New California Law Boosts Paid Family-Leave Benefits

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California Governor Jerry Brown has recently signed a new law increasing time-off pay for employees who have to leave work to care for their family. This, according to Gov. Brown, is a step towards compensation for the gross inequality experienced by many workers.

The newly signed AB908 provides workers with higher compensation (compared with the current program’s 55% of their wages) for up to six weeks.

The new law will allow employees earning close to minimum wage to be paid 70% of their salary while on leave, while those with higher pay, up to $108,000 yearly, will receive 60% of their salary while on leave. This change is expected to take effect in 2018.

President Obama praised the new law and urged federal lawmakers to provide “this basic security.” He said, “Congress needs to catch up to California—and to countries all over the world—by acting to guarantee paid family leave to all Americans.”

This new development is definitely a step towards the right direction. We are optimistic that this is just one in a series of steps taken to ensure that the issue on income inequality is addressed.

Sources:
LA Times
Wall Street Journal

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