What paid family and sick leave does California require in 2026?
Four stacked programmes: 40 hours Paid Sick Leave, 8 weeks Paid Family Leave at 70–90% wages, 12 weeks CFRA job protection, and up to 4 months Pregnancy Disability Leave. CFRA and PDL kick in at five employees, not fifty.
· California, United States guide
Photo: Rihards Sergis via Unsplash · Los Angeles, California
If you treat California paid leave the way you treat federal FMLA, you will be short on protection from your fifth employee on. Not might. Will.
California stacks four programmes on top of federal law. From 1 January 2026, the maths reaches roughly seven months of protected leave for a single pregnancy at a 5-person Bay Area team. Federal FMLA gives the same employee 12 weeks at a 50-person team.
Most US employers have heard of CFRA and PFL. Fewer know the threshold drops to five, not fifty, and that you owe wage replacement on every paycheque whether you ship a policy or not.
This page covers the four programmes, the 5-employee trap, and the city ordinances that stack on top of the state floor.
California stacks four leave laws, not one
Four California programmes apply on top of federal law: Paid Sick Leave (PSL), Paid Family Leave (PFL), the California Family Rights Act (CFRA), and Pregnancy Disability Leave (PDL).
A single California pregnancy can trigger all four at once.
Sarah is a software engineer at a 6-person Bay Area startup. She gets pregnant. She gets PSL from day one, PFL from her first paycheque, CFRA from the 5-employee threshold, and PDL for any medically certified disability. Her employer who shipped a national FMLA-only policy is non-compliant on three of the four.
The four California programmes at a glance
| Programme | Statute | Employer threshold | Duration | Paid? |
|---|---|---|---|---|
| Paid Sick Leave (PSL) | Cal Lab Code §§ 245-249 (SB 616, 2023) | Any employer, 1 employee, 30+ days in CA | 40 hours / year accrued | Yes, at regular rate |
| Paid Family Leave (PFL) | Cal Unemp Ins Code § 3300 et seq. | Universal (all employers covered by SDI) | Up to 8 weeks / 12 months | Yes, 70-90% wages, max $1,765/wk |
| California Family Rights Act (CFRA) | Cal Gov Code § 12945.2 (SB 1383, 2021) | 5+ employees | 12 weeks job-protected / 12 months | Unpaid (use PFL for wage replacement) |
| Pregnancy Disability Leave (PDL) | Cal Gov Code § 12945; 2 CCR § 11042 | 5+ employees | Up to 4 months / pregnancy | Unpaid (use SDI for wage replacement) |
| Federal FMLA (floor) | 29 U.S.C. § 2601 | 50+ employees within 75 miles | 12 weeks / 12 months | Unpaid |
The headline mistake is the 50-employee assumption. An employer with 5 to 49 California employees has no federal FMLA obligation but a full CFRA and PDL obligation. A seven-person Bay Area engineering team runs under the same job-protection regime as a 700-person enterprise.
Once you cross five employees in California, every pregnancy and every serious health condition becomes a statutory case to administer. Not an HR policy choice.
How much paid sick leave does California require in 2026?
You give every California employee 40 hours of paid sick leave a year, accrued at 1 hour per 30 hours worked.
There is no headcount threshold. One employee working 30 days in California in a year triggers the rule.
The floor jumped from 24 to 40 hours on 1 January 2024. A national policy capped at 24 is non-compliant on every California payroll today.
40-hour PSL floor
effective
1 January 2024
, the floor jumped
| Rule | Detail | Source |
|---|---|---|
| Annual entitlement | 40 hours or 5 days per year | Cal Lab Code § 246 (as amended by SB 616, Stats. 2023, ch. 309) |
| Accrual rate | 1 hour per 30 hours worked | Cal Lab Code § 246(b) |
| Accrual cap | 80 hours / 10 days | Cal Lab Code § 246(j) |
| Annual use cap | 40 hours / 5 days per benefit year | Cal Lab Code § 246(j) |
| Carryover | Unused hours carry over up to 80-hour cap | Cal Lab Code § 246(d) |
| Front-load alternative | Grant 40 hours at start of year; no carryover required | Cal Lab Code § 246(e) |
| Pay-out at separation | Not required (unlike vacation under § 227.3) | Cal Lab Code § 246(g) |
| Designated-person care | Employee may identify one designated person per year | AB 1041 (Stats. 2022, ch. 748) |
| Threshold | Any employer, any size; 30 days worked in California | Cal Lab Code § 245.5(b) |
The covered uses are broader than you think
Marcus works the floor at a 6-employee LA retail shop. He uses his PSL for his own care, his husband's care, his mother's chemo, and (under recent additions) court time as a domestic-violence survivor. California's family definition reaches further than federal law: parent, child, spouse, registered domestic partner, grandparent, grandchild, sibling, and a designated person Marcus identifies once a year.
Front-load 40 hours and skip the tracking
The simpler administrative path: grant 40 hours on day one of the benefit year. No accrual maths, no carryover obligation. The price is paying out the full 40 to a January starter who leaves in March.
Three things catch out-of-state employers:
- No headcount minimum. Federal FMLA hits at 50. California PSL hits at one.
- Designated person. Marcus can name his uncle, a close friend, anyone. You cannot require proof of relationship.
- PTO substitution converts sick hours into payable wages. A combined PTO bank means unused sick time owes out at separation. Most employers keep them separate.
How does California Paid Family Leave (PFL) work in 2026?
Paid Family Leave, or PFL, gives eligible employees up to 8 weeks of wage replacement at 70 to 90 percent of regular wages.
The cap in 2026 is $1,765 a week. The state pays it from the SDI fund. Your payroll cash flow is undisturbed.
PFL does not hold the job. That comes from CFRA, FMLA, or PDL stacked on top.
| Benefit dimension | 2025 | 2026 |
|---|---|---|
| Maximum weeks of PFL | 8 weeks | 8 weeks |
| Wage-replacement rate, lower earners | Up to 90% | Up to 90% |
| Wage-replacement rate, higher earners | 70% | 70% |
| Maximum weekly benefit | $1,681 | $1,765 |
| State Average Weekly Wage | $1,704 | $1,789 |
| Employee SDI contribution rate | 1.2% | 1.3% |
| SDI taxable wage cap | None | None (removed 1 January 2024 by SB 951) |
| Eligibility threshold | $300 in SDI-contributing wages in 18-month base period | Cal Unemp Ins Code § 3300 et seq. |
| Funding | 1.3% employee SDI deduction on uncapped wages | SB 951 (Stats. 2022, ch. 878) |
Sarah uses PFL the way it's designed to be used
Sarah earns $140,000 at her Bay Area startup. She takes 8 weeks of PFL bonding leave after her baby arrives. The EDD pays her $1,765 a week directly. Her employer's payroll runs unchanged through the period.
Most W-2 California workers clear the $300 earnings threshold on their first paycheque. Sarah can take 8 weeks in one block or split it across the 12-month window from the baby's arrival.
The three claim types
- Bonding, new child by birth, adoption, or placement, within 12 months of arrival.
- Care, for a seriously ill family member, on California's broad definition.
- Military assist, qualifying exigency for a family member on active duty.
The job-protection gap
If Sarah's startup had only 4 California employees, the PFL benefit would still pay her wages. But there would be no CFRA right (5-employee threshold), no FMLA right (50-employee threshold), and no PDL right unless she was medically certified disabled. Her employer could legally backfill the role and decline reinstatement.
The gap candidates don't realise exists until they need it. The gap competitive parental policies are designed to close.
CFRA triggers at five employees, not fifty
The California Family Rights Act, or CFRA, gives eligible employees 12 weeks of unpaid, job-protected leave per 12-month period.
The threshold is 5 employees. Ten times lower than federal FMLA's 50. Effective 1 January 2021.
Marcus works at a 6-employee LA retail co. His mother is dying. Under federal law, his employer owes him nothing. Under CFRA, the same employer owes him 12 weeks of job-protected time off and continuing health coverage. The owner who shipped an FMLA-only handbook just got it wrong.
| CFRA mechanic | California (CFRA) | Federal (FMLA) |
|---|---|---|
| Employer threshold | 5+ employees | 50+ employees within 75 miles |
| Leave length | 12 weeks per 12-month period | 12 weeks per 12-month period |
| Employee eligibility | 12 months tenure, 1,250 hours worked in prior year | Same |
| Family definition | Parent, child, spouse, registered domestic partner, parent-in-law, grandparent, grandchild, sibling, designated person | Parent, child, spouse only |
| Designated person | One non-family person per 12 months | Not available |
| Concurrent run with FMLA | Concurrent when both apply (12 weeks total, not 24) | Concurrent |
| Health insurance during leave | Continue at employer's normal contribution | Same |
| Paid? | Unpaid; pair with PFL for wage replacement | Unpaid |
| Statute | Cal Gov Code § 12945.2; SB 1383 (Stats. 2020, ch. 86); AB 1041 (Stats. 2022, ch. 748) | 29 U.S.C. § 2601 |
The PDL-then-CFRA stack is the foundation of California parental leave
For pregnancy, PDL and CFRA do not run concurrently. They stack.
An employee disabled by pregnancy takes up to 4 months of PDL for the medically certified disability and recovery. When the PDL period ends, she takes up to 12 weeks of CFRA for baby bonding. Total protected leave: roughly seven months at any employer with 5+ California employees.
Federal FMLA gives the same employee a single 12-week block covering both the disability and the bonding combined. At 50+ employees only.
CFRA holds the job, PFL pays the wages
An employee on CFRA typically files a PFL claim and receives the 70-90% wage replacement for the same weeks. CFRA is the load-bearing wall. PFL is the wage cheque. Your payroll obligation during CFRA is health-insurance continuation only.
What is California Pregnancy Disability Leave (PDL)?
Pregnancy Disability Leave, or PDL, gives an employee disabled by pregnancy, childbirth, or a related condition up to 4 months of job-protected leave per pregnancy.
The threshold is 5 employees. There is no tenure or hours-worked minimum. A day-three hire is eligible if she becomes disabled.
You continue paying group health at the same level for the full PDL period. Stricter than CFRA.
| Feature | Detail | Source |
|---|---|---|
| Duration | Up to 4 months (approx. 17.33 weeks) per pregnancy | Cal Gov Code § 12945(a)(1); 2 CCR § 11042(a) |
| Employer threshold | 5 or more employees | Cal Gov Code § 12926(d) |
| Minimum service | None, eligible from day one | 2 CCR § 11042(c) |
| Covered conditions | Severe morning sickness, gestational diabetes, preeclampsia, bed rest, postpartum recovery, any medically certified disability | 2 CCR § 11035 |
| Health-insurance continuation | Employer pays at same level and conditions throughout | Cal Gov Code § 12945(a)(2)(A) |
| Wage replacement | None (file SDI claim for 70-90% to weekly max $1,765) | Cal Unemp Ins Code § 2655 |
| Reinstatement | To same or comparable position; employer bears burden of non-PDL business reason | 2 CCR § 11043; FEHA |
| Stacking with CFRA | Sequential, not concurrent, PDL first (disability), CFRA after (bonding) | 2 CCR § 11093 |
Aria's PDL claim shows how the protections combine
Aria is a salaried marketing lead at a San Diego firm. Severe preeclampsia puts her on bed rest at 30 weeks. Her doctor certifies disability. She takes PDL for the remainder of her pregnancy and 6 weeks of postpartum recovery, roughly 10 weeks total.
During those 10 weeks: her employer continues paying her full health-insurance premium. The state pays her up to $1,765 a week from the SDI fund. When she's medically cleared, the PDL clock stops and she pivots to CFRA for baby bonding, another 12 weeks at 70-90% of her wages from PFL.
Total protected time off for this pregnancy: about 22 weeks. At a 50-employee FMLA-only employer, she would have got 12.
Refusal to reinstate is presumed unlawful
If you decline to reinstate Aria, the burden is on you to prove the non-PDL business reason. A layoff that would have eliminated her role regardless. A genuine restructure. The presumption tips against the employer. She can sue under FEHA for back pay, reinstatement, and punitive damages.
Which California cities require more paid sick leave than the state?
Six cities run their own ordinances on top of the state floor: San Francisco, Los Angeles, Oakland, Berkeley, San Diego, and Emeryville.
You apply whichever rule is most generous to the employee on each specific point. The most-generous test runs line by line, not whole-policy versus whole-policy.
An LA employee under a 40-hour national policy is short on the annual use cap (LA is 48). The same employee in San Diego is fine on annual use but short on accrual if the policy doesn't carry over to 80.
| Jurisdiction | Accrual rate | Cap (small employer) | Cap (large employer) | Source |
|---|---|---|---|---|
| San Francisco | 1 hour per 30 worked | 40 hours (<10 ee) | 72 hours (10+ ee) | SF Admin Code Ch. 12W |
| Los Angeles | 1 hour per 30 worked, or 48 hr front-load | 72 hours | 72 hours | LAMC § 187.04 (48-hr annual use cap) |
| Oakland | 1 hour per 30 worked | 40 hours (<10 ee) | 72 hours (10+ ee) | Measure FF (2014) |
| Berkeley | 1 hour per 30 worked | 48 hours (<25 ee) | 72 hours (25+ ee) | BMC Ch. 13.100 |
| San Diego | 1 hour per 30 worked | 80 hours | 80 hours | SDMC § 39.0101 et seq. |
| Emeryville | 1 hour per 30 worked | 48 hours (<56 ee) | 72 hours (56+ ee) | EMC Ch. 5-37 |
| California state floor | 1 hour per 30 worked | 80 hours | 80 hours | Cal Lab Code § 246 (40-hr annual use cap) |
Long Beach, Santa Monica, and unincorporated LA County run their own rules for specific industries (hotels, fast food). Sacramento, San Jose, and the broader Bay Area cities do not, state law applies.
Most California employers with multi-city workforces administer PSL as a tiered policy by work location, not a single national policy. The cleanest implementation is to set the company default at the most-generous combination across all locations you hire in.
How Teamed runs California leave end to end
Teamed becomes your legal employer of record in California for a flat $599 per employee per month.
You hire the person. We run the full leave stack: PSL accrual with city overlays, PFL claim handling with EDD, CFRA tracking at the 5-employee threshold, PDL administration with the mandatory health continuation, and the PDL-then-CFRA pregnancy sequence.
Zero FX mark-up. SDI deductions, ETT, and UI pass through at cost on every invoice.
What that looks like, day to day:
- PSL ledger from day one. 1-per-30 accrual or 40-hour front-load, whichever the policy elects. City overlay applies automatically by work location, an Oakland hire and a Los Angeles hire on the same payroll get different annual use caps without you tracking the difference manually.
- PFL claim concierge. When an employee files a PFL claim with the EDD, Teamed gathers the wage history, files the employer verification, and tracks the 8-week clock against the 12-month window. Your payroll runs unchanged because the state pays the wages, not you.
- CFRA eligibility monitoring. The 5-employee threshold is checked monthly. The moment you cross five California employees, CFRA notices switch on, posters update, and the eligibility determination process activates for every California hire.
- PDL with health continuation. When an employee is certified disabled by pregnancy, the 4-month clock starts and your health-insurance contribution runs at the same level as while working. The SDI claim runs in parallel for wage replacement. When the disability period ends, the CFRA bonding clock starts, no day of protected leave is lost in the transition.
- Local ordinance layer. SF, LA, Oakland, Berkeley, San Diego, and Emeryville each have their own posting, notice, and pay-statement requirements. The platform carries the local overlay so you hire in any California city without standing up a separate workflow.
Behind the platform sits a named US country specialist and an in-house HR specialist who knows the CFRA / PDL / PFL stack. When a California leave question comes in, you message the same person. No support tickets. No chatbot triage.
Contractor onboarding, EOR payroll, and entity graduation live on one platform. A California contractor who converts to W-2 keeps their record. That same employee can graduate from EOR to your own US entity without changing systems. One timeline. One platform.
When EOR is the right call (and when it isn’t)
EOR works while you're testing the California market, ramping a small remote team, or running 1–15 California hires alongside a larger US payroll elsewhere.
Once you have 15 or more California employees and predictable hiring ahead, the maths of running your own US entity starts to win. Teamed’s Crossover Calculator tells you the month the EOR model stops being right. The graduation conversation is built into the relationship.
The California paid-leave question lives or dies on the 5-employee threshold. Multi-state employers walk in assuming the FMLA-50 mental model and miss the fact that a seven-person Bay Area team triggers CFRA, PDL, and the PFL-funding mechanism on every employee. The compliance cost of getting it wrong is back pay, reinstatement, and FEHA damages. The cost of getting it right is a ledger and a city-overlay rule set you run once and inherit on every hire.
California stacks four leave laws and most employers only ship one of them.
The 50-employee FMLA model is the trap; CFRA and PDL hit at five and the four-month PDL plus twelve-week CFRA stack hits at seven months protected.
The retention conversation isn’t the voluntary policy, it’s whether you can administer the stack without missing a notice.
