If I am a small employer, can my employees use Paid Family Leave (PFL)?

Paid Family Leave (PFL) is a wage replacement benefit program, from which employees may be paid benefits during a leave of absence such as family or medical leave under the California Family Rights Act (CFRA) or the federal Family and Medical Leave Act (FMLA). It does not, however, create the right to a leave of absence and does not require you to guarantee reinstatement rights other than those already mandated by law.

PFL covers employees at organizations of any size; however, benefits are available only when an employee is on a leave of absence to care for a seriously ill family member (parent, spouse, child, grandparent, grand- child, sibling, parent-in-law or registered domestic partner) or for child bonding. Beginning July 1, 2028, the definition of family member is being expanded to cover any care recipient related by blood or whose association with the individual is the equivalent of a family relationship. Employees can identify the designated person at the time they request PFL benefits. 

If the employee does not qualify for time off under a mandatory leave law, such as the FMLA or the CFRA, it is an internal call whether to grant time off.

If time off is granted, the employee can apply for PFL. It is processed as payment through the Employment Development Department (EDD) for up to eight weeks, and is a partial wage replacement. Eligible workers can receive up to 70 to 90 percent of their previous weekly earnings.

Employers need to be aware that if they do grant time off when the employee is not entitled to it by law, the action can set a precedent. The next time someone asks to take such leave, the employer may be obligated to provide it because denying the leave, after granting it to someone else, could lead to a discrimination claim.

Read more about Paid Family Leave in the HR Library. Paid Family Leave Pamphlets can be purchased from the CalChamber Store.