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California Governor Signs
Paid Family Leave Bill

September 24, 2002

Governor Gray Davis has signed legislation making California the first state in the nation to provide its workers paid family leave.

"The right to paid leavea right many union members enjoy because of hard-won bargaining victoriesis a right that all workers should enjoy," said AFL-CIO President John Sweeney. "The labor movement has worked for more than 20 years to encourage states to pass such legislation and applauds California's leadership to enact a comprehensive family leave program."

Although federal law allows workers to take up to 12 weeks of unpaid leave to care for an ailing child or parent, most workers cannot afford to be without a paycheck for such a length of time. The California law will allow workers six weeks annual leave. While off, a portion of their regular pay would come through the states disability insurance program. All workers in California would contribute up to $45 per year to fund the state family leave program.

A U.S. Department of Labor study shows that 78 percent of workers nationwide who need family leave cannot afford to take it unpaid. Additionally, 55 percent of workers do not have vacation or sick days to fall back on in case of a family emergency.

The measure, which passed the state Legislature over the Labor Day weekend, will take effect in 2004. The bill was drafted with the help of the California Labor Federation, AFL-CIO.

Similar measures are pending in other states.

Although business groups opposed the bill, the Labor Project for Working Families found California companies could save $89 million annually under such a program due to increased employee retention and decreased worker turnover.