California's Democratic Governor Jerry Brown signed a legislation on Monday increasing the money received by new parents during family leave. This comes after the state has approved the $15 minimum wage in the state.
According to Salon, the new legislation is part of the wave in California that aims to expand labor policy reforms in an attempt to address income inequality. The governor said in a statement that the legislation called AB908 will create a more decent and emphatic kind of community. He added that the bill will provide more assistance to the state's lowest earners who are on family leave and help correct the growing income wage gap in California.
Brown had to postpone the signing of the family leave bill last month as he was busy negotiation with labor unions regarding the state's minimum wage. It has been approved just last week that the minimum wage will be increased to $15 an hour and will take effect on 2022.
President Barack Obama reacted on the expanded family leave law via a written statement. He said this will ensure California workers peace of mind and he promised that he will continue pushing federal lawmakers to provide such basic security, Los Angeles Times reported. He added that the Congress should catch up to California by "acting to guarantee paid family leave to all Americans."
California is one of the four states in the U.S. to mandate pay during family leave. On top of this, workers are allowed to take up to six week off work to take care of a new child or a sick family member and still receive 55 percent of their wage. The latest measure signed by Brown will increase it to 60 percent and will start in 2018, Yahoo News reported. The legislation will also eliminate the seven-day waiting period for receiving benefits.
The paid family leave program is funded by worker contributions and is operated by the Employment Development Department. As per analysis, it is estimated that the increased paid leave will cost the funding around $348 million in 2018 and $587 million annually in 2021.
