AB-2123: Key Changes to California’s Paid Family Leave Program (PFL). Effective January 1, 2025

California businesses, take note: changes to the Paid Family Leave (PFL) program are on the horizon. Assembly Bill No. 2123 (AB-2123) introduces a significant update to employer requirements under California’s PFL program. Effective January 1, 2025, employers will no longer be able to require employees to exhaust up to two weeks of accrued vacation before accessing their PFL benefits.

What Is PFL?

California’s Paid Family Leave program provides eligible employees time off to:

• Care for a seriously ill family member.
• Bond with a new child.
• Participate in qualifying military-related events involving a family member.

These benefits offer employees vital financial support during critical life events, complementing unpaid leave provided under the Family and Medical Leave Act (FMLA) and California Family Rights Act (CFRA).

The Key Update: AB-2123

Under the current law, employers could mandate that employees use up to two weeks of accrued vacation before receiving PFL benefits. Starting January 1, 2025, this requirement will no longer be permissible.

Employers should take immediate action to review and revise their policies to comply with AB-2123, including:

1. Updating Leave Policies – Ensure handbooks and internal policies reflect the new law.
2. Training Management – Educate HR and managerial staff on the updated leave protocols.
3. Payroll Adjustments – Align payroll practices with the new eligibility timelines for PFL benefits.

Why This Matters for Employers

The elimination of this vacation-use requirement means that businesses must be prepared for employees to access PFL benefits sooner. Employers who fail to comply risk potential legal and financial consequences.

How Anelya Law Offices Can Help

Navigating employment law changes can be complex. At Anelya Law Offices, we specialize in California business law and are here to help your business implement these changes seamlessly. Our team can assist with:

• Policy review and updates.
• Compliance training.
• Tailored legal advice to ensure smooth adoption of AB-2123.

Don’t let January 1, 2025, catch you unprepared. Contact Anelya Law Offices today for guidance and support in implementing these important changes. Together, we’ll ensure your business stays compliant and thrives in California’s evolving legal landscape.