If you have employees working in San Francisco, the Paid Parental Leave Ordinance (PPLO) adds an extra layer of employer responsibility. Unlike CA PFL, which is funded by the state, PPLO requires employers to cover the remaining percentage of an employee’s wages to bring them to 100% of their regular pay while they’re receiving PFL benefits.
Who Does PPLO Apply To?
- Employers with 20+ employees worldwide (including remote and out-of-state workers).
- Employees who work in San Francisco at least 8 hours per week.
- Employees who have been with the company for at least 180 days.
What Employers Must Do
- Top-Up CA PFL Benefits: Employees receiving 70% wage replacement from CA PFL must receive a 30% top-up from their employer (or higher, depending on wage caps).
- Update Leave Policies & Payroll Systems: Employers need to adjust payroll to ensure employees receive full pay during their PFL-covered leave period.
- Communicate with Employees: Make sure employees are aware of PPLO eligibility and how it affects their parental leave benefits.
Why PPLO Matters for Employers
Unlike CA PFL, which is funded by the state, PPLO is fully employer-funded, meaning compliance is crucial to avoid penalties. By staying informed and updating your policies accordingly, your business can provide a competitive parental leave package while remaining compliant with San Francisco regulations.
