On August 7, 2026, the mayor of San Francisco, California signed File # 260451 (Ordinance 162-26), which will lower the amount of time an individual must be employed with their employer before they are potentially entitled to receive supplemental compensation under the Paid Parental Leave Ordinance (SF PPLO).
Under the SF PPLO, if a covered employee is receiving California paid family leave insurance (CA PFL) benefits for new child bonding – bonding with a minor child during the first year after birth or placement through foster care or adoption – employers with 20 or more employees (anywhere) must pay up to eight weeks of “supplemental compensation.” “Supplemental compensation” is the employer’s “top-up” payment that makes up the monetary difference between an employee’s normal weekly wages (calculated using the formula required by the Ordinance) and the amount the employee receives from the state in CA PFL benefits. The SF PPLO limits the total combined amount an employee may receive from CA PFL benefits and employer-paid supplemental compensation. For claims filed in 2026, that maximum combined weekly benefit amount is $2,522.
To be a “covered employee,” an individual must satisfy four criteria. The amendments change the first criterion, lowering the time an employee must be employed from 180 to 90 days (to align with the waiting period under San Francisco’s Paid Sick Leave Ordinance). The remaining criteria, however, have not changed: 2) the employee must perform at...
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