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California Expands Family Leave and Disability Benefits

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For years, workers in California struggled with limited support when faced with major life events like caring for a loved one or recovering from illness. Many couldn’t afford to take the time they needed. To address this issue, Governor Newsome implemented California Paid Family Leave (PFL) and disability benefits increases, which took effect on January 1, 2025. This update impacts more than 18 million employees, providing stronger protections during some of life’s most challenging moments. Here’s a closer look at employment law changes in 2025, who qualifies, and how these benefits work.

What’s Changing in California’s Paid Family Leave Law for 2025?

Starting January 1, 2025, eligible California workers will see a major boost in income replacement under the State Disability Insurance (SDI) short-term disability and Paid Family Leave (PFL) coverages. These employee benefits now replace a larger portion of an employee’s wages, an increase from the previous 60% to 70% cap. Here’s an overview of the changes:
  • Higher benefit rates for 2025 claims. Starting January 1, 2025, workers earning less than $63,000 annually will receive up to 90% of their regular pay, while higher earners will receive up to 70%.
  • Longer disability coverage. Eligible workers can now access up to 52 weeks of disability benefits, offering more time to recover or manage health needs.
  • Paid family leave unchanged. Workers can still take up to 8 weeks of paid leave to bond with a child or care for a loved one.
  • New rates apply in 2025. The increased benefit rates only apply to claims filed on or after January 1, 2025. If you received benefits in 2024, the same rate will continue without an increase.
With the new family caregiving benefits and income replacement guidelines, California workers can take the time they need during important life events. It reduces the financial burden placed on families, allowing them to focus on caregiving or recovery without choosing between their loved ones and their jobs.

Who Benefits from the New Labor Law Protections?

California’s expanded benefits support workers in various life circumstances. Employees in the following situations are covered under the new workplace rights laws:  
Group How They Benefit Examples
New Parents Receive PFL benefits to bond with a newborn, adopted, or foster child. A mother taking time off to recover from childbirth or a father bonding with a newborn.
Family Caregivers Financial support through PFL to care for a seriously ill family member. A worker taking leave to care for a parent recovering from surgery or a spouse with cancer.
Military Family Paid leave via PFL to support a family member in the U.S. armed forces deploying overseas. A sibling assisting with household tasks or organizing support for a deployed loved one.
Individuals With Disabilities Disability Insurance provides payments to those unable to work due to a non-work-related illness, injury, or pregnancy. An employee taking time off to recover from knee surgery or manage a high-risk pregnancy.

How To Apply for PFL and DI Benefits

For eligible employees, applying for benefits is a straightforward process that requires specific steps based on the type of claim:

  • Paid Family Leave. Submit your application online through the Employment Development Department (EDD) website or by mail using the Claim for Paid Family Leave form. Be prepared to provide documentation, such as proof of a family member’s serious illness, military deployment details, or birth/adoption records, depending on your situation.
  • Disability insurance. Apply online through the EDD portal or submit a paper Disability Insurance Claim form. Along with the application, you must include a medical certification from your healthcare provider that confirms your inability to work due to a non-work-related illness, injury, or pregnancy-related condition. Ensure the form is fully completed to avoid delays in processing your claim.

Potential Issues for Workers in Receiving Benefits

While these benefit changes expand workers’ rights in California, you may encounter challenges when applying for or receiving payments. Some of the most common issues include:

  • Application delays. Missing documentation, such as medical certifications or high demand for benefits, can result in longer processing times and delayed payments.
  • Job protection confusion. PFL provides wage replacement, but workers may mistakenly assume it guarantees job security. However, job protections are covered under separate laws like the Family and Medical Leave Act (FMLA) or the California Family Rights Act (CFRA).
  • Income calculation errors. Errors in wage reporting or misunderstandings about the base period can result in incorrect payment amounts.
  • Employer retaliation. Despite legal protections, some employers may retaliate against workers who take leave by reducing hours, demotions, or even wrongful termination.
  • Failure to notify employees. Employers might not inform workers of their rights under PFL or DI, such as options for pregnancy-related conditions, leading to missed opportunities to apply for benefits.
  • Employer noncompliance with disability laws. Some employers may refuse to engage in the legally required interactive process to accommodate disabled workers, making it difficult to return to work after taking leave.
  • Disputes over eligibility. Employers may challenge an employee’s eligibility for leave or benefits, creating additional stress and delays in receiving payments.

Denied Benefits? Here’s How To Fight for Your Rights

If your benefits under California’s new disability and parental leave laws are denied, take these steps to challenge the decision and protect your rights:

  • File a complaint with the EDD. Start by contacting the Employment Development Department (EDD) to request a review of the denial within 30 days of receiving the decision. Provide any additional documentation or details that may support your case.
  • Consult an employment attorney. If your issue isn’t resolved, seek legal assistance for workers by contacting a knowledgeable California employment lawyer. They can explain your full rights, represent you during disputes or appeals, and ensure your employer takes the appropriate steps, like accommodating your disability when you return to work.
  • Report employer violations. If your employer retaliates, denies your job protection, or fails to follow the law, file a complaint with the Department of Fair Employment and Housing (DFEH). An employment attorney can also help you throughout this process.

Know Your Rights Under California’s New Benefits Laws

California’s expanded family leave and disability benefits provide critical support for millions of workers, addressing financial challenges during life’s most important moments.

Understanding your rights under these new laws ensures you can access the support you deserve. If you encounter issues with benefits or compliance, work with an experienced employment attorney to protect your rights and hold employers accountable.

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Edgar Manukyan

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