. Benefits are payable for a maximum of 52 weeks and provide a wage replacement of about 60-70 percent. The SDI program is financed solely by worker contributions and covers approximately 18 million individuals.

In 2004, California was the first state in the nation to implement a Paid Family Leave program (administered as part of SDI) that provides benefits to workers who need to take time off to care for a seriously ill family member, or to bond with a new child either from birth, adoption, or foster care placement. Effective January 1, 2021, the PFL scope was expanded to include employees taking time off work to assist a military family member under covered active duty or call to covered active duty. PFL provides up to eight weeks of the 60-70 percent wage replacement.

In 2022, SB 951 (Durazo) was adopted to, among other things, for claims commencing on or after January 1, 2025, revise the formula for determining benefits under both the SDI and PFL programs to provide an increased wage replacement rate ranging from 70-90 percent based on the individual’s wages.

The EDDNext Project is an ongoing modernization effort to completely transform the EDD customer and employee experience. EDD is updating online applications, contact centers, the claims process, policies, procedures, and forms, to make the EDD experience easier and faster.

Need for this bill? For both SDI and PFL programs, existing law requires that a claimant wait to apply for benefits until the first day they suffer a wage loss. EDD will then process the application and, barring any issues, is required to issue initial payment of benefits within 14 days of receipt of the properly completed claim. Delays in receipt of benefits can occur if an application contains errors or there is an issue with receipt of the doctor’s certification. This bill will allow claimants, when the use of SDI and PFL is foreseeable, to apply up to 30 days prior to the first compensable day of disability and clarifies that benefits must be provided within 14 days or as soon as eligibility begins, whichever is later.

According to the author, “even if nothing goes wrong with the claims process, asking a worker to wait to apply for the benefit until their hands are full with a new baby or they are recovering from major surgery is unnecessarily burdensome. This can result in an overwhelmed or incapacitated worker delaying their application for benefits for several days or weeks, which in turn pushes receipt of their benefits further out.”

The author additionally states that, “this small change would enable workers to apply before they are in the midst of a significant health or caregiving need. It would also provide workers with more economic certainty by allowing them to know whether they qualify for benefits and how much money they will receive before beginning an unpaid leave from work. Finally, it would make PFL and SDI more accessible to lower-to-middle income families by decreasing the wait to receive their benefits.”

Related/Prior Legislation

AB 2123 (Papan, 2024) deletes the authorization for an employer to require an employee to take two weeks of vacation leave before accessing benefits under the PFL program. Pending concurrence on the Assembly Floor.

AB 2167 (Cervantes, 2024) makes several changes to the PFL program to, among other things, extend the timeline for an individual to file a claim for PFL and SDI benefits to no later than the 60th consecutive day following the first compensable day as well as authorizing the individual to file that claim up to 60 days before the first compensable day, as provided. AB 2167 was held under submission in Senate Appropriations Committee.

AB 518 (Wicks, 2023) would have expanded eligibility for benefits under the PFL program to include individuals who take time off work to care for a seriously ill designated person.

AB 575 (Papan, 2023, Vetoed) would have expanded eligibility for the PFL program to provide benefits to workers who take time off work to bond with a minor child within one year of assuming responsibilities of a child in loco parentis, as defined. Additionally, this bill would have deleted (1) the restriction in law specifying that an individual is not eligible for PFL benefits if another family member is ready, willing, and able and available to provide the required care, and (2) the authorization for an employer to require an employee to take two weeks of vacation leave before accessing PFL benefits that are funded by employees.

SB 951 (Durazo, Chapter 878, Statutes of 2022), revised the formula for the computation of SDI and PFL benefits to increase the wage replacement available to claimants.

SB 1058 (Durazo, Chapter 317, Statutes of 2022), required EDD to collect demographic data, including race and ethnicity data and sexual orientation and gender identity data, for individuals who claim disability benefits under the SDI and PFL programs.

AB 1041 (Wicks, Chapter 748, Statutes of 2022), expanded the list of individuals for which an employee can take leave under the California Family Rights Act and the Healthy Workplaces, Healthy Families Act of 2014 to include a designated person.

SB 83 (Committee on Budget and Fiscal Review, Chapter 24, Statutes of 2019), beginning July 1, 2020, extended from six to eight weeks the maximum duration of PFL benefits individuals may receive.

SB 1123 (Jackson, Chapter 849, Statutes of 2018) expanded the PFL program to include time off to participate in a qualifying exigency related to covered active duty, as defined, or call to covered active duty of the individual’s spouse, domestic partner, child, or parent in the armed forces.

SB 770 (Jackson, Chapter 350, Statutes of 2013) expanded the definition of family to include in-laws, siblings and grandparents.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

According to the Assembly Appropriations Committee:

One-time costs of approximately $5.8 million to EDD to update existing technology systems and revise regulations, forms, and public materials; and ongoing costs of approximately $100,000 to EDD for systems support and maintenance (Unemployment Compensation Disability Fund).

SUPPORT: (Verified 8/22/24)

California Work & Family Coalition (co-source)

Legal Aid at Work (co-source)

AAAJ - Asian Law Caucus
AARP
Alzheimer’s Association California
Alzheimer's Greater Los Angeles
Alzheimer's Orange County
Alzheimer's San Diego

American Federation of State, County and Municipal Employees
Asian Law Alliance

Association of California Caregiver Resource Centers

Black Californians United for ECE
BreastfeedLA
California Breastfeeding Coalition
California Catholic Conference
California Child Care Resource and Referral Network
California Coalition on Family Caregiving
California Domestic Workers Coalition
California Employment Lawyers Association
California Federation Business and Professional Women
California Labor Federation

California Pan-Ethnic Health Network
California Partnership to End Domestic Violence
California Teachers Association
California WIC Association
Californians for Safety and Justice
CAMEO Network

Caring Across Generations

Center for Workers' Rights
Child Care Law Center
Citizens for Choice
Courage California
Electric Universe
Equal Rights Advocates
Equality California
Evolve California
Family Caregiver Alliance

First 5 Association of California

First 5 California
Food Empowerment Project
Friends Committee on Legislation of California
GRACE/End Child Poverty in California
Human Impact Partners
Jewish Center for Justice
LA Alliance for A New Economy
LA Best Babies Network
Lutheran Office of Public Policy - California
Mujeres Unidas Y Activas
National Council of Jewish Women CA
National Council of Jewish Women Los Angeles

National Health Law Program
National Partnership for Women & Families
Nursing Mothers Counsel
Orange County Equality Coalition
Our Family Coalition
Parent Voices California
Poder Latinx
Public Counsel
Reproductive Freedom for All CA
Rising Communities
San Diego County Breastfeeding Coalition
Small Business Majority
TechEquity Collaborative
The Women's Employment Rights Clinic (WERC) at GGU
UAW Local 230

UAW Region 6
United Food and Commercial Workers - Western States Council
UNITE-LA
United Steelworkers District 12
Working Partnerships USA
Worksafe

OPPOSITION: (Verified 8/22/24)

None received

ARGUMENTS IN SUPPORT: According to the sponsors of the measure, “workers who do not have the savings to cover several weeks of expenses without their regular income while waiting for SDI or PFL benefits are less likely to take leave from work when their healthcare provider recommends it, to bond with a new baby, or to care for a sick family member.” They argue that, “earlier access to benefits and confirmation of benefits and benefit rates would empower workers to follow their healthcare provider’s recommendations to take the leave that they need and to plan for their families’ wellbeing. Allowing for early application would also help alleviate stress caused by the current requirement that workers wait until they are in the midst of a significant family or health event to apply for SDI or PFL benefits. It may be unrealistic and unnecessarily difficult for a new parent, for example, to complete paperwork in the first few days home with a newborn, or likewise, for a worker who is recovering from a significant surgery.”

ASSEMBLY FLOOR: 77-0, 8/28/24

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Luz Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas

NO VOTE RECORDED: Cervantes, Ortega

Prepared by: Alma Perez-Schwab / L., P.E. & R. / (916) 651-1556

8/28/24 22:39:39

**** END ****

SENATE THIRD READING

STR Bill Id:SB 1090

Author:(Durazo)

As Amended Ver:August 19, 2024

Majority vote

SUMMARY

Makes changes to the timeframes for the filing of a claim for and the payment of State Disability Insurance (SDI) and Paid Family Leave (PFL) benefits.

Major Provisions

1. Authorizes workers to initiate the claims process for SDI or PFL benefits up to 30 days in advance of the anticipated first compensable day of disability with respect to that claim.
2. Requires the Employment Development Department (EDD) to issue payments for SDI or PFL benefits to eligible claimants within 14 days of receipt of the properly completed claim or as soon as eligibility begins for the claimant, whichever is later.
3. Makes these changes operative when these changes are incorporated in EDD's integrated claims management system as part of the EDD Next project.

COMMENTS

PFL was enacted in 2002 as an expansion to the SDI program to extend disability compensation to individuals who take time off work to care for a seriously ill child, spouse, parent, domestic partner, or to bond with a new minor child. California was the first state in the nation to implement a PFL benefit, with benefit payments beginning on July 1, 2004. Effective January 1, 2021, the PFL scope was expanded to include employees taking time off work to assist a military family member under covered active duty or call to covered active duty.

PFL provides up to eight weeks of the 60-70% wage replacement. Starting January 1, 2025 workers will be eligible for 70-90% wage replacement. According to EDD's SDI Statistical Information, for the first six months of 2022 the average weekly benefit amount was $821.

For both SDI and PFL programs, existing law requires that a claimant wait to apply for benefits until the first day they suffer a wage loss. EDD will then process the application and, barring any issues, is required to issue initial payment of benefits within 14 days of receipt of the properly completed claim. Delays in receipt of benefits can occur if an application contains errors or there is an issue with receipt of the doctor's certification. This bill will allow claimants, when the use of SDI and PFL is foreseeable, to apply up to 30 days prior to the first compensable day of disability and clarifies that benefits must be provided within 14 days or as soon as eligibility begins, whichever is later.

EDD is currently in the middle of an ongoing system modernization effort, EDD Next. In light of this, the provisions of this bill would not become operative until these changes are incorporated in EDD's integrated claims management system as part of the EDD Next project.

According to the Author

[This bill] provides working families with more timely access to Paid Family Leave and State Disability Insurance benefits by allowing workers to pre-apply for these benefits up to 30 days before the start of their leave.

This small change will enable workers to apply before their hands are full with a new baby or they are recovering from major surgery.

It would also provide workers with more economic certainty by allowing them to know whether they qualify for benefits and how much money they will receive before beginning an unpaid leave from work.

Arguments in Support

A coalition of organizations, including the California Work & Family Coalition and Legal Aid at Work write the following in support of this bill:

By allowing workers to apply for these programs up to 30 days in advance of an anticipated leave, SB 1090 will ensure more families in California have access to paid leave. Notably, under California law, workers already may be required to provide their employer with 30 days' notice of an anticipated leave, so early application will also address confusion surrounding the differing standards for providing notice of job-protected leave and applying for SDI or PFL.

SB 1090 is a small but needed change to ensure equitable access to the Paid Family Leave and State Disability Insurance programs. PFL and SDI benefits are what make it possible for workers paid low wages to continue to meet their basic needs like rent, food and medicine while on leave. By allowing workers to apply for PFL or SDI in advance of an anticipated leave, SB 1090 would reduce barriers to accessing these programs, particularly for lower-to-middle income families who, due to the inability to forgo several weeks of income, may currently be prevented from taking leave altogether.

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Assembly Appropriations Committee: "One-time costs of approximately $5.8 million to EDD to update existing technology systems and revise regulations, forms, and public materials; and ongoing costs of approximately $100,000 to EDD for systems support and maintenance (Unemployment Compensation Disability Fund)."

VOTES

SENATE FLOOR: 38-0-2

YES: Alvarado-Gil, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk

ABS, ABST OR NV: Allen, Archuleta

ASM INSURANCE: 15-0-0

YES: Calderon, Chen, Alvarez, Bauer-Kahan, Berman, McKinnor, Lee, Lowenthal, Ortega, Joe Patterson, Petrie-Norris, Blanca Rubio, Valencia, Wallis, Wood

ASM APPROPRIATIONS: 11-0-4

YES: Wicks, Arambula, Bryan, Calderon, Wendy Carrillo, Mike Fong, Grayson, Haney, Hart, Pellerin, Villapudua

ABS, ABST OR NV: Sanchez, Dixon, Jim Patterson, Ta

UPDATED

VERSION: August 19, 2024

CONSULTANT: Claire Wendt / INS. / (916) 319-2086 FN: 0004005

Date of Hearing: August 7, 2024

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

SBPCA Bill Id:SB 1090

Author:(Durazo) – As Amended Ver:May 16, 2024

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill allows a worker to file an earlier claim for benefits under the State Disability Insurance (SDI) and Paid Family Leave (PFL) program.

Specifically, this bill:

1. Allows an individual to file a claim for SDI and PFL benefits up to 30 days prior to the first compensable day.
2. Requires the issuance of an initial payment of SDI and PFL benefits within 14 days of receipt of the claimant’s first claim, or as soon as eligibility begins, whichever is later.
3. Provides that the above-described changes become operative when the next scheduled improvement of the Employment Development Department’s (EDD’s) integrated claims management system is implemented.

FISCAL EFFECT:

One-time costs of approximately $5.8 million to EDD to update existing technology systems and revise regulations, forms, and public materials; and ongoing costs of approximately $100,000 to EDD for systems support and maintenance (Unemployment Compensation Disability Fund).

COMMENTS:

1. Purpose. According to the author:

SB 1090 provides working families with more timely access to [PFL] and [SDI] benefits by allowing workers to pre-apply for these benefits up to 30 days before the start of their leave.

This small change will enable workers to apply before their hands are full with a new baby or they are recovering from major surgery.

It would also provide workers with more economic certainty by allowing them to know whether they qualify for benefits and how much money they will receive before beginning an unpaid leave from work.

This bill is supported by a large coalition of civil rights, workers’ rights, and legal aid groups.

1. SDI and PFL Programs. The SDI program was enacted in 1946 to provide monetary benefits to workers unable to work due to non-work related illness, injury or pregnancy. PFL was enacted in 2002 as an expansion of the SDI program to extend disability compensation to individuals who take time off work to care for a seriously ill child, spouse, parent or domestic partner, or to bond with a new minor child. PFL provides up to eight weeks of 60% to 70% of wage replacement. Beginning January 1, 2025, the range increases to 70% to 90% of wage replacement. According to EDD data covering the first six months of 2022, the average weekly PFL benefit amount was $821. Both programs are financed solely by worker contributions through an employee payroll deduction.

Existing law requires a claimant under the SDI and PFL programs to wait to apply for benefits until the first day the claimant suffers a wage loss. EDD will then process the application and, barring any issues, issue initial payment of benefits within 14 days. However, delays in receipt of benefits may occur if an application contains errors or there is an issue with the claimant’s doctor’s certification. This bill allows a claimant, when use of the SDI and PFL programs is foreseeable, to apply up to 30 days prior to the first compensable day of disability and clarifies that benefits must be provided within 14 days or as soon as eligibility begins, whichever is later. In light of EDD’s ongoing system modernization effort, EDD Next, this bill would not become operative until the next scheduled improvement of EDD’s integrated claims management system is implemented.

1. Related Legislation. AB 2167 (Cervantes) is similar to this bill, but also extends the application and appeal timelines for the SDI and PFL programs. AB 2167 is pending on the Senate Appropriations Committee’s suspense file.

Analysis Prepared by: Irene Ho / APPR. / (916) 319-2081

Date of Hearing: June 26, 2024

ASSEMBLY COMMITTEE ON INSURANCE

Lisa Calderon, Chair

SBPCA Bill Id:SB 1090

Author:(Durazo) – As Amended Ver:May 16, 2024

SENATE VOTE: 38-0

SUBJECT: Unemployment insurance: disability and paid family leave: claim administration

SUMMARY: Makes changes to the timeframes for the filing of a claim for and the payment of State Disability Insurance (SDI) and Paid Family Leave (PFL) benefits. Specifically, this bill:

1. Authorizes workers to file a claim for SDI or PFL benefits up to 30 days in advance of the first compensable day of disability with respect to that claim.
2. Requires the Employment Development Department (EDD) to issue payments for SDI or PFL benefits to eligible claimants within 14 days of receipt of the properly completed claim or as soon as eligibility begins for the claimant, whichever is later.
3. Makes these changes operative when the next scheduled improvement of EDD’s integrated claims management system is implemented.

EXISTING LAW:

1. Establishes EDD to, among other duties, administer the Unemployment Insurance (UI) and SDI programs. (Unemployment Insurance Code Section (UIC) 301)
2. Establishes the SDI program as a partial wage-replacement plan funded through employee payroll deductions that is available through the SDI and PFL programs to eligible individuals. (UIC 2601-3308)
3. Provides, through the SDI program, short-term wage replacement benefits to eligible workers who are unable to work due to a non-work-related illness or injury. SDI benefits can be used for an illness or injury, either physical or mental, which prevents an employee from performing their regular and customary work and includes elective surgery, pregnancy, childbirth, or other medical conditions. (UIC 2601-3308)
4. Establishes the PFL program within the SDI program for the provision of wage replacement benefits for up to eight weeks within a 12-month period to workers for the following reasons:
   1. To care for a seriously ill family member;
   2. To bond with a new child entering the family by birth, adoption, or foster care placement; or,
   3. To participate in a qualifying event because of a spouse, registered domestic partner, parent, or child’s military deployment to a foreign country. (UIC 3301-3303)
5. Requires SDI and PFL claims, accompanied by a certificate on a form furnished by EDD, to be filed no later than the 41st consecutive day following the first compensable day, with the possibility for extensions upon a showing of good cause, as specified. (UIC 2706.1 and 3301)
6. Requires EDD to issue the initial payment for both SDI and PFL benefits to a monetarily eligible claimant who is otherwise determined eligible by EDD under applicable law and regulation within 14 days of receipt of their properly completed claim. (UIC 2701.5 and 3304)

FISCAL EFFECT: Unknown.

COMMENTS:

1. Purpose. According to the author:

SB 1090 provides working families with more timely access to Paid Family Leave and State Disability Insurance benefits by allowing workers to pre-apply for these benefits up to 30 days before the start of their leave.

This small change will enable workers to apply before their hands are full with a new baby or they are recovering from major surgery.

It would also provide workers with more economic certainty by allowing them to know whether they qualify for benefits and how much money they will receive before beginning an unpaid leave from work.

1. Background. PFL was enacted in 2002 as an expansion to the SDI program to extend disability compensation to individuals who take time off work to care for a seriously ill child, spouse, parent, domestic partner, or to bond with a new minor child. California was the first state in the nation to implement a PFL benefit, with benefit payments beginning on July 1, 2004. Effective January 1, 2021, the PFL scope was expanded to include employees taking time off work to assist a military family member under covered active duty or call to covered active duty.

PFL provides up to eight weeks of the 60-70% wage replacement. Starting January 1, 2025 workers will be eligible for 70-90% wage replacement. According to EDD’s SDI Statistical Information, for the first six months of 2022 the average weekly benefit amount was $821.

Many confuse the PFL program (which provides only wage replacement during leave) with the job protection guarantees in the federal Family & Medical Leave Act (FMLA) and the California Family Rights Act (CFRA). However, the changes to PFL benefits in this bill do not affect these job protection laws.

1. Discussion. For both SDI and PFL programs, existing law requires that a claimant wait to apply for benefits until the first day they suffer a wage loss. EDD will then process the application and, barring any issues, is required to issue initial payment of benefits within 14 days of receipt of the properly completed claim. Delays in receipt of benefits can occur if an application contains errors or there is an issue with receipt of the doctor’s certification. This bill will allow claimants, when the use of SDI and PFL is foreseeable, to apply up to 30 days prior to the first compensable day of disability and clarifies that benefits must be provided within 14 days or as soon as eligibility begins, whichever is later.

EDD is currently in the middle of an ongoing system modernization effort, EDD Next. In light of this, the provisions of this bill would not become operative until the next scheduled improvement of EDD’s integrated claims management system is implemented.

1. Related legislation.
   1. AB 2167 (Cervantes) of 2024, extends the timeline for an individual to file a claim for PFL benefits to no later than the 60th consecutive day following the first compensable day as well as authorizing the individual to file that claim up to 60 days before the first compensable day. Pending before the Senate Appropriations Committee.
   2. AB 2123 (Papan) of 2024, deletes the authorization for an employer to require an employee to take two weeks of vacation leave before accessing benefits under the state PFL program. Pending before the Senate Floor.
   3. AB 518 (Wicks) of 2023, expands the definition of “family member” for purposes of the PFL program to allow workers to take time off to care for a seriously ill individual related by blood or whose close association with the employee is the equivalent of a family relationship. On the Senate Inactive File.
2. Prior legislation.
   1. AB 575 (Papan), of 2023, would have made several changes to how individuals can access PFL benefits including expanding the program to allow for bonding with a child for whom they are acting in loco parentis, removing the restriction that only one family member at a time is allowed to access PFL, and deleting the provision allowing an employer to allow an employee to access vacation time prior to using PFL. This bill was vetoed by the Governor.
   2. AB 1041 (Wicks), Chapter 748, Statutes of 2022, expanded the list of individuals for which an employee can take leave under the California Family Rights Act (CFRA) and the Healthy Workplaces, Healthy Families Act of 2014.
   3. SB 951 (Durazo), Chapter 878, Statutes of 2022, revised the formula for the computation of SDI and PFL benefits.
   4. SB 1058 (Durazo), Chapter 317, Statutes of 2022, required EDD to collect demographic data, including race and ethnicity data and sexual orientation and gender identity data, for individuals who claim disability benefits under the SDI and PFL programs.
   5. SB 83 (Committee on Budget and Fiscal Review), Chapter 24, Statutes of 2019, beginning July 1, 2020, extended from six to eight weeks the maximum duration of PFL benefits individuals may receive.
   6. SB 1123 (Jackson), Chapter 849, Statutes of 2018 expanded the PFL program to include time off to participate in a qualifying exigency related to covered active duty, as defined, or call to covered active duty of the individual’s spouse, domestic partner, child, or parent in the armed forces.
   7. SB 63 (Jackson), Chapter 686, Statues of 2017 prohibits an employer from refusing to allow an employee with more than 12 months of service with the employer, who has at least 1,250 hours of service with the employer, and who works at a worksite in which the employer employs at least 20 employees within 75 miles, to take up to 12 weeks of parental leave to bond with a new child.
   8. SB 770 (Jackson), Chapter 350, Statutes of 2013 expanded the definition of family to include in-laws, siblings and grandparents.

REGISTERED SUPPORT / OPPOSITION:

Support

Aaaj- Asian Law Caucus

AARP

Asian Law Alliance

Association of California Caregiver Resource Centers

California Breastfeeding Coalition

California Catholic Conference

California Child Care Resource and Referral Network

California Coalition on Family Caregiving

California Domestic Workers Coalition

California Employment Lawyers Association

California Federation Business and Professional Women

California Partnership to End Domestic Violence

California Wic Association

California Work & Family Coalition

Californians for Safety and Justice

Caring Across Generations

Center for Workers' Rights

Child Care Law Center

Citizens for Choice

Courage California

Electric Universe

Equal Rights Advocates

Equality California

Evolve California

Family Caregiver Alliance (FCA)

First 5 Association of California

First 5 California

Food Empowerment Project

Friends Committee on Legislation of California

Grace - End Child Poverty in California

Human Impact Partners

Jewish Center for Justice

LA Alliance for A New Economy

LA Best Babies Network

Legal Aid At Work

Lutheran Office of Public Policy - California

Mujeres Unidas Y Activas

National Council of Jewish Women CA

National Council of Jewish Women Los Angeles

National Health Law Program

National Partnership for Women & Families

Nursing Mothers Counsel

Orange County Equality Coalition

Our Family Coalition

Parent Voices California

Poder Latinx

Public Counsel

Reproductive Freedom for All CA

Rising Communities

San Diego County Breastfeeding Coalition

Small Business Majority

Techequity Collaborative

The Women's Employment Rights Clinic (WERC) At Ggu

UAW Local 230

UAW Region 6

Ufcw - Western States Council

Unite-la

United Steelworkers District 12

Working Partnerships USA

Worksafe

Opposition

None on file.

Analysis Prepared by: Claire Wendt / INS. / (916) 319-2086

 THIRD READING  

Bill No: SB 1090

Author: Durazo (D), et al.

Amended: 5/16/24

Vote: 21

SENATE LABOR, PUB. EMP. & RET. COMMITTEE: 5-0, 4/24/24

AYES: Smallwood-Cuevas, Wilk, Cortese, Durazo, Laird

SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/16/24

AYES: Caballero, Jones, Ashby, Becker, Bradford, Seyarto, Wahab

SUBJECT: Unemployment insurance: disability and paid family leave: claim administration

SOURCE: California Work & Family Coalition

Legal Aid at Work

DIGEST:

This bill authorizes workers to file a claim for State Disability Insurance (SDI) or Paid Family Leave (PFL) benefits up to 30 days in advance of the first compensable day of disability and requires the Employment Development Department (EDD) to issue payment on those claims within 14 days of receipt (per existing law) or as soon as eligibility begins for the claimant, whichever is later.

ANALYSIS:

Existing law:

1. Establishes the Employment Development Department (EDD) to, among other duties, administer the Unemployment Insurance and Disability Insurance programs. (Unemployment Insurance Code §301)
2. Establishes the State Disability Insurance program as a partial wage-replacement plan funded through employee payroll deductions that is available through the Disability Insurance and Paid Family Leave programs to eligible individuals. (Unemployment Insurance Code §2601-3308)
3. Provides, through the State Disability Insurance (SDI) program, short-term wage replacement benefits to eligible workers who are unable to work due to a non-work-related illness or injury. SDI benefits can be used for an illness or injury, either physical or mental, which prevents an employee from performing their regular and customary work and includes elective surgery, pregnancy, childbirth, or other medical conditions. (Unemployment Insurance Code §2601-3308)
4. Provides, through the Paid Family Leave (PFL) program, eligible employees up to eight weeks of wage replacement benefits within a 12-month period to workers who need to take time off work for the following reasons:
   1. To care for a seriously ill child, spouse, parent, grandparent, grandchild, sibling, or domestic partner;
   2. To bond with a minor child within one year of the birth or placement of the child in connection with foster care or adoption;
   3. To participate in a qualifying event because of a family member’s military deployment. (Unemployment Insurance Code §3301)
5. Requires an SDI and PFL claim, accompanied by a certificate on a form furnished by EDD, to be filed no later than the 41st consecutive day following the first compensable day, with the possibility for extensions upon a showing of good cause, as specified. (Unemployment Insurance Code §2706.1 and §3301)
6. Requires EDD to issue the initial payment for both SDI and PFL benefits to a monetarily eligible claimant who is otherwise determined eligible by the department under applicable law and regulation within 14 days of receipt of their properly completed claim. (Unemployment Insurance Code §2701.5 and §3304)

This bill:

1. Authorizes workers to file a claim for SDI or PFL benefits up to 30 days in advance of the first compensable day of disability with respect to that claim.
2. Requires EDD to issue payments for SDI or PFL benefits to eligible claimants within 14 days of receipt of the properly completed claim (existing law) or as soon as eligibility begins for the claimant, whichever is later.
3. Makes these changes operative when the next scheduled improvement of EDD’s integrated claims management system is implemented.

Background

The State Disability Insurance (SDI) program, administered by the EDD, was created in 1946 to provide monetary benefits to workers unable to work due to non-work-related illness, injury, or pregnancy. Benefits are payable for a maximum of 52 weeks and provide a wage replacement of about 60-70 percent. The SDI program is financed solely by worker contributions and covers approximately 18 million individuals.

In 2004, California was the first state in the nation to implement a Paid Family Leave program (administered as part of SDI) that provides benefits to workers who need to take time off to care for a seriously ill family member, or to bond with a new child either from birth, adoption, or foster care placement. Effective January 1, 2021, the PFL scope was expanded to include employees taking time off work to assist a military family member under covered active duty or call to covered active duty. PFL provides up to eight weeks of the 60-70 percent wage replacement.

In 2022, SB 951 (Durazo) was adopted to, among other things, for claims commencing on or after January 1, 2025, revise the formula for determining benefits under both the SDI and PFL programs to provide an increased wage replacement rate ranging from 70-90 percent based on the individual’s wages.

Need for this bill? For both SDI and PFL programs, existing law requires that a claimant wait to apply for benefits until the first day they suffer a wage loss. EDD will then process the application and, barring any issues, is required to issue initial payment of benefits within 14 days of receipt of the properly completed claim. Delays in receipt of benefits can occur if an application contains errors or there is an issue with receipt of the doctor’s certification. This bill will allow claimants, when the use of SDI and PFL is foreseeable, to apply up to 30 days prior to the first compensable day of disability and clarifies that benefits must be provided within 14 days or as soon as eligibility begins, whichever is later.

According to the author, “even if nothing goes wrong with the claims process, asking a worker to wait to apply for the benefit until their hands are full with a new baby or they are recovering from major surgery is unnecessarily burdensome. This can result in an overwhelmed or incapacitated worker delaying their application for benefits for several days or weeks, which in turn pushes receipt of their benefits further out.”

The author additionally states that, “this small change would enable workers to apply before they are in the midst of a significant health or caregiving need. It would also provide workers with more economic certainty by allowing them to know whether they qualify for benefits and how much money they will receive before beginning an unpaid leave from work. Finally, it would make PFL and SDI more accessible to lower-to-middle income families by decreasing the wait to receive their benefits.”

Related/Prior Legislation

AB 2123 (Papan, 2024) deletes the authorization for an employer to require an employee to take two weeks of vacation leave before accessing benefits under the PFL program.

AB 2167 (Cervantes, 2024) makes several changes to the PFL program to, among other things, extend the timeline for an individual to file a claim for PFL benefits to no later than the 60th consecutive day following the first compensable day as well as authorizing the individual to file that claim up to 60 days before the first compensable day, as provided.

AB 518 (Wicks, 2023) would have expanded eligibility for benefits under the PFL program to include individuals who take time off work to care for a seriously ill designated person.

AB 575 (Papan, 2023) would have expanded eligibility for the PFL program to provide benefits to workers who take time off work to bond with a minor child within one year of assuming responsibilities of a child in loco parentis, as defined. Additionally, this bill would have deleted (1) the restriction in law specifying that an individual is not eligible for PFL benefits if another family member is ready, willing, and able and available to provide the required care, and (2) the authorization for an employer to require an employee to take two weeks of vacation leave before accessing PFL benefits that are funded by employees.

SB 951 (Durazo, Chapter 878, Statutes of 2022), revised the formula for the computation of SDI and PFL benefits to increase the wage replacement available to claimants.

SB 1058 (Durazo, Chapter 317, Statutes of 2022), required EDD to collect demographic data, including race and ethnicity data and sexual orientation and gender identity data, for individuals who claim disability benefits under the SDI and PFL programs.

AB 1041 (Wicks, Chapter 748, Statutes of 2022), expanded the list of individuals for which an employee can take leave under the California Family Rights Act and the Healthy Workplaces, Healthy Families Act of 2014 to include a designated person.

SB 83 (Committee on Budget and Fiscal Review, Chapter 24, Statutes of 2019), beginning July 1, 2020, extended from six to eight weeks the maximum duration of PFL benefits individuals may receive.

SB 1123 (Jackson, Chapter 849, Statutes of 2018) expanded the PFL program to include time off to participate in a qualifying exigency related to covered active duty, as defined, or call to covered active duty of the individual’s spouse, domestic partner, child, or parent in the armed forces.

SB 770 (Jackson, Chapter 350, Statutes of 2013) expanded the definition of family to include in-laws, siblings and grandparents.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

According to the Senate Appropriations Committee:

Costs to EDD have yet to be determined, but could potentially be in the hundreds of thousands of dollars annually (Unemployment Compensation Disability Insurance Fund).

SUPPORT: (Verified 5/16/24)

California Work & Family Coalition (co-source)

Legal Aid at Work (co-source)

AAAJ - Asian Law Caucus
AARP
Alzheimer’s Association California
Alzheimer's Greater Los Angeles
Alzheimer's Orange County
Alzheimer's San Diego

American Federation of State, County and Municipal Employees
Asian Law Alliance

Association of California Caregiver Resource Centers
BreastfeedLA
California Breastfeeding Coalition
California Catholic Conference
California Child Care Resource and Referral Network
California Coalition on Family Caregiving
California Domestic Workers Coalition
California Employment Lawyers Association
California Federation Business and Professional Women
California Labor Federation
California Partnership to End Domestic Violence
California Teachers Association
California WIC Association
Californians for Safety and Justice
Caring Across Generations
Center for Workers' Rights
Child Care Law Center
Citizens for Choice
Courage California
Electric Universe
Equal Rights Advocates
Equality California
Evolve California
Family Caregiver Alliance

First 5 Association of California

First 5 California
Food Empowerment Project
Friends Committee on Legislation of California
GRACE/End Child Poverty in California
Human Impact Partners
Jewish Center for Justice
LA Alliance for A New Economy
LA Best Babies Network
Lutheran Office of Public Policy - California
Mujeres Unidas Y Activas
National Council of Jewish Women CA
National Council of Jewish Women Los Angeles

National Health Law Program
National Partnership for Women & Families
Nursing Mothers Counsel
Orange County Equality Coalition
Our Family Coalition
Parent Voices California
Poder Latinx
Public Counsel
Reproductive Freedom for All CA
Rising Communities
San Diego County Breastfeeding Coalition
Small Business Majority
Tech Equity
The Women's Employment Rights Clinic (WERC) at GGU
UAW Local 230
United Food and Commercial Workers - Western States Council
UNITE-LA
United Steelworkers District 12
Working Partnerships USA
Worksafe

OPPOSITION: (Verified 5/16/24)

None received

ARGUMENTS IN SUPPORT: According to the sponsors of the measure, “workers who do not have the savings to cover several weeks of expenses without their regular income while waiting for SDI or PFL benefits are less likely to take leave from work when their healthcare provider recommends it, to bond with a new baby, or to care for a sick family member.” They argue that, “earlier access to benefits and confirmation of benefits and benefit rates would empower workers to follow their healthcare provider’s recommendations to take the leave that they need and to plan for their families’ wellbeing. Allowing for early application would also help alleviate stress caused by the current requirement that workers wait until they are in the midst of a significant family or health event to apply for SDI or PFL benefits. It may be unrealistic and unnecessarily difficult for a new parent, for

example, to complete paperwork in the first few days home with a newborn, or likewise, for a worker who is recovering from a significant surgery.”

Prepared by: Alma Perez-Schwab / L., P.E. & R. / (916) 651-1556

5/18/24 14:48:48

**** END ****

SENATE COMMITTEE ON

Senator Anna Caballero, Chair

2023 - 2024 Regular Session

SB 1090 (Durazo) - Unemployment insurance: disability and paid family leave: claim administration

Bill Summary:

SB 1090 would (1) authorize workers to file a claim for State Disability Insurance (SDI) or Paid Family Leave (PFL) benefits up to 30 days in advance of the first compensable day of disability, and (2) require the Employment Development Department (EDD) to issue payment on those claims within 14 days of receipt (as per existing law) or as soon as eligibility begins for the claimant, whichever is later.

*********** ANALYSIS ADDENDUM – SUSPENSE FILE ***********

The following information is revised to reflect amendments

adopted by the committee on May 16, 2024

Fiscal Impact:

Costs to EDD have yet to be determined, but could potentially be in the hundreds of thousands of dollars annually (Unemployment Compensation Disability Insurance Fund).

Author Amendments:

Delay the operative date until the next scheduled improvement of EDD’s integrated claims management system is implemented.

-- END --

SENATE COMMITTEE ON

Senator Anna Caballero, Chair

2023 - 2024 Regular Session

SB 1090 (Durazo) - Unemployment insurance: disability and paid family leave: claim administration

Bill Summary:

SB 1090 would (1) authorize workers to file a claim for State Disability Insurance (SDI) or Paid Family Leave (PFL) benefits up to 30 days in advance of the first compensable day of disability, and (2) require the Employment Development Department (EDD) to issue payment on those claims within 14 days of receipt (as per existing law) or as soon as eligibility begins for the claimant, whichever is later.

Fiscal Impact:

EDD indicates that it would incur one-time information technology costs of $5.8 million, and ongoing administrative costs of $100,000, to implement the provisions of the bill (Unemployment Compensation Disability Insurance Fund).

Background:

The SDI program, administered by EDD, was created in 1946 to provide monetary benefits to workers unable to work due to non-work-related illness, injury, or pregnancy. Benefits are payable for a maximum of 52 weeks and provide a wage replacement of about 60-70 percent. The SDI program is financed solely by worker contributions and covers approximately 18 million individuals.

In 2004, California was the first state in the nation to implement a PFL (administered as part of SDI) that provides benefits to workers who need to take time off to care for a seriously ill family member, or to bond with a new child either from birth, adoption, or foster care placement. FPL eligibility has been expanded several times in the ensuing years.

For both SDI and PFL programs, current law requires that a claimant wait to apply for benefits until the first day they suffer a wage loss. EDD will then process the application and, barring any issues, is required to issue initial payment of benefits within 14 days of receipt of the properly completed claim. Delays in receipt of benefits can occur if an application contains errors or there is an issue with receipt of the doctor’s certification.

Proposed Law:

This bill would do the following

• Authorize workers to file a claim for SDI or PFL benefits up to 30 days in advance of the first compensable day of disability with respect to that claim.
• Require EDD to issue payments for SDI or PFL benefits to eligible claimants within 14 days of receipt of the properly completed claim (existing law) or as soon as eligibility begins for the claimant, whichever is later.
• Make these changes operative when the next scheduled improvement of EDD’s integrated claims management system is implemented, or on January 1, 2028, whichever is earlier.

Related Legislation:

• AB 2123 (Papan) would delete the authorization for an employer to require an employee to take two weeks of vacation leave before accessing benefits under the PFL program. The bill is currently pending on the Assembly Floor.
• AB 2167 (Cervantes) would make several changes to the PFL program to, among other things, extend the timeline for an individual to file a claim for PFL benefits to no later than the 60th consecutive day following the first compensable day as well as authorizing the individual to file that claim up to 60 days before the first compensable day, as provided. The bill is currently pending in the Assembly Appropriations Committee.
• AB 518 (Wicks, 2023) would have expanded eligibility for benefits under the PFL program to include individuals who take time off work to care for a seriously ill designated person. The bill is currently pending on the Senate inactive file.
• AB 575 (Papan, 2023) would have expanded eligibility for the PFL program to provide benefits to workers who take time off work to bond with a minor child within one year of assuming responsibilities of a child in loco parentis, as defined. Additionally, this bill would have deleted (1) the restriction in law specifying that an individual is not eligible for PFL benefits if another family member is ready, willing, and able and available to provide the required care, and (2) the authorization for an employer to require an employee to take two weeks of vacation leave before accessing PFL benefits that are funded by employees. The bill was vetoed by the Governor.
• SB 951 (Durazo, Chapter 878, Statutes of 2022), revised the formula for the computation of SDI and PFL benefits to increase the wage replacement available to claimants.
• SB 1058 (Durazo, Chapter 317, Statutes of 2022), required EDD to collect demographic data, including race and ethnicity data and sexual orientation and gender identity data, for individuals who claim disability benefits under the SDI and PFL programs.
• AB 1041 (Wicks, Chapter 748, Statutes of 2022), expanded the list of individuals for which an employee can take leave under the California Family Rights Act and the Healthy Workplaces, Healthy Families Act of 2014 to include a designated person.
• SB 83 (Committee on Budget and Fiscal Review, Chapter 24, Statutes of 2019), beginning July 1, 2020, extended from six to eight weeks the maximum duration of PFL benefits individuals may receive.
• SB 1123 (Jackson, Chapter 849, Statutes of 2018) expanded the PFL program to include time off to participate in a qualifying exigency related to covered active duty, as defined, or call to covered active duty of the individual’s spouse, domestic partner, child, or parent in the armed forces.
• SB 770 (Jackson, Chapter 350, Statutes of 2013) expanded the definition of family to include in-laws, siblings and grandparents.

Staff Comments:

As noted above, this bill would (1) allow claimants, when the use of SDI and PFL is foreseeable, to apply up to 30 days prior to the first compensable day of disability, and (2) clarify that benefits must be provided within 14 days or as soon as eligibility begins, whichever is later. EDD indicates that it would incur costs to update existing technology systems, revise regulations, and update impacted forms and public facing content. The Department notes that the provisions of this bill could be implemented at a later date (past January 1, 2028) via EDD’s modernization project, EDDNext, at a reduced cost.

-- END --

SENATE COMMITTEE ON LABOR, PUBLIC EMPLOYMENT AND RETIREMENT

Senator Lola Smallwood-Cuevas, Chair

2023 - 2024 Regular

Bill No: SB 1090 Hearing Date: April 24, 2024

SUBJECT: Unemployment insurance: disability and paid family leave: claim administration

KEY ISSUE

This bill authorizes workers to file a claim for State Disability Insurance (SDI) or Paid Family Leave (PFL) benefits up to 30 days in advance of the first compensable day of disability and requires the Employment Development Department (EDD) to issue payment on those claims within 14 days of receipt (as per existing law) or as soon as eligibility begins for the claimant, whichever is later.

ANALYSIS

Existing law:

1. Establishes the Employment Development Department (EDD) to, among other duties, administer the Unemployment Insurance and Disability Insurance programs. (Unemployment Insurance Code §301)
2. Establishes the State Disability Insurance program as a partial wage-replacement plan funded through employee payroll deductions that is available through the Disability Insurance and Paid Family Leave programs to eligible individuals. (Unemployment Insurance Code §2601-3308)
3. Provides, through the State Disability Insurance (SDI) program, short-term wage replacement benefits to eligible workers who are unable to work due to a non-work-related illness or injury. SDI benefits can be used for an illness or injury, either physical or mental, which prevents an employee from performing their regular and customary work and includes elective surgery, pregnancy, childbirth, or other medical conditions. (Unemployment Insurance Code §2601-3308)
4. Provides, through the Paid Family Leave (PFL) program, eligible employees up to eight weeks of wage replacement benefits within a 12-month period to workers who need to take time off work for the following reasons:
   1. To care for a seriously ill child, spouse, parent, grandparent, grandchild, sibling, or domestic partner;
   2. To bond with a minor child within one year of the birth or placement of the child in connection with foster care or adoption;
   3. To participate in a qualifying event because of a family member’s military deployment. (Unemployment Insurance Code §3301)
5. Requires an SDI and PFL claim, accompanied by a certificate on a form furnished by EDD, to be filed no later than the 41st consecutive day following the first compensable day, with the possibility for extensions upon a showing of good cause, as specified. (Unemployment Insurance Code §2706.1 and §3301)
6. Requires EDD to issue the initial payment for both SDI and PFL benefits to a monetarily eligible claimant who is otherwise determined eligible by the department under applicable law and regulation within 14 days of receipt of their properly completed claim. (Unemployment Insurance Code §2701.5 and §3304)

This bill:

1. Authorizes workers to file a claim for SDI or PFL benefits up to 30 days in advance of the first compensable day of disability with respect to that claim.
2. Requires EDD to issue payments for SDI or PFL benefits to eligible claimants within 14 days of receipt of the properly completed claim (existing law) or as soon as eligibility begins for the claimant, whichever is later.
3. Makes these changes operative when the next scheduled improvement of EDD’s integrated claims management system is implemented, or on January 1, 2028, whichever is earlier.

COMMENTS

1. Background:

The State Disability Insurance (SDI) program, administered by the EDD, was created in 1946 to provide monetary benefits to workers unable to work due to non-work-related illness, injury, or pregnancy. Benefits are payable for a maximum of 52 weeks and provide a wage replacement of about 60-70 percent. The SDI program is financed solely by worker contributions and covers approximately 18 million individuals.

In 2004, California was the first state in the nation to implement a Paid Family Leave program (administered as part of SDI) that provides benefits to workers who need to take time off to care for a seriously ill family member, or to bond with a new child either from birth, adoption, or foster care placement. Effective January 1, 2021, the PFL scope was expanded to include employees taking time off work to assist a military family member under covered active duty or call to covered active duty. PFL provides up to eight weeks of the 60-70 percent wage replacement.

In 2022, SB 951 (Durazo) was adopted to, among other things, for claims commencing on or after January 1, 2025, revise the formula for determining benefits under both the SDI and PFL programs to provide an increased wage replacement rate ranging from 70-90 percent based on the individual’s wages.

2. Need for this bill?

For both SDI and PFL programs, existing law requires that a claimant wait to apply for benefits until the first day they suffer a wage loss. EDD will then process the application and, barring any issues, is required to issue initial payment of benefits within 14 days of receipt of the properly completed claim. Delays in receipt of benefits can occur if an application contains errors or there is an issue with receipt of the doctor’s certification. This bill will allow claimants, when the use of SDI and PFL is foreseeable, to apply up to 30 days prior to the first compensable day of disability and clarifies that benefits must be provided within 14 days or as soon as eligibility begins, whichever is later.

According to the author, “even if nothing goes wrong with the claims process, asking a worker to wait to apply for the benefit until their hands are full with a new baby or they are recovering from major surgery is unnecessarily burdensome. This can result in an overwhelmed or incapacitated worker delaying their application for benefits for several days or weeks, which in turn pushes receipt of their benefits further out.”

The author additionally states that, “this small change would enable workers to apply before they are in the midst of a significant health or caregiving need. It would also provide workers with more economic certainty by allowing them to know whether they qualify for benefits and how much money they will receive before beginning an unpaid leave from work. Finally, it would make PFL and SDI more accessible to lower-to-middle income families by decreasing the wait to receive their benefits.”

3. Proponent Arguments:

According to the sponsors of the measure, Legal Aid at Work and the California Work & Family Coalition, “paid leave is proven to benefit families and communities by improving long-term health outcomes for mothers and children, decreasing stress for caregivers and new parents, encouraging equitable co-parenting, and reducing income volatility.” They argue that, “for workers with lower incomes – who disproportionately identify as women, are born outside of the United States, and are Black or Latinx – missing several weeks of wages prior to confirmation of benefits is not an option. Indeed, for Black households in the Los Angeles area, the median value of liquid assets is $200. For Mexican and Latinxe-non-Mexican households it is $0 and $7 respectively. Workers who do not have the savings to cover several weeks of expenses without their regular income while waiting for SDI or PFL benefits are less likely to take leave from work when their healthcare provider recommends it, to bond with a new baby, or to care for a sick family member.”

Furthermore, they argue, “for pregnant workers, especially Black and Latina women, the inability to take leave may contribute to serious health consequences, including postpartum depressive symptoms. Earlier access to benefits and confirmation of benefits and benefit rates would empower workers to follow their healthcare provider’s recommendations to take the leave that they need and to plan for their families’ wellbeing. Allowing for early application would also help alleviate stress caused by the current requirement that workers wait until they are in the midst of a significant family or health event to apply for SDI or PFL benefits. It may be unrealistic and unnecessarily difficult for a new parent, for example, to complete paperwork in the first few days home with a newborn, or likewise, for a worker who is recovering from a significant surgery.”

4. Opponent Arguments:

None received.

5. Prior/Related Legislation:

AB 2123 (Papan, 2024) would delete the authorization for an employer to require an employee to take two weeks of vacation leave before accessing benefits under the PFL program. AB 2123 is pending on the Assembly floor.

AB 2167 (Cervantes, 2024) would make several changes to the PFL program to, among other things, extend the timeline for an individual to file a claim for PFL benefits to no later than the 60th consecutive day following the first compensable day as well as authorizing the individual to file that claim up to 60 days before the first compensable day, as provided. AB 2167 is pending in Assembly Appropriations Committee.

AB 518 (Wicks, 2023) would have expanded eligibility for benefits under the PFL program to include individuals who take time off work to care for a seriously ill designated person. AB 518 is pending on the Senate inactive file.

AB 575 (Papan, 2023, Vetoed) would have expanded eligibility for the PFL program to provide benefits to workers who take time off work to bond with a minor child within one year of assuming responsibilities of a child in loco parentis, as defined. Additionally, this bill would have deleted (1) the restriction in law specifying that an individual is not eligible for PFL benefits if another family member is ready, willing, and able and available to provide the required care, and (2) the authorization for an employer to require an employee to take two weeks of vacation leave before accessing PFL benefits that are funded by employees.

SB 951 (Durazo, Chapter 878, Statutes of 2022), revised the formula for the computation of SDI and PFL benefits to increase the wage replacement available to claimants.

SB 1058 (Durazo, Chapter 317, Statutes of 2022), required EDD to collect demographic data, including race and ethnicity data and sexual orientation and gender identity data, for individuals who claim disability benefits under the SDI and PFL programs.

AB 1041 (Wicks, Chapter 748, Statutes of 2022), expanded the list of individuals for which an employee can take leave under the California Family Rights Act and the Healthy Workplaces, Healthy Families Act of 2014 to include a designated person.

SB 83 (Committee on Budget and Fiscal Review, Chapter 24, Statutes of 2019), beginning July 1, 2020, extended from six to eight weeks the maximum duration of PFL benefits individuals may receive.

SB 1123 (Jackson, Chapter 849, Statutes of 2018) expanded the PFL program to include time off to participate in a qualifying exigency related to covered active duty, as defined, or call to covered active duty of the individual’s spouse, domestic partner, child, or parent in the armed forces.

SB 770 (Jackson, Chapter 350, Statutes of 2013) expanded the definition of family to include in-laws, siblings and grandparents.

SUPPORT

California Work & Family Coalition (Co-Sponsor)

AAAJ - Asian Law Caucus
AARP
AFSCME CA
Alzheimer's Greater Los Angeles
Alzheimer's Orange County
Alzheimer's San Diego
Asian Law Alliance
Breastfeedla
California Breastfeeding Coalition
California Catholic Conference
California Child Care Resource and Referral Network
California Coalition on Family Caregiving
California Domestic Workers Coalition
California Employment Lawyers Association
California Federation Business and Professional Women
California Labor Federation, Afl-cio
California Partnership to End Domestic Violence
California Teachers Association
California Wic Association
Californians for Safety and Justice
Caring Across Generations
Center for Workers' Rights
Child Care Law Center
Citizens for Choice
Courage California
Courage Campaign
Electric Universe
Equal Rights Advocates
Equality California
Evolve California
Family Caregiver Alliance (FCA)
First 5 Association of California
Friends Committee on Legislation of California
Grace - End Child Poverty in California
Human Impact Partners
Jewish Center for Justice
LA Alliance for A New Economy
LA Best Babies Network
Legal Aid At Work
Lutheran Office of Public Policy - California
Mujeres Unidas Y Activas
National Council of Jewish Women CA
National Council of Jewish Women Los Angeles
National Council of Jewish Women - California
National Partnership for Women & Families
Nursing Mothers Counsel
Orange County Equality Coalition
Our Family Coalition
Parent Voices California
Poder Latinx
Public Counsel
Reproductive Freedom for All CA
Rising Communities
San Diego County Breastfeeding Coalition
Small Business Majority
Tech Equity
The Women's Employment Rights Clinic (WERC) at GGU
UAW 230
UFCW - Western States Council
Unite-LA
United Steelworkers District 12
Working Partnerships USA
Worksafe

OPPOSITION

None received

-- END --