San Francisco employers with twenty or more employees should review their parental leave policies in light of the new city ordinance, which requires these employers to cover 45% of the cost of parental leave for up to six weeks (up to $924 per week under the 2016 supplemental compensation rate). The ordinance is intended to provide wage supplementation for employees who otherwise receive 55% wage replacement for up to six weeks through the California Paid Family Leave program. The ordinance covers all employees (full-time, part-time, and temporary) (1) who began employment at least 180 days prior to the start of the leave period, (2) who work at least eight hours per week for the employer within the geographic boundaries of San Francisco, (3) at least 40% of whose total weekly hours worked for the employer are within the geographic boundaries of San Francisco, and (4) who are eligible to receive state paid family leave compensation for the purpose of bonding with a new child. The ordinance will phase in gradually based on employer size – January 1, 2017 (50 or more employees), July 1, 2017 (35 or more employees), and January 1, 2018 (20 or more employees).
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