March 25, 2025
Beginning January 1, 2025, California employers are no longer able to require employees to use up to two weeks of paid time off (PTO) or vacation leave before receiving state-paid family leave (PFL) benefits. Previously, California employers could require employees to take up to two weeks of accrued vacation before employees could access PFL benefits. This change was a result of legislation, AB 2123, which was signed by Gov. Newsom on September 29, 2024.
Employers should carefully review their policies concerning extended leaves of absence, vacation (or PTO), and employee contributions for benefits to see whether and how changes made by the new requirements might affect operations in 2025 and future years.