HR Hot Topic – CA Paid Family Leave Grants & Minimum Wage Updates OCHR
California Paid Family Leave Grants Available to Eligible Businesses
Eligible small businesses in California may now apply for grants up to $2,000 per employee utilizing California’s Paid Family Leave program (PFL).
These grants, funded by the California Employment Training Panel and California Labor and Workforce Development Agency, are geared toward helping small businesses offset the increased costs that may arise when an employee is out on leave, such as cross-training existing staff, and hiring and training new and/or temporary employees.
California’s PFL program provides eligible employees with up to 8 weeks of wage replacement benefits when the employee is off work for certain qualifying reasons, such as to bond with a new child or to care for a seriously ill family member.
$2,000 and $1,000 Grants Available
Grants are available in the following amounts:
- Businesses with 51–100 employees may receive up to $1,000 per employee utilizing Paid Family Leave.
- Businesses with 1–50 employees may receive up to $2,000 per employee utilizing Paid Family Leave.
To qualify, businesses must:
- Employ between 1 and 100 employees;
- Be registered to do business in the State of California;
- Be in an active status with the office of the California Secretary of State; and
- Have an active California Employer Account Number under which employees are listed for payroll.
For more information or to apply for a grant, visit CaliforniaPFL.com.
$15.50/Hour Minimum Wage for All California Employers Coming
It’s official — the California minimum wage will increase to $15.50 per hour for all employers effective January 1, 2023, as California Director of Finance Keely Martin Bosler has officially certified the 3.5 percent increase. Small businesses (those with 25 or fewer employees) will be hit hard since the required minimum wage will jump from the current $14 per hour to $15.50 per hour.
Once the minimum wage reaches $15 per hour, as it did in January for employers with 26 or more employees, the California Director of Finance must annually determine and certify to the governor and Legislature whether the minimum wage must be adjusted for inflation and calculate the increase, which is the lesser of 3.5 percent or the rate of change in inflation.
Between July 1, 2021, and June 30, 2022, the California Department of Finance calculates the U.S. Consumer Price Index for Urban Wage Earners and Clerical Workers (U.S. CPI-W) increased 7.9 percent compared to the previous 12-month period. California Labor Code section 1182.12 requires that when the rate of increase in inflation exceeds 7 percent, the minimum wage for all employers — not just those with 26 or more employees — must be set to the same amount.
Remember, the minimum wage increase also increases the minimum salary for exempt employees in California. Beginning January 1, 2023, the new exempt salary threshold will be $64,480 per year ($5,373.33 per month) for all employers, regardless of size.
Sources: California Paid Family Leave Grants Available to Eligible Businesses: https://advocacy.calchamber.com/2022/08/11/california-paid-family-leave-grants-available-to-eligible-businesses/?utm_campaign=Daily%20Headlines%2008-11-22%20(2)&utm_source=Acoustic&utm_medium=Email&spMailingID=71948481&spUserID=NTkzODk1NjM0MjYxS0&spJobID=2250944376&spReportId=MjI1MDk0NDM3NgS2
$15.50/Hour Minimum Wage for All California Employers Coming: https://hrwatchdog.calchamber.com/2022/08/15-50-hour-minimum-wage-for-all-california-employers-coming/