California continues to lead the way in expanding employee leave protections with the recent signing of Senate Bill (SB) 590. This new legislation broadens the eligibility for wage replacement benefits under the state’s Paid Family Leave (PFL) program, reflecting the evolving structure of modern households and caregiving relationships.
Understanding the Change: What is a “Designated Person”?
Under current California law, employees can already take unpaid, job-protected leave to care for a “designated person” under the California Family Rights Act (CFRA). However, state-funded PFL wage replacement benefits were previously limited to care for specific family members, such as a child, parent, spouse, or domestic partner.
SB 590 closes this gap by extending PFL benefits to employees who take time off to care for a seriously ill designated person. The law defines a “designated person” as:
- Any individual related by blood.
- An individual whose association with the employee is the equivalent of a family relationship.
Key Provisions and Timelines
While SB 590 has been signed into law, employers should note the following implementation details:
- Effective Date: The law generally takes effect on January 1, 2026, but the expansion of PFL benefits specifically commences on July 1, 2028.
- Verification Requirements: When an employee requests PFL benefits to care for a designated person for the first time, they must identify the individual.
- Attestation: The employee must attest, under penalty of perjury, to the nature of the relationship, explaining how the person is related by blood or why the association is equivalent to a family relationship.
- Existing Limits: Employers may still limit an employee to one designated person per 12-month period for leave purposes.
Next Steps for Employers
To prepare for this transition and ensure ongoing compliance with California’s complex leave landscape, prior to the effective date, employers should take the following actions:
- Review and Update Leave Policies: Audit your current employee handbook and leave-of-absence policies to ensure they align with the expanded definitions of “designated person” for both unpaid leave (CFRA) and future PFL benefits.
- Update Administrative Procedures: Develop or update forms and processes for employees to identify a designated person, including the required attestation under penalty of perjury for PFL claims.
- Train Managers and HR Personnel: Educate your leadership and human resource team on the broader definition of family. Ensure they understand that a “designated person” does not require a legal or biological tie and that medical certifications for these individuals must be handled with strict confidentiality.
- Coordinate with Payroll and Third-Party Administrators: Ensure your leave-tracking systems and any third-party administrators are prepared to code and process these leaves correctly as the July 2028 benefit date approaches.
