Skip to Content
  • 2016

    Today, Governor Jerry Brown signed into law Assembly Bill 908, which increases the level and duration of benefits provided in the Paid Family Leave (PFL) and State Disability (SDI) insurance programs. The law also removes the 7-day waiting period normally required for these benefits. The law goes into effect January 1, 2018.

    More specifically, AB 908 revises the formula for determining benefits available under California’s unemployment compensation disability and family temporary disability insurance programs. Under the revisions, the wage replacement rate for PFL and SDI benefits are increased from 55% to:

    1) Seventy percent for those who make up to 33% of the California average weekly wage.

    2) Sixty percent for those who make more than 33% of the California average weekly wage.

    The law is intended to address the inadequacy of the current PFL and SDI’s 55% wage replacement rate, particularly for lower income workers, who have extremely low utilization for both SDI and PFL when compared to workers with higher wages.

    California’s Paid Family Leave was enacted in 2002 to extend disability compensation to individuals who take time off work to care for a seriously ill child, spouse, parent, domestic partner, or to bond with a new minor child. The PFL program provides a cash benefit set at a percentage of “base period” wages for up to 6 weeks, which a current maximum weekly benefit of $1,104 (adjusted annually).

    For more information contact:

    Gary E. Scalabrini, Esq. 
    Gibbs Giden Locher Turner Senet & Wittbrodt LLP 
    1880 Century Park East 12th Floor
    Los Angeles, CA 90067

    The content contained herein is published online by Gibbs Giden Locher Turner Senet & Wittbrodt LLP (“Gibbs Giden”) for informational purposes only, may not reflect the most current legal developments, verdicts or settlements, and does not constitute legal advice. Do not act on the information contained herein without seeking the advice of licensed counsel. For specific questions about any of the content discussed herein or any of the content posted to the Gibbs Giden website please contact the article attorney author or send an email to The transmission of information by email, over the Gibbs Giden website, or any transmission or exchange of information over the Internet, or by any of the included links is not intended to create and does not constitute an attorney-client relationship. For a complete description of the terms of use of this information and the Gibbs Giden website please see the Legal Notices section at /legal-disclaimer. This publication may not be reproduced or used in whole or in part without written consent of the firm. 
    Copyright 2016 Gibbs Giden Locher Turner Senet & Wittbrodt LLP ©