California Advances Worker Protections with AB 2123 and SB 1090
California has long been a leader in progressive labor policies, and the recent enactment of Assembly Bill 2123 (AB 2123) and Senate Bill 1090 (SB 1090) further cements its commitment to supporting workers during critical moments in their lives. These laws, effective January 1, 2025, introduce significant enhancements to the Paid Family Leave (PFL) and State Disability Insurance (SDI) programs, offering greater financial stability and flexibility for employees across the state.
Understanding AB 2123: Eliminating Vacation Leave Requirements
AB 2123 eliminates a long-standing requirement that allowed employers to mandate the use of up to two weeks of accrued vacation leave before employees could access Paid Family Leave benefits. This change empowers workers to retain their vacation leave for personal use, rather than depleting it during family caregiving or bonding periods.
The PFL program provides partial wage replacement to employees who need to take time off to bond with a new child or care for a seriously ill family member. Under the previous law, employees often faced the difficult choice of using up their vacation time or losing income while waiting for PFL benefits to begin. AB 2123 removes this dilemma, enabling employees to focus on their families during critical times without financial or logistical burdens.
This legislative shift reflects California’s recognition of the importance of work-life balance and the value of preserving vacation time for its intended purpose: rest and rejuvenation. Employers are encouraged to review and update their leave policies to ensure compliance with the new requirements.
Exploring SB 1090: Enhanced Wage Replacement and Accessibility
SB 1090 significantly improves the SDI and PFL programs by increasing wage replacement rates, expediting benefit payments, and allowing advance filing of claims. These changes are designed to provide more comprehensive support to workers, particularly those with lower incomes who are most vulnerable during periods of disability or family leave.
Key Provisions of SB 1090:
Increased Wage Replacement Rates: As of January 1, 2025, the wage replacement rates for SDI and PFL benefits have risen from the previous 60%-70% of a worker’s income to 70%-90%, depending on earnings. This adjustment aims to reduce financial stress for workers, making it more feasible to take leave without jeopardizing household stability.
Advance Filing of Claims: Workers can now file claims up to 30 days before their anticipated first day of disability or leave. This proactive approach minimizes administrative delays, ensuring that benefits are available when needed most.
Faster Benefit Payments: The Employment Development Department (EDD) is required to issue initial payments within 14 days of receiving a properly completed claim or as soon as eligibility begins. This guarantees quicker access to funds, reducing the gap between the onset of leave and receipt of benefits.
Simplified Benefit Calculation: For workers earning below $722.50 per quarter, a flat weekly benefit of $50 is provided. For those earning above this threshold, benefits are calculated as 70%-90% of the worker’s highest quarterly earnings, capped at $1,681 weekly for 2025. This tiered approach ensures equitable support across income levels.
Combined Impact on Workers and Employers
Together, AB 2123 and SB 1090 represent a significant step forward in California’s efforts to create a supportive environment for workers during personal or family challenges. By eliminating the vacation leave requirement, AB 2123 provides greater autonomy and flexibility, while SB 1090’s enhancements to wage replacement and claim processing streamline the process of accessing benefits.
For employees, these changes mean:
Increased financial security during family or medical leave.
Greater flexibility to retain vacation time for leisure and rest.
Quicker access to much-needed funds.
For employers, the laws emphasize the importance of clear communication and policy updates. Employers must ensure their leave policies align with the new regulations and inform employees about these changes to foster a compliant and supportive workplace.
Moving Forward in 2025
With these laws now in effect as of January 1, 2025, both workers and employers should actively adapt to the new landscape. Workers are encouraged to familiarize themselves with the updated benefits and consider how they might use these resources. Employers, meanwhile, should update leave policies, train HR staff, and communicate the changes to their teams.
California’s adoption of AB 2123 and SB 1090 reflects a broader commitment to supporting the well-being of its workforce. By reducing financial and administrative barriers to taking leave, these laws allow workers to prioritize what matters most—their health and families—without compromising their financial security or workplace relationships. This employee-friendly approach serves as a model for other states seeking to enhance labor protections and promote economic resilience.
Emily Landis
SLOCEA Executive Director