On Sept. 29, California Gov. Gavin Newsom signed into law Assembly Bill 2123. Beginning on Jan. 1, 2025, AB 2123 will eliminate employers’ ability to require employees to use up to two weeks of company-provided vacation before they start receiving paid family leave (PFL) insurance benefits paid by the state (or by their employer, if the company has an approved voluntary plan that applies in lieu of the state program). AB 2123 represents the latest piecemeal change California has made to its PFL program in recent years, following prior amendments that have, for example, removed the ceiling on taxable wages for employee contribution purposes, increased the monetary benefits an individual might receive, extended the amount of time PFL benefits might be available from six to eight weeks, and expanded covered uses to include qualifying military exigencies.

Why Require Two Weeks of Vacation Before an Employee Can Receive Benefits?

For some employers—and the state—there could be perceived benefits to requiring employees to use up to two weeks of vacation before allowing them to begin collecting PFL benefits.

For the state, it could mean not having to pay out the full benefit (up to eight weeks of benefits in a 52-week period) to individuals who take time off from work for the following reasons:

• To care for a seriously ill family member (child, grandchild, grandparent, parent, sibling, spouse, or domestic partner).
• To bond with a minor child within one year of the child’s birth...

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