California may soon let workers apply early for paid family leave

California Gov. Gavin Newsom is weighing whether to sign a bill that would allow workers to submit paperwork for the state’s paid family leave program before they begin missing work.

Currently, employees in California can’t apply for paid family leave or short term disability benefits until their first day of unpaid leave. That means people can go weeks without getting payment from the state as they wait for their claims to be approved and then processed.

How it works now

Often, workers don’t immediately submit their paperwork on the first day of leave — or there can be delays due to additional paperwork requirements, said Katherine Wutchiett, senior staff attorney at Legal Aid at Work.

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“You’re recovering from surgery, or maybe you're bonding with a new baby, or your time is busy taking care of a loved one that has a serious health condition, so it's not an ideal time to be interacting with state agencies and working on a difficult application,” she said.

The state’s paid family leave program issues 60% to 70% of a worker’s income during leave to care for a child or a sick family member. (That payment will change to 70% to 90% in January). The state’s Employment Development Department (EDD) says most payments are issued within 14 days after they receive a properly submitted claim.

The new legislation would allow applicants to apply 30 days ahead of their anticipated leave, and requires that benefits must be provided within 14 days, or as soon as leave begins, whichever is later.

Why the legislation could help

Wutchiett said she’s had moms call her agency’s helpline who have been hesitant to go on unpaid leave without knowing exactly when and how much they will be paid.

“I think right now it's kind of a leap of faith,” she said. “If you don't have money saved up, that makes having to wait with no money more scary of a proposition.”

Lower-income workers in California have been found to take leave at a rate lower than high-wage workers. In 2020, employees making $80,000 to $100,000 were using paid family leave benefits at nearly four times the rate of workers making less than $20,000, according to a California Budget & Policy Center report.

Out of 14 states that offer or will soon offer paid family leave benefits, eight of them, including Colorado and Oregon, let workers apply in advance of their leave.

Employers in California can require workers to provide at least 30 days notice before going on paid family leave. Wutchiett said this legislation would allow workers to coordinate paperwork with the state around the same time.

“As it's set up right now, it's confusing for people who want to get ahead of things and take care of their leaves so that they can focus on their health, because they can give their employer notice, but they have to wait and apply for their benefits with the EDD later on,” she said. “This would allow people to do those things at one time to make it more straightforward.”

The bill passed unanimously in the state legislature; 77-0 in the state Assembly and 44-0 in the state Senate.

Want to weigh in?

The governor has until Sept. 30 to sign or veto the bill.

Newsom's office has an online form that allows you to leave a comment.

Select SB 1090: Unemployment insurance: disability and paid family leave: claim administration. (Tip: The dropdown takes a while to scroll through, but if you type "SB 1090" into the box — it'll show up.)