HR Alert

Reminder to San Francisco Employers: PPLO Phase-In Begins January 1, 2017

Supplemental Compensation May Be Required

The San Francisco Office of Labor Standards Enforcement (OLSE) is reminding employers of their responsibilities under the Paid Parental Leave Ordinance (PPLO).

Purpose and Scope
Effective January 1, 2017, the PPLO ordinance requires San Francisco employers with 50 or more employees to provide partial wage replacement to employees taking leave to bond with a new child under the California Paid Family Leave program. It requires such employers to provide the remaining portion of the employee's normal gross weekly wage ("Supplemental Compensation") during the six-week leave period.

On July 1, 2017, the ordinance's partial wage replacement requirement expands to employers with 35 or more employees, and on January 1, 2018, to employers with 20 or more employees.

Supplemental Compensation
During the leave period, covered employers are required to provide supplemental compensation in an amount such that the California Paid Family Leave compensation plus the supplemental compensation equals but does not exceed 100% of the employee's gross weekly wage. Click here for additional information on calculating the amount of Supplemental Compensation.
Use of Unused, Accrued Vacation Leave'''
To be eligible to receive supplemental compensation, an employee must agree to allow the employer (if the employer so chooses) to use up to two weeks of the employee's unused, accrued vacation leave to help satisfy the employer's obligation to pay supplemental compensation during the leave period.

Notice and Recordkeeping
The OLSE is expected to publish and make available to covered employers (in all languages spoken by more than 5% of the San Francisco workforce) a notice suitable for posting in the workplace, informing employees of their rights under the law. Every covered employer must post this notice in English, Spanish, Chinese, and any language spoken by at least 5% of the employees at the workplace or job site.

Covered employers must retain records documenting supplemental compensation paid to employees for a period of 3 years.

Click here for additional information about the PPLO and recent amendments to the law.

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