California increases paid family leave and disability benefits to historic levels

LOS ANGELES (KABC) -- A new California law aims to ease the financial burden during some of life's biggest transitions and challenges.

This year, paid family leave and disability benefits increased to historic levels.

"Previously, most workers would only receive 60% of their income," explained Katherine Wutchiett, a senior staff attorney at the nonprofit organization, Legal Aid At Work.

"The dream of being able to take care of your baby, newborn baby, or being able to take care of a family member that's ill, you couldn't do it," said California Sen. María Elena Durazo (D-Los Angeles.)

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Under the new law authored by Durazo, eligible California workers can now receive between 70% and 90% up to a cap.

"As a mom of two who just recently had a baby, I think increasing it to 90% is really important," said Savannah Powell, who also stressed parental leave should be available for a longer period of time. "Families need that to stay afloat."

Under the new law, those who make about 70% of the state's average weekly wage -- about $63,000 or less annually -- will receive 90% of their income.

"Folks who make more than that will receive 70% to 90% of their income," said Wutchiett.

The benefits apply to eligible workers filing for state disability insurance, or paid family leave. That includes those who may be navigating military deployment, adoption or caring for a seriously ill family member.

"We've got, in California, 1.3 million individuals that are caregivers," said Gloria Crockett, the regional vice president and executive director for the California, Southland chapter of the Alzheimer's Association.

The organization did not take a position on the bill.

Part of what the law does is remove a cap that allowed higher income earners to stop contributing to the fund for these state benefits.

"These are all inequities that we identified and we said, 'We have to fix this,'" said Durazo.

Legal Aid At Work is one of the organizations that co-sponsored the bill.

Wutchiett explained that while the increase applies only to claims filed beginning in 2025, there are some options.

"If, for instance, somebody hasn't applied yet, and maybe they started taking time off from work in the last week of December, they could make the decision to date their claim just starting in January," she said.