California’s Family Leave Mediation program and Paid Family Leave Grants program — aimed at supporting small businesses and their employees in managing family leave — recently were made permanent and had their funding renewed, respectively. Both initiatives provide crucial assistance to small employers facing the complexities of family leave laws and the financial challenges associated with employees taking leave. Read to learn more about each program and how small employers can participate in them.
Family Leave Mediation Program
Governor Gavin Newsom recently signed AB 2011, making the Family Leave Mediation program, originally created in 2020, permanent. This mediation program offers a lifeline to small employers (five to 19 employees) who are navigating the intricate California Family Rights Act (CFRA) regulations.
Remember on January 1, 2021, CFRA was expanded, reducing the 50 employee threshold to just five, broadening the scope of applicable family leave and extending the types of family members for whom an employee could take leave to provide care. Two years later, California enacted a law that requires employers to provide eligible employees with up to five days of bereavement leave upon the death of family member.
AB 2011 also adds reproductive loss leave to the mediation scope, ensuring comprehensive coverage for various types of family leave. The Family Leave Mediation program addresses these leave expansions by allowing family leave claims to be resolved through mediation with the California Civil Rights Department (CRD) — free of charge — rather than going straight to court. This process not only saves small businesses from potential costs due to litigation but also ensures fair settlements for employees. The program’s success is evident, with over half of mediated cases resulting in settlements, directing hundreds of thousands of dollars to workers.
Once the CRD receives an employee’s claim regarding family leave, it will notify the employer and any other respondents. The employer has 30 days from the receipt of this notification to request mediation before the employee can file suit. To request mediation, the employer or employee must email the CRD Dispute Resolution Division at drdonlinerequests@calcivilrights.ca.gov. If the request for mediation is made within the 30-day period, the CRD will initiate mediation within 60 days.
Although the Family Leave Mediation program is currently only available to employees working for employers with five to 19 employees, employees working for larger employers may be eligible for dispute resolution services through the CRD. Additionally, any employer whose employees refuse or threaten to refuse to cooperate with the Fair Employment and Housing Act may file a complaint with the CRD asking for assistance through mediation.
Employers can obtain additional information about the mediation program by visiting the CRD’s Frequently Asked Questions website.
Paid Family Leave Grants Program
Complementing the mediation program, California’s Paid Family Leave (PFL) Grants program provides financial assistance to small businesses impacted when employees take family leave. The program’s funding was renewed on June 1, 2024.
Administered by the Employment Development Department (EDD), California’s PFL program provides eligible employees with up to eight weeks of wage replacement benefits when the employee is off work for certain qualifying reasons, such bonding with a new child or caring for a seriously ill family member. The grants program not only supports employees during critical times but also aids small businesses in managing the financial strain associated with such leaves by offering up to $2,000 per employee to businesses with one to 50 employees, and up to $1,000 per employee for those with 51 to 100 employees.
These grants are intended to help small businesses manage the increased costs associated with employee absences. This includes expenses such as cross-training current staff or hiring and training temporary replacements. Eligible businesses must have had at least one employee utilizing California’s PFL on or after June 1, 2024, be a registered business in active status with the state, have a valid California Employer Account Number, and employ between one and 100 employees. However, businesses using Professional Employer Organizations (PEOs) for payroll services are not eligible for these grants.
For more information or to apply for a grant, visit CaliforniaPFL.com, including their Frequently Asked Questions. After reviewing the eligibility requirements and collecting the information needed to apply, it will take businesses approximately 10 to 15 minutes to fill out the online application.
Vanessa M. Greene, J.D., Employment Law Subject Matter Expert, CalChamber
CalChamber members can read more about Paid Family Leave in the HR Library, including our How To: Administer Paid Family Leave, State Disability Leave and Paid Family Leave Comparison, and Complying with State Disability Insurance and Paid Family Leave Law. Not a member? Learn more about how HRCalifornia can help you.
