California Continues to Lead on Supporting Working Families

California Work & Family Coalition 

For Immediate Release

December 13, 2024

Contact:

Katie Duberg, 443-844-8320, katie@workfamilyca.org 

Katie Wutchiett, 415-593-0064, kwutchiett@legalaidatwork.org 

California Continues to Lead on Supporting Working Families:

2025 Brings Historic Increase in Paid Family Leave Benefits for Most California Workers 

California -  Starting January 1, 2025, California’s Paid Family Leave and Disability Insurance benefits will provide far more support to Californians who need time off from work to bond with a new baby, care for a sick loved one, due to ailing health, or for meet certain needs when a family member is deployed. The benefits available to low and middle-income workers will rise from 60% to 90% of their regular income while they are unable to work. This historic boost in support for families was made possible by SB 951 (Durazo), signed into law by Governor Newsom in 2022. 

"I authored SB 951 to make sure that every California worker can afford to care for their family and themselves when most needed, whether that is welcoming a new child, caring for a seriously ill family member or recovering from their own serious illness.  I applaud Governor Newsom for signing my SB 951 into law. As a mother, a sister and a grandmother, I know how important it is to be there for your family when it really matters.” said Senator María Elena Durazo (D Los Angeles), “Next year, 18 million California workers will be eligible for higher paid family and medical leave insurance benefits, including middle and low paid workers who will receive up to 90 percent of their lost wages when out on leave.  This change in the law will allow millions of workers, especially those paid lower wages, to finally afford to use the family and medical leave insurance benefits they have been contributing to for all these years."

Prior to January 1, 2025, many workers could not afford to take time off from work in their times of need because Paid Family Leave (PFL) and State Disability Insurance (SDI) benefits only paid 60% of their regular earnings. This meant that Californians were paying into these programs, but workers who could not afford a 40% pay cut were unable to use them, continuing instead to work in their families’ greatest times of need. Workers earning low wages in California are disproportionately women, immigrants, identify as Black or Latinx, and are increasingly adults older than 55 years old. A diverse coalition of more than 450 organizations supported SB 951 (Durazo) in 2022. 

"It would be very helpful [to receive 90% of my income], I took two weeks off when my baby was born and fell behind on my savings.” said Pedro, a new father who works in a restaurant. “This is important so I may enjoy my time with him, now I am only with him one day a week because I am working, I want to see him grow.” Pedro took unpaid leave to bond with his baby earlier this year but plans to apply for PFL and take additional time to bond in 2025.

California’s landmark PFL and SDI programs cover approximately 18.7 million workers across the state. These programs are entirely employee-funded through a payroll contribution into the SDI Fund and allow workers to get partial income when they are on leave from work for covered reasons.  Workers apply for SDI when they are unable to work because of their own health, and PFL when they are taking time to care for a seriously ill loved one, bond with a new child, or attend to a need arising out of a loved one’s deployment.

“As a parent who could not afford to use Paid Family Leave back when I wanted to take it, I’m excited for all the people who will now be able to use Paid Family Leave. When parents know they can take Paid Family Leave it brings down their stress.” said Jerry Sandoval-Neri, member of Parent Voices and California Work & Family Coalition. “SB 951 shows that we can build the future we need and deserve. ” 

Starting January 1, 2025 California’s Paid Family Leave (PFL) and State Disability Insurance (SDI) Benefits will increase to 90% of regular wages for low to middle income workers (up from 60-70%). This change will mean that millions of California workers - those earning up to roughly $62,000 per year - will now be able to afford to take leave when they need it to bond with a new baby or to care for their own or a family member’s serious health condition. 

##

You can learn more about 2025 changes to Paid Family Leave and Disability Insurance here.