Bill Text: CA AB2167 | 2023-2024 | Regular Session | Amended

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Bill Title: Unemployment insurance: disability: paid family leave.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed) 2024-06-20 - In committee: Hearing postponed by committee. [AB2167 Detail]

Download: California-2023-AB2167-Amended.html

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Amended  IN  Senate  June 18, 2024

Amended  IN  Senate  June 13, 2024

Amended  IN  Assembly  May 20, 2024

Amended  IN  Assembly  March 11, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 2167

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Introduced by Assembly Member Cervantes
(Coauthor: Senator Durazo)

February 06, 2024

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An act to amend Sections 2701.5, 2706.1, Section 2707.2, and 3301 to amend, repeal, and add Sections 2701.5, 2706.1, 3301, and 3304 of, and to add Sections 3303.2 and 3304.1 Section 3303.2 to, the Unemployment Insurance Code, relating to unemployment insurance.

LEGISLATIVE COUNSEL'S DIGEST

AB 2167, as amended, Cervantes. Unemployment insurance: disability: paid family leave.

Existing unemployment compensation disability law requires workers to pay contribution rates based on, among other things, wages received in employment and benefit disbursement, for payment into the Unemployment Compensation Disability Fund, for purposes of compensating in part for the wage loss sustained by any individual who is unable to work due to the employee’s own sickness or injury, among other reasons. Existing law sets forth standards for eligibility to receive unemployment compensation disability benefits.

Existing law authorizes an individual to file a first claim for these benefits no later than the 41st consecutive day following the first compensable day of unemployment and disability with respect to which the claim is made for benefits, as specified.

This bill would, instead, authorize an individual to file a first claim for benefits no later than the 60th consecutive day following the first compensable day of unemployment and disability. The bill would also also, beginning when the next scheduled improvement of the Employment Development Department’s integrated claims management system is implemented, authorize an individual to file a claim for disability insurance benefits up to 60 30 days before the first compensable day with respect to which the claim is made for benefits and make other conforming changes.

Existing law requires the department to make a determination as to the eligibility of the claimant for benefits and to notify the claimant of the determination and the reasons therefor. Existing law authorizes the claimant to appeal therefrom to an administrative law judge within 60 days from service of the notice of determination.

This bill would extend the period during which the claimant may appeal the department’s determination from 30 days to 60 days. The bill would also delete an obsolete provision.

Pursuant to the above-described state disability insurance program, existing law requires the executive officer of the Employment Development Department, known as the Director of Employment Development, to administer the state’s unemployment compensation disability insurance program, which includes the family temporary disability insurance program, also known as the paid family leave program.

Existing law establishes the family temporary disability insurance program for the provision of wage replacement benefits to workers who take time off work to care for certain seriously ill family members, to bond with a minor child within one year of birth or placement, as specified, or to participate in a qualifying exigency related to the covered active duty or call to covered active duty of certain family members. Existing law requires an individual to file a claim for family temporary disability insurance benefits no later than the 41st consecutive day following the first compensable day with respect to which the claim is made for benefits, as specified. Existing law provides that an individual is deemed eligible for family temporary disability insurance benefits only if the director makes specified findings. Existing law requires the department to distribute the application for family temporary disability insurance benefits, in addition to English, in all non-English languages spoken by a substantial number of non-English-speaking applicants, as defined.

This bill would extend the timeline for an individual to file a claim for family temporary disability insurance benefits to no later than the 60th consecutive day following the first compensable day with respect to which the claim is made for benefits, and would authorize an individual individual, beginning when the next scheduled improvement of the Employment Development Department’s integrated claims management system is implemented, to file that claim for benefits up to 60 no earlier than 30 days before the first compensable day, as provided.

For purposes of the state’s unemployment compensation disability insurance program, existing law requires, after a claim for benefits is filed, the department to determine the eligibility of the claimant for benefits and to notify the claimant of the determination. Existing law allows the claimant to appeal to an administrative law judge within 30 days from mailing or personal service of the determination, which may be extended for good cause.

For purposes of the paid family leave program, this bill would extend the appeal timeline to 60 days from the service of the notice of determination, and would authorize that period to be extended for good cause, as defined. The bill would also require the department department, beginning when the next scheduled improvement of the Employment Development Department’s integrated claims management system is implemented, to issue the initial payment for family temporary disability insurance benefits within 14 days of receipt of an eligible claimant’s properly completed first family temporary disability insurance claim or as soon as eligibility begins, whichever occurs later.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 2701.5 of the Unemployment Insurance Code is amended to read:

2701.5.

 (a) The department shall issue the initial payment for unemployment compensation disability benefits to a monetarily eligible claimant who is otherwise determined eligible by the department under applicable law and regulation within 14 days of receipt of his or her the claimant’s properly completed first disability claim.

(b) This section shall remain in effect only until the next scheduled improvement of the Employment Development Department’s integrated claims management system is implemented, and as of that date is repealed.

SEC. 2.

 Section 2701.5 is added to the Unemployment Insurance Code, to read:

2701.5.

 (a) The department shall issue the initial payment for unemployment compensation disability benefits to a monetarily eligible claimant who is otherwise determined eligible by the department under applicable law and regulation within 14 days of receipt of the claimant’s properly completed first disability claim or as soon as eligibility begins for the claimant, whichever is later.

(b) This section shall become operative when the next scheduled improvement of the Employment Development Department’s integrated claims management system is implemented.

SEC. 3.

 Section 2706.1 of the Unemployment Insurance Code is amended to read:

2706.1.

 (a) A first claim, accompanied by a certificate on a form furnished by the department to the claimant, shall be filed not later than the 41st 60th consecutive day following the first compensable day of unemployment and disability with respect to which the claim is made for benefits, which time shall be extended by the department upon a showing of good cause. If a first claim is not complete, the claim form shall be returned to the claimant for completion and it shall be completed and returned not later than the 10th consecutive day after the date it was mailed by the department to the claimant, except that such time shall be extended by the department upon a showing of good cause.

(b) This section shall remain in effect only until the next scheduled improvement of the Employment Development Department’s integrated claims management system is implemented, and as of that date is repealed.

SEC. 4.

 Section 2706.1 is added to the Unemployment Insurance Code, to read:

2706.1.

 (a) A first claim, accompanied by a certificate on a form furnished by the department to the claimant, shall be filed no earlier than 30 days before, and no later than the 60th day after, the first compensable day of unemployment and disability with respect to which the claim is made for benefits, which time shall be extended by the department upon a showing of good cause. If a first claim is not complete, the claim form shall be returned to the claimant for completion and it shall be completed and returned not later than the 10th consecutive day after the date it was mailed by the department to the claimant, except that such time shall be extended by the department upon a showing of good cause.

(b) This section shall become operative when the next scheduled improvement of the Employment Development Department’s integrated claims management system is implemented.

SEC. 5.

 Section 2707.2 of the Unemployment Insurance Code is amended to read:

2707.2.

 (a) The department shall consider the facts submitted by the employer pursuant to Section 2707.1 and make a determination as to the eligibility of the claimant for benefits. The department shall promptly notify the claimant of the determination and the reasons therefor. The claimant may appeal therefrom to an administrative law judge within 30 60 days from service of the notice of determination. The 30-day 60-day period may be extended for good cause. The director shall be an interested party to any appeal.

(b) “Good cause,” as used in this section, shall include, but not be limited to, mistake, inadvertence, surprise, or excusable neglect.

(c)This section shall become operative on March 1, 2018.

SEC. 6.

 Section 3301 of the Unemployment Insurance Code is amended to read:

3301.

 (a) (1) The purpose of this chapter is to establish, within the state disability insurance program, a family temporary disability insurance program. Family temporary disability insurance shall provide up to eight weeks of wage replacement benefits to workers who take time off work to care for a seriously ill child, spouse, parent, grandparent, grandchild, sibling, or domestic partner, to bond with a minor child within one year of the birth or placement of the child in connection with foster care or adoption, or to participate in a qualifying exigency related to the covered active duty or call to covered active duty of the individual’s spouse, domestic partner, child, or parent in the Armed Forces of the United States.

(2) Nothing in this chapter shall be construed to abridge the rights and responsibilities conveyed under the CFRA or pregnancy disability leave.

(b) (1) An individual’s “weekly benefit amount” for periods of disability commencing before January 1, 2025, shall be the amount provided in Section 2655, and for periods of disability commencing on or after January 1, 2025, shall be the amount provided in paragraph (2). An individual is eligible to receive family temporary disability insurance benefits equal to one-seventh of the individual’s weekly benefit amount for each full day during which the individual is unable to work due to caring for a seriously ill or injured family member, bonding with a minor child within one year of the birth or placement of the child in connection with foster care or adoption, or participating in a qualifying exigency related to the covered active duty or call to covered active duty of the individual’s spouse, domestic partner, child, or parent in the Armed Forces of the United States.

(2) For periods of disability commencing on or after January 1, 2025, the weekly benefit amount shall be as follows:

(A) When the amount of wages paid to the individual for employment by employers during the quarter of the individual’s disability base period in which these wages were highest is less than seven hundred twenty-two dollars and fifty cents ($722.50), then fifty dollars ($50).

(B) When the amount of wages paid to the individual for employment by employers during the quarter of the individual’s disability base period in which these wages were highest is more than 70 percent of the state average quarterly wage, the weekly benefit amount shall be equal to the greater of 70 percent of the wages paid to an individual for employment by employers during the quarter of the individual’s disability base period in which these wages were highest, divided by 13, but not exceeding the maximum workers’ compensation temporary disability indemnity weekly benefit amount established by the Department of Industrial Relations pursuant to Section 4453 of the Labor Code, or 63 percent of the state average weekly wage.

(C) When the amount of wages paid to the individual for employment by employers during the quarter of the individual’s disability base period in which these wages were highest is seven hundred twenty-two dollars and fifty cents ($722.50) or more, but 70 percent or less than the state average quarterly wage, then the weekly benefit amount shall be equal to 90 percent of the wages paid to an individual for employment by employers during the quarter of the individual’s disability base period in which these wages were highest, divided by 13, but not exceeding the maximum workers’ compensation temporary disability indemnity weekly benefit amount established by the Department of Industrial Relations pursuant to Section 4453 of the Labor Code.

(3) For purposes of this subdivision, “state average weekly wage” and “state average quarterly wage” have the same meanings as defined in subdivision (g) of Section 2655.

(c) The maximum amount payable to an individual during any disability benefit period for family temporary disability insurance shall be eight times the individual’s “weekly benefit amount,” but in no case shall the total amount of benefits payable be more than the total wages paid to the individual during the individual’s disability base period. If the benefit is not a multiple of one dollar ($1), it shall be computed to the next higher multiple of one dollar ($1).

(d) No more than eight weeks of family temporary disability insurance benefits shall be paid within any 12-month period.

(e) An individual shall file a claim for family temporary disability insurance benefits not later than the 41st 60th consecutive day following the first compensable day with respect to which the claim is made for benefits, which time shall be extended by the department upon a showing of good cause. If a first claim is not complete, the claim form shall be returned to the claimant for completion and it shall be completed and returned not later than the 10th consecutive day after the date it was mailed by the department to the claimant, except that such time shall be extended by the department upon a showing of good cause.

(f) This section shall remain in effect only until the next scheduled improvement of the Employment Development Department’s integrated claims management system is implemented, and as of that date is repealed.

SEC. 7.

 Section 3301 is added to the Unemployment Insurance Code, to read:

3301.

 (a) (1) The purpose of this chapter is to establish, within the state disability insurance program, a family temporary disability insurance program. Family temporary disability insurance shall provide up to eight weeks of wage replacement benefits to workers who take time off work to care for a seriously ill child, spouse, parent, grandparent, grandchild, sibling, or domestic partner, to bond with a minor child within one year of the birth or placement of the child in connection with foster care or adoption, or to participate in a qualifying exigency related to the covered active duty or call to covered active duty of the individual’s spouse, domestic partner, child, or parent in the Armed Forces of the United States.

(2) Nothing in this chapter shall be construed to abridge the rights and responsibilities conveyed under the CFRA or pregnancy disability leave.

(b) (1) An individual’s “weekly benefit amount” for periods of disability commencing before January 1, 2025, shall be the amount provided in Section 2655, and for periods of disability commencing on or after January 1, 2025, shall be the amount provided in paragraph (2). An individual is eligible to receive family temporary disability insurance benefits equal to one-seventh of the individual’s weekly benefit amount for each full day during which the individual is unable to work due to caring for a seriously ill or injured family member, bonding with a minor child within one year of the birth or placement of the child in connection with foster care or adoption, or participating in a qualifying exigency related to the covered active duty or call to covered active duty of the individual’s spouse, domestic partner, child, or parent in the Armed Forces of the United States.

(2) For periods of disability commencing on or after January 1, 2025, the weekly benefit amount shall be as follows:

(A) When the amount of wages paid to the individual for employment by employers during the quarter of the individual’s disability base period in which these wages were highest is less than seven hundred twenty-two dollars and fifty cents ($722.50), then fifty dollars ($50).

(B) When the amount of wages paid to the individual for employment by employers during the quarter of the individual’s disability base period in which these wages were highest is more than 70 percent of the state average quarterly wage, the weekly benefit amount shall be equal to the greater of 70 percent of the wages paid to an individual for employment by employers during the quarter of the individual’s disability base period in which these wages were highest, divided by 13, but not exceeding the maximum workers’ compensation temporary disability indemnity weekly benefit amount established by the Department of Industrial Relations pursuant to Section 4453 of the Labor Code, or 63 percent of the state average weekly wage.

(C) When the amount of wages paid to the individual for employment by employers during the quarter of the individual’s disability base period in which these wages were highest is seven hundred twenty-two dollars and fifty cents ($722.50) or more, but 70 percent or less than the state average quarterly wage, then the weekly benefit amount shall be equal to 90 percent of the wages paid to an individual for employment by employers during the quarter of the individual’s disability base period in which these wages were highest, divided by 13, but not exceeding the maximum workers’ compensation temporary disability indemnity weekly benefit amount established by the Department of Industrial Relations pursuant to Section 4453 of the Labor Code.

(3) For purposes of this subdivision, “state average weekly wage” and “state average quarterly wage” have the same meanings as defined in subdivision (g) of Section 2655.

(c) The maximum amount payable to an individual during any disability benefit period for family temporary disability insurance shall be eight times the individual’s “weekly benefit amount,” but in no case shall the total amount of benefits payable be more than the total wages paid to the individual during the individual’s disability base period. If the benefit is not a multiple of one dollar ($1), it shall be computed to the next higher multiple of one dollar ($1).

(d) No more than eight weeks of family temporary disability insurance benefits shall be paid within any 12-month period.

(e) An individual shall file a claim for family temporary disability insurance benefits no earlier than 30 days before, and not later than the 60th consecutive day following, the first compensable day with respect to which the claim is made for benefits, which time shall be extended by the department upon a showing of good cause. If a first claim is not complete, the claim form shall be returned to the claimant for completion and it shall be completed and returned not later than the 10th consecutive day after the date it was mailed by the department to the claimant, except that the time shall not be extended by the department upon a showing of good cause.

(f) This section shall become operative when the next scheduled improvement of the Employment Development Department’s integrated claims management system is implemented.

SEC. 8.

 Section 3303.2 is added to the Unemployment Insurance Code, to read:

3303.2.

 (a) (1) Notwithstanding any other law, a claimant may appeal the department’s determination regarding their eligibility for family temporary disability insurance benefits to an administrative law judge within 60 days from service of the notice of determination.

(2) The 60-day period may be extended for good cause.

(3) The director shall be an interested party to any appeal.

(b) “Good cause,” as used in this section, includes, but is not limited to, mistake, inadvertence, surprise, or excusable neglect.

SEC. 9.

 Section 3304 of the Unemployment Insurance Code is amended to read:

3304.

 (a) Eligible workers shall receive benefits in accordance with provisions established under this division.

(b) This section shall remain in effect only until the next scheduled improvement of the Employment Development Department’s integrated claims management system is implemented, and as of that date is repealed.

SEC. 10.

 Section 3304 is added to the Unemployment Insurance Code, to read:

3304.

 (a) The department shall issue the initial payment for family temporary disability insurance benefits under this chapter to a monetarily eligible claimant who is otherwise determined by the department as eligible to receive those benefits within 14 days of receipt of the claimant’s properly completed first family temporary disability insurance claim or as soon as eligibility begins, whichever occurs later.

(b) This section shall become operative when the next scheduled improvement of the Employment Development Department’s integrated claims management system is implemented.

SECTION 1.Section 2701.5 of the Unemployment Insurance Code is amended to read:

2701.5.

The department shall issue the initial payment for unemployment compensation disability benefits to a monetarily eligible claimant who is otherwise determined eligible by the department under applicable law and regulation within 14 days of receipt of the claimant’s properly completed first disability claim or as soon as eligibility begins for the claimant, whichever is later.

SEC. 2.Section 2706.1 of the Unemployment Insurance Code is amended to read:

2706.1.

(a)Notwithstanding any other provision of law, an individual shall file a first claim, accompanied by a certificate on a form furnished by the department to the claimant, no later than the 60th consecutive day following the first compensable day of unemployment and disability with respect to which the claim is made for benefits, which time shall be extended by the department upon a showing of good cause. If a first claim is not complete, the claim form shall be returned to the claimant for completion and it shall be completed and returned not later than the 10th consecutive day after the date it was mailed by the department to the claimant, except that such time shall be extended by the department upon a showing of good cause.

(b)Notwithstanding any other law, an individual may file a claim for disability insurance benefits up to 60 days before the first compensable day with respect to which the claim is made for benefits.

SEC. 3.Section 2707.2 of the Unemployment Insurance Code is amended to read:

2707.2.

(a)The department shall consider the facts submitted by the employer pursuant to Section 2707.1 and make a determination as to the eligibility of the claimant for benefits. The department shall promptly notify the claimant of the determination and the reasons therefor. The claimant may appeal therefrom to an administrative law judge within 60 days from service of the notice of determination. The 60-day period may be extended for good cause. The director shall be an interested party to any appeal.

(b)“Good cause,” as used in this section, shall include, but not be limited to, mistake, inadvertence, surprise, or excusable neglect.

SEC. 4.Section 3301 of the Unemployment Insurance Code is amended to read:

3301.

(a)(1)The purpose of this chapter is to establish, within the state disability insurance program, a family temporary disability insurance program. Family temporary disability insurance shall provide up to eight weeks of wage replacement benefits to workers who take time off work to care for a seriously ill child, spouse, parent, grandparent, grandchild, sibling, or domestic partner, to bond with a minor child within one year of the birth or placement of the child in connection with foster care or adoption, or to participate in a qualifying exigency related to the covered active duty or call to covered active duty of the individual’s spouse, domestic partner, child, or parent in the Armed Forces of the United States.

(2)Nothing in this chapter shall be construed to abridge the rights and responsibilities conveyed under the CFRA or pregnancy disability leave.

(b)(1)An individual’s “weekly benefit amount” for periods of disability commencing before January 1, 2025, shall be the amount provided in Section 2655, and for periods of disability commencing on or after January 1, 2025, shall be the amount provided in paragraph (2). An individual is eligible to receive family temporary disability insurance benefits equal to one-seventh of the individual’s weekly benefit amount for each full day during which the individual is unable to work due to caring for a seriously ill or injured family member, bonding with a minor child within one year of the birth or placement of the child in connection with foster care or adoption, or participating in a qualifying exigency related to the covered active duty or call to covered active duty of the individual’s spouse, domestic partner, child, or parent in the Armed Forces of the United States.

(2)For periods of disability commencing on or after January 1, 2025, the weekly benefit amount shall be as follows:

(A)When the amount of wages paid to the individual for employment by employers during the quarter of the individual’s disability base period in which these wages were highest is less than seven hundred twenty-two dollars and fifty cents ($722.50), then fifty dollars ($50).

(B)When the amount of wages paid to the individual for employment by employers during the quarter of the individual’s disability base period in which these wages were highest is more than 70 percent of the state average quarterly wage, the weekly benefit amount shall be equal to the greater of 70 percent of the wages paid to an individual for employment by employers during the quarter of the individual’s disability base period in which these wages were highest, divided by 13, but not exceeding the maximum workers’ compensation temporary disability indemnity weekly benefit amount established by the Department of Industrial Relations pursuant to Section 4453 of the Labor Code, or 63 percent of the state average weekly wage.

(C)When the amount of wages paid to the individual for employment by employers during the quarter of the individual’s disability base period in which these wages were highest is seven hundred twenty-two dollars and fifty cents ($722.50) or more, but 70 percent or less than the state average quarterly wage, then the weekly benefit amount shall be equal to 90 percent of the wages paid to an individual for employment by employers during the quarter of the individual’s disability base period in which these wages were highest, divided by 13, but not exceeding the maximum workers’ compensation temporary disability indemnity weekly benefit amount established by the Department of Industrial Relations pursuant to Section 4453 of the Labor Code.

(3)For purposes of this subdivision, “state average weekly wage” and “state average quarterly wage” have the same meanings as defined in subdivision (g) of Section 2655.

(c)The maximum amount payable to an individual during any disability benefit period for family temporary disability insurance shall be eight times the individual’s “weekly benefit amount,” but in no case shall the total amount of benefits payable be more than the total wages paid to the individual during the individual’s disability base period. If the benefit is not a multiple of one dollar ($1), it shall be computed to the next higher multiple of one dollar ($1).

(d)No more than eight weeks of family temporary disability insurance benefits shall be paid within any 12-month period.

(e)(1)(A)Notwithstanding any other provision of law, an individual shall file a claim for family temporary disability insurance benefits not later than the 60th consecutive day following the first compensable day with respect to which the claim is made for benefits, which time shall be extended by the department upon a showing of good cause.

(B)Notwithstanding any other provision of law, an individual may file a claim for family temporary disability insurance benefits up to 60 days before the first compensable day with respect to which the claim is made for benefits.

(2)If a first claim is not complete, the claim form shall be returned to the claimant for completion and it shall be completed and returned not later than the 10th consecutive day after the date it was mailed by the department to the claimant, except that such time shall be extended by the department upon a showing of good cause.

SEC. 5.Section 3303.2 is added to the Unemployment Insurance Code, to read:

3303.2.

(a)(1)Notwithstanding any other law, a claimant may appeal the department’s determination regarding their eligibility for family temporary disability insurance benefits to an administrative law judge within 60 days from service of the notice of determination.

(2)The 60-day period may be extended for good cause.

(3)The director shall be an interested party to any appeal.

(b)“Good cause,” as used in this section, includes, but is not limited to, mistake, inadvertence, surprise, or excusable neglect.

SEC. 6.Section 3304.1 is added to the Unemployment Insurance Code, to read:

3304.1.

The department shall issue the initial payment for family temporary disability insurance benefits pursuant to this chapter to a monetarily eligible claimant who is otherwise determined by the department as eligible to receive those benefits within 14 days of receipt of the claimant’s properly completed first family temporary disability insurance claim or as soon as eligibility begins, whichever occurs later.