Press Release: Paid Family Leave Bill Moves to Governor Newsom’s Desk
California Work & Family Coalition
For Immediate Release
August 24, 2022
Contact: Jenya Cassidy, jenya@workfamilyca.org, 510.387.4920
Katie Wutchiett, kwutchiett@legalaidwork.org, 415.593.0064
Paid Family Leave Bill Moves to Governor Newsom’s Desk,
Giving CA Opportunity to Lead on Critical Women’s/
Equity Issue Left Out of Inflation Relief Act
Broad coalition of advocates urges Governor to help California reclaim leadership on Paid Family Leave policy;
Without Newsom’s signature on SB 951, California’s payments will drop to the nation’s lowest on Jan 1
Sacramento, CA – SB 951, Senator Maria Elena Durazo’s (D-Los Angeles) bill to make Paid Family Leave (PFL) and State Disability Insurance (SDI) accessible to California’s families, is moving to the Governor’s desk, following the California State Senate’s resounding endorsement. This vote followed the State Assembly’s passing of the bill with a tremendous bipartisan vote of 61 to 9 on August 22nd.
If the Governor does not sign the measure, on January 1, 2023, California PFL and SDI payment rates will drop to providing only 55% of wages, less than in any other state’s program.
“I am proud to author SB 951 and to be working with our co-authors, sponsors and the over 150 organizations who support equitable access to paid family and medical leave,” said Senator Maria Elena Durazo (D-Los Angeles). “It is time for California to return to the forefront of supporting working families.”
California’s leadership in strengthening Paid Family Leave also took on more urgency after Congress passed a pared-back edition of President Biden’s Build Back Better plan. The Inflation Relief Act signed last Tuesday does not include the national paid family and medical leave guarantee families need to avoid going bankrupt when they take paid time off from work to recover from serious illness, care for their seriously ill family member or bond with a new child.
“It’s outrageous that low-income California workers can’t afford to use a program they’ve been paying into their whole working lives. SB 951 would address this by making California’s Paid Family Leave affordable by raising the wage replacement rates for low-income workers. This is something that many other states have already done and it’s completely doable for California,” said Jenya Cassidy, Executive Director of the California Work & Family Coalition.
There is bipartisan support for paid leave nationwide – majorities and super-majorities of Republicans and Independents, respectively, say they are supportive of paid leave in each of two recent public polls, as well as in older surveys. In fact, paid leave is the only policy a majority of voters from every party support aside from allowing Medicare to negotiate drug prices.
"When I had my son, I had to get back to work as soon as possible because I couldn't make it with just the paid family leave benefits,” said Evelyn Barrias, a Subway worker and an activist and leader in the Fight for 15 & a Union movement. “What I received through the paid leave program didn't stretch enough to keep a roof over our heads – let alone allow me to afford diapers, formula, and my newborn's other needs. I had no choice but to go straight back to work, and it still breaks my heart today knowing I couldn't be there for him as a newborn."
“California’s working caregivers are already struggling to make ends meet, even without record inflation, so it’s out of the question for many of them to go without 40% of their income and use the Paid Family Leave program,” said Deliana Speights, International Chair, UFCW Women’s Network and Secretary Treasurer, UFCW Local 1428. “Hard-working lower- and middle-income women, disproportionately women of color, pay into the program out of every paycheck, but new parents or children who need to take care of their ill parents can’t afford to access their benefits. This inability to access the paid leave their paychecks support only exacerbates the health disparities working women of color face. That’s why SB 951 is essential legislation to reduce the inequity low-wage workers face and UFCW’s members are proud to support it.”
“No parent should have to choose between the well-being of their child and their family’s financial security and health,” said Jackie Thu-Huong Wong, First 5 California Executive Director. “With the Assembly’s passage of SB 951, California is one step closer to realizing the promise we made to our working parents 20 years ago when we passed the first-in-the-nation Paid Family Leave program. While we continue the fight to pass a national paid leave program, California can be a beacon of hope for families by making our program accessible to workers of all incomes. In doing so, we will set an example for the rest of the nation of what it looks like to lead with equity. We thank the Legislature for prioritizing this critical legislation and encourage Governor Newsom to sign it when it arrives on his desk.”
“Right now, workers who can’t afford a 40% pay cut are being forced to keep working against their doctor’s orders, to work up until the day they go into labor, to leave ill family members without adequate care, and to return to work right after having a child. There’s no justification for maintaining this inhumane status quo, especially when SB 951 would fix it simply by having the wealthiest Californians contribute to the Disability Insurance Fund at the same rate that middle- and lower-income families already do.” said Katherine Wutchiett, Staff Attorney at Legal Aid at Work.
“If we want to invest in our economy, lower inflation and level the playing field, we must invest in equitable paid family leave policies,” said David Rattray, CEO of UNITE-LA.
“Where and how you work shouldn’t prevent you from caring for a sick parent, bonding with a new child, or recovering fully after a medical procedure,” said Ai-jen Poo, Executive Director of Caring Across Generations. “SB 951 will ensure that direct care providers, janitors, restaurant staff and many other people in low-income jobs will finally be able to care for their own families.”
Background:
SB 951 increases, from 60 to 90 percent, the SDI/PFL wage replacement rate for workers in lower-wage jobs, making these programs far more accessible for Californians who need to take paid time off from work to recover from serious illness, care for their seriously ill family member or bond with a new child without jeopardizing their economic security.
Under current law, low-wage workers must be able to afford a 40% pay cut in order to access the benefits they’ve paid for through a 1.1% contribution from each paycheck. As a result, the lowest wage workers are up to four times less likely to utilize PFL than middle and high-income workers. The current benefit rates sunset at the end of 2022, meaning that unless SB 951 passes, lower-income workers will receive even lower benefits in 2023 than they do now.
Increasing wage replacement rates for these workers is a racial and gender justice issue. California workers earning lower wages are more likely to be women, born outside of the United States, or to identify as Black or Latinx. When lower-wage workers cannot afford to take the leave they are entitled to, they are in essence subsidizing the leaves of whiter and wealthier workers while endangering their health and the well-being of their family.
SB 951 is now headed to Governor Newsom’s desk. Signing the bill is an opportunity for the Governor to uplift hard-working Californians, especially women of color in low-wage jobs, and move closer to attaining his 2019 pledge that all children should benefit from 6 months of paid leave split between two parents.
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