San Francisco Enacts Paid Parental Leave

Executive Summary

Overview: The San Francisco Board of Supervisors has approved an ordinance requiring employers to provide employees with up to 6 weeks of fully paid parental leave for the birth or adoption of a child. 

Coverage: Employer coverage and effective dates depend on the size of the employer as follows:

The ordinance indicates that the number of employees is determined “regardless of location.”  In other words it does not appear that employees must work in San Francisco in order to be counted for purposes of employer coverage.  This issue will likely be clarified through future guidance from the city.

Action Required: Contact your Human Resources Business Partner if you have any questions regarding this update.

The Details

The new ordinance supplements the existing California Paid Family Leave program, which entitles eligible employees to receive leave paid at up to 55% of their salary for up to 6 weeks to care for newborns or newly adopted children.  The current state program is funded by employee contributions and administered through a state insurance fund. 

The San Francisco ordinance will require employers to privately fund the remaining 45% of an employee’s pay during the 6 week period.

Employees who work 8 hours or more per week and spend at least 40 percent of their work week within San Francisco boundaries will be eligible for the leave.  New employees will become eligible after they have worked for a company for 180 days.

We will notify clients when additional details and guidance regarding the new ordinance become available from the city.

ADP is committed to helping you meet your compliance challenges. For additional information about this or any other Human Resources compliance issue, please contact your HR Business Partner. 

This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal advice.