Paid Family Leave: Security For Employees Means Confusion For Employers

San Francisco Daily Journal

In September 2002, Cali­fornia became the first state in the nation to enact a paid leave law, which pro­vides up to six weeks of paid fam­ily and medical leave in the form of Family Temporary Disability In­surance (FTDI). Eligibility for FTDI is based on the employee’s past contributions to the disability insurance fund.

Many California businesses oppose this legislation as it creates significant compliance challenges for covered em­ployees and for legal departments and human resource professionals. Littler outlines FIDI and possible fallout, including increased absenteeism and training costs, decreased productivity, employer contributions, risk of legal liability, interference with collective bargaining agreements, and potential obligation to contribution if the program is underfunded.

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