California: San Francisco shortens parental leave eligibility period

At a glance

• San Francisco has amended its Paid Parental Leave Ordinance (PPLO), reducing the length of service eligibility requirement for employer-paid parental leave benefits from 180 days to 90 days.
• The ordinance applies to employers with 20 or more employees worldwide and covers eligible employees who perform a significant portion of their work in San Francisco.
• Employers with 100 or more employees may continue applying the 180-day service requirement through December 31, 2026, while employers with 20 to 99 employees may continue applying it through December 31, 2027.
• The revised eligibility period may affect leave policies, eligibility procedures, payroll processes, and employee communications.

San Francisco recently finalized amendments to its PPLO, expanding access to employer-paid parental leave benefits by reducing the length of service eligibility requirement for covered employees from 180 days to 90 days.

The PPLO applies to employers that regularly employ 20 or more employees worldwide, regardless of where those employees are located. Covered employees generally include those who work at least eight hours per week within San Francisco, perform at least 40% of their total weekly working hours within the city, and qualify for California Paid Family Leave (CA PFL) benefits for bonding with a new child. The coverage requirements continue to apply to part-time and temporary workers who satisfy these criteria.

The amendments establish transition periods based on employer size. Employers with 100 or more employees may continue applying the 180-day service requirement through December 31, 2026, while employers with 20 to 99 employees may continue applying the 180-day requirement through December 31, 2027. Following the expiration of these transition periods, the 90-day eligibility requirement will apply to all covered employers.

The amendments do not alter the overall structure of the PPLO. San Francisco’s PPLO operates alongside CA PFL, which provides partial wage replacement to eligible employees. San Francisco’s PPLO requires covered employers to provide supplemental payments to eligible employees receiving CA PFL benefits for bonding with a new child, equal to the difference between the employee’s CA PFL benefit amount and the employee’s normal gross weekly wages. This requirement is subject to a maximum employer contribution, so the employee receives up to 100% of their weekly wages.

To promote compliance with the amended PPLO, employers are encouraged to continue verifying employee eligibility, confirming entitlement to CA PFL benefits, calculating any required wage supplementation, and retaining appropriate supporting documentation.

Employers with San Francisco-based employees may also wish to review their parental leave policies, eligibility criteria, payroll processes, and internal procedures to ensure they are prepared for the shortened qualification period and the phased implementation of the new rules.

For more information, please contact the authors.