By Barri Friedland, Slovak Baron Empey Murphy & Pinkney, LLP
California has been at the forefront in establishing paid family leave (PFL) programs, and with three notable new bills signed into law, employers need to prepare for significant changes taking effect in 2025.
Paid family leave laws are social insurance models where employees, and sometimes employers, contribute through payroll taxes to a state fund that provides partial wage replacement for individuals who take leave for specified reasons. This is distinct from unpaid statutory leave under the federal Family and Medical Leave Act (FMLA) and the California Family Rights Act (CFRA), which offer job protection but no wage replacement.
Since launching its PFL program in 2004, California has continued to update and expand it. The three new bills addressed in this article – Assembly Bill 2123, Assembly Bill 2499, and Senate Bill 1090 – introduce critical updates to benefit both employees and employers.
Assembly Bill 2123 (Papan): Changes to Vacation Time Use Before PFL
Current Law
Before AB 2123, employers could require employees to use up to two weeks of vacation time before receiving PFL benefits. This policy helped employers manage the costs of paid leave, especially for long absences and reduced the amount the state needed to pay in PFL benefits.
What AB 2123 Changes
Effective January 1, 2025, employers can no longer require employees to use vacation time before accessing PFL benefits. The previous rule offered benefits for both employers and the state. Employers often preferred that employees use vacation time first, as it minimized potential conflicts with workers seeking to use vacation shortly after returning from PFL. It also ensured that employees could maintain benefits contributions while on leave, as their paychecks could still deduct contributions.
Removing this requirement will provide more flexibility for employees but may create challenges for employers. For example, when employees are on unpaid leave, employers will need to manage health insurance contributions without the benefit of payroll deductions. Some employers may need to seek reimbursement from employees for health insurance premiums upon their return or set up alternate payment arrangements during the leave period.
Assembly Bill 2499 (Schiavo): The “Victims” Time Off Law
AB 2499 expands the list of reasons employees can take PFL by enhancing protections for victims of violence and abuse. This bill shifts the enforcement of time-off rights for victims from the Labor Code to the California Fair Employment and Housing Act (FEHA), giving enforcement authority to the Civil Rights Department (CRD).
Current Law
Under existing law, employers with 25 or more employees cannot fire or retaliate against workers for taking time off due to domestic violence, sexual assault, or stalking. These employees are entitled to time off for medical attention, safety planning, court appearances, and other related needs. Employers must also provide reasonable accommodation for these workers.
Changes in AB 2499
AB 2499 redefines "victim" as anyone subjected to a “qualifying act of violence.” It extends the scope of reasons for taking time off, including helping a family member who has been a victim. Employees can take leave for medical care, relocation, housing modifications, enrolling children in new schools, and even technology changes that improve safety.
Employers must receive reasonable advance notice for certain leaves, unless such notice is not feasible, but employees are not entitled to take more unpaid leave than the FMLA allows. Additionally, the law requires victim leave to run concurrently with FMLA/CFRA leave if applicable.
AB 2499 further expands eligibility for reasonable accommodations, making it available to employees whose family members have been victims. Employers are required to engage in a good-faith interactive process to determine accommodations that address the safety concerns of these workers.
Employers must now provide written notice to new employees upon hire, annual written notice to all employees regarding their rights to victim time off, notice when requested, or when an employee discloses that they or a family member is a victim. The CRD will post a form by July 1, 2025, to help employers comply with these requirements.
Senate Bill 1090 (Durazo): Streamlining PFL and SDI Benefits
SB 1090 simplifies the process for applying for PFL and state disability insurance (SDI) benefits, making it easier for employees to receive payments promptly.
Current Law
Employees cannot file for PFL or SDI benefits until their first day of unpaid leave. As a result, it often takes weeks for workers to receive their first benefit payment, as claims are processed after the leave begins.
Changes in SB 1090
SB 1090 allows workers to submit the paperwork for PFL and SDI up to 30 days before they begin their leave. This preemptive filing can reduce delays in receiving benefits, as the Employment Development Department (EDD) will have more time to process claims before the leave starts. Employees will still be required to file a claim no later than 41 days after their first compensable day of leave, but with the option to submit documents in advance, the wait time for payment will likely be shortened.
The new law maintains the requirement that benefits are issued within 14 days of receiving a properly completed claim or as soon as the claimant becomes eligible, whichever comes later. This change is a direct response to the confusion and stress experienced by employees who have previously faced delays in receiving wage replacement while on leave.
These changes, and others outlined in SB 1090, become operative when incorporated in the Employment Development Department’s integrated claims management system as part of the EDDNext project.
Conclusion: Preparing for 2025
Employers in California must adjust their policies to comply with these new laws before they take effect in 2025. AB 2123’s removal of the vacation time requirement, AB 2499’s expanded protections for victims of violence, and SB 1090’s streamlined claims process for PFL and SDI will significantly impact employees and employers. By preparing early, special districts can ensure a smooth transition while continuing to support their workforce through paid leave benefits.
Communication is provided for general information only and is not offered or intended as legal advice. Readers should seek the advice of an attorney when confronted with legal issues and attorneys should perform an independent evaluation of the issues raised in these communications.
Take a look back at previous parts of the 2025 New Laws Series in CSDA eNews for more in-depth overviews of new laws affecting special districts:
Missed Part 6? Read it now: Increasing Bid Thresholds Through CUPCCAA (AB 2192)
Missed Part 5? Read it now: Development Related Fees: Changes to Preliminary Estimate and Collection Provisions
Missed Part 4? Read it now: New Laws Impacting Proposition 218
Missed Part 3? Read it now: The Brown Act: Clarification of the Standards for Remote Meetings and an Expanded Ground for Closed Session; New Attorney General Guidances
Missed Part 2? Read it now: Assembly Bill 2561 (McKinnor): All Local Agencies Must Present Status of Job Vacancies at a Public Hearing
Missed Part 1? Read it now: Public Officials May Not Block Commenters from Official Social Media Accounts and Posts
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