SB 951

Bill Subjects

Abstract

(1) Existing unemployment compensation disability law requires workers to pay contribution rates based on wages received in employment, for payment into the Unemployment Compensation Disability Fund, a special fund in the State Treasury. Under existing law, those funds are continuously appropriated for the purpose of providing disability benefits and making payment of expenses in administering those provisions. Existing law authorizes the Director of Employment Development to increase or decrease the rate of worker contributions, up to a certain amount, if the director determines the adjustment is necessary to reimburse the Unemployment Compensation Disability Fund for disability benefits paid or estimated to be paid or to prevent the accumulation of funds in excess of those needed to maintain an adequate fund balance. Under existing law, the remuneration of a worker over a specified amount is not subject to the contribution levels described above. Under existing law, specifically, the worker contribution provision does not apply to that part of a worker's remuneration which is paid after remuneration with respect to employment equal to 4 times the maximum weekly benefit for each calendar year specified, multiplied by 13 and divided by 55%, has been paid to an individual by an employer. This bill would remove that limitation on January 1, 2024. (2) Existing unemployment compensation disability law provides a formula for determining benefits available to qualifying disabled individuals. Under existing law, for periods of disability commencing on and after January 1, 2018, but before January 1, 2023, (A) if the amount of wages paid an individual during the quarter of their disability base period in which those wages were highest is less than $929, the weekly benefit amount is $50, (B) if the amount of wages paid to the individual during the quarter of their disability base period in which those wages were highest is $929 or more, and is less than 13 of the amount of the state average quarterly wage, the weekly benefit amount is 70% of those wages divided by 13, and (C) if the amount of wages paid an individual during the quarter of their disability base period in which those wages were highest is 13 of the amount of the state average quarterly wage or more, the weekly benefit amount is the greater of 23.3% of the state average weekly wage or 60% of those wages divided by 13. Under existing law, for periods of disability commencing on and after January 1, 2023, if the amount of wages paid an individual during the quarter of their disability base period in which those wages were highest exceeds $1,749.20, the weekly benefit amount is 55% of those wages divided by 13. Under existing law, a benefit that is not a multiple of $1 shall be computed to the next higher multiple of $1, and the amount of the benefit is prohibited from exceeding the maximum workers' compensation temporary disability indemnity weekly benefit amount. Under existing law, the maximum amount of benefits payable to an individual during any one disability benefit period is 52 times their weekly benefit amount, as specified. This bill would revise the formulas described above by extending the formula applicable for periods of disability commencing on and after January 1, 2018, but before January 1, 2023, through periods of disability commencing before January 1, 2025. The bill would revise the formula for periods of disability commencing after January 1, 2025, by redefining the weekly benefit amount to be equal to (A) $50 if the amount of wages paid an individual during the quarter of their disability base period in which those wages were highest is less than $722.50, (B) the greater of 70% of wages divided by 13, but not exceeding the maximum workers' compensation temporary disability indemnity weekly benefit amount, or 63% of the state average weekly wage, if the amount of wages paid an individual during the quarter of their disability base period in which those wages were highest is more than 70% of the state average quarterly wage, and (C) 90% of wages divided by 13, but not exceeding the maximum workers' compensation temporary disability indemnity weekly benefit amount, if the amount of wages paid an individual during the quarter of their disability base period in which those wages were highest is $722.50 or more, but 70% or less than the state average quarterly wage. (3) Existing law establishes, within the above state disability insurance program, a family temporary disability insurance program, also known as the paid family leave program, for the provision of wage replacement benefits for up to 8 weeks to workers who take time off work to care for a seriously ill family member or to bond with a minor child within one year of birth or placement, as specified. Existing law defines "weekly benefit amount" for purposes of both employee contributions and benefits under this program to mean the amount of weekly benefits available to qualifying disabled individuals pursuant to unemployment compensation disability law, calculated pursuant to specified formulas partly based on the applicable percentage of the wages paid to an individual for employment by employers during the quarter of the individual's disability base period in which these wages were highest, but not to exceed the maximum workers' compensation temporary disability indemnity weekly benefit amount established by the Department of Industrial Relations. This bill would revise the formula for the weekly benefit amount under the family temporary disability insurance program to conform to the changes for periods of disability commencing before January 1, 2025. The bill would also revise the formula for periods of disability commencing on or after January 1, 2025, by redefining the weekly benefit amount to be equal to (A) $50 if the amount of wages paid an individual during the quarter of their disability base period in which those wages were highest is less than $722.50, (B) the greater of 70% of wages divided by 13, but not exceeding the maximum workers' compensation temporary disability indemnity weekly benefit amount, or 63% of the state average weekly wage, if the amount of wages paid an individual during the quarter of their disability base period in which those wages were highest is more than 70% of the state average quarterly wage, and (C) 90% of wages divided by 13, but not exceeding the maximum workers' compensation temporary disability indemnity weekly benefit amount, if the amount of wages paid an individual during the quarter of their disability base period in which those wages were highest is $722.50 or more, but 70% or less than the state average quarterly wage. (4) By providing for the deposit of additional contributions in, and by authorizing an increase in disbursements from, the Unemployment Compensation Disability Fund, this bill would make an appropriation.