Starting January 1, 2025, under A.B. 2123, California employers will no longer be 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, this practice helped employers manage employee leave and prevent additional vacations after extended absences.
The PFL program provides up to eight weeks of wage replacement for employees who take time off to care for family members, bond with a new child, or assist during a military deployment.
Next Steps
Employers should review and update their PTO/vacation and leave policies and procedures to reflect the changes in PFL usage starting in 2025. It is also recommended that employers work with their legal counsel to understand how this change interacts with other leave laws, such as the Family and Medical Leave Act (FMLA) or California Family Rights Act (CFRA).
