Hunton Employment & Labor Perspectives

Although there is no federally-mandated paid leave for U.S. employees in the private sector, states have increasingly required that employers provide various forms of paid leave to their employees.  That trend continues as several states began imposing requirements upon employers to permit employees to accrue and use paid sick leave for certain medical situations for employees or members of employees’ immediate families.  Paid sick leave for employees in the private sector is now required by 17 states, the District of Columbia, and various municipalities around the country.

As part of Virginia’s overhaul of its labor and employment laws—on which we previously reported—the Commonwealth also enacted Virginia Senate Bill 712, which amended the Virginia Human Rights Act (hereafter, the “VHRA”) to require covered employers to reasonably accommodate the known limitations of an employee as it relates to pregnancy, childbirth, or related medical conditions, unless such an accommodation would impose an undue hardship on the employer.

Several new and expanded paid family leave programs signed into law this month present employers with administrative challenges and concerns about business productivity.

California

California’s Paid Family Leave (“PFL”) program, which took effect in 2004, was the first of its kind in the nation. Funded by employee contributions to the State Disability Insurance program, and administered through that program, PFL in California provides employees with partial wage replacement (currently 55%, up to a weekly maximum of $1,104 in 2015) for a period of up to six (6) weeks in order to bond with a new child, or to care for a parent, child, spouse or domestic partner with a serious health condition. This wage-replacement program does not guarantee job protection, so normally it is taken concurrently with job-protected leave under the federal Family and Medical Leave Act (“FMLA”) or its California analog, the California Family Rights Act.

What should an employer do when a pregnant employee has used all of her allotted leave under CFRA (the California Family Rights Act) and PDLL (Pregnancy Disability Leave Law) but is still not yet able to return to work? Following the appellate court’s recent decision in Sanchez v. Swissport, Inc., No. B237761 (Cal. Ct. App. Feb. 21, 2013), the employer may be required to grant even more leave.