Get All Access for $5/mo

San Francisco Becomes First U.S. City to Mandate Paid Parental Leave The unanimously approved law allows parents to receive their full salary for six weeks, beginning in 2017.

By Reuters

This story originally appeared on Reuters

Pexels

San Francisco became the first U.S. city to mandate six weeks of fully paid parental leave, requiring employers to shoulder much of the cost and exceeding federal and state benefit rules for private-sector employees, a city supervisor said on Tuesday.

The law, unanimously approved by the San Francisco Board of Supervisors, grants six-week leave for fathers and mothers working for companies with 20 or more employees, nearly doubling the pay they are now eligible to collect under California law.

"Our country's parental leave policies are woefully behind the rest of the world, and today San Francisco has taken the lead in pushing for better family leave policies for our workers," Supervisor Scott Wiener said in a statement.

Better benefits for parents are part of campaigns across the nation aimed at combating rising income inequality. California's governor on Monday signed into law a bill raising the state's minimum wage from $10 to $15 an hour by the year 2023.

San Francisco already offers 12 weeks of fully paid parental leave to its approximately 30,000 city employees.

On Monday, New York's governor signed a bill granting 12-week paid family leave for private-sector workers that will phase in by 2021. California and New Jersey provide up to six weeks of partial pay, while Rhode Island offers four, according to the National Conference of State Legislatures.

Under the San Francisco policy, effective in 2017, employers must pay 45 percent of wages for as long as six weeks. The remaining 55 percent of weekly wages comes from a worker-funded state disability program.

Payments are calculated as a percentage of wages up to an annual ceiling of $106,740.

Supporters said it will enable new parents to spend more time with their babies, while opponents said it would hurt profits and cost jobs.

In 2014, about 5,000 San Francisco residents accessed the state's program for paid family leave for an average of 5.4 weeks, according to state data.

Nationally, 12 percent of workers receive paid family leave through their employers, Wiener's office said.

Technology companies in Silicon Valley have increased family leave benefits to help recruit and retain employees. Netflix Inc. provides up to a year paid, while Facebook Inc. provides four months and Microsoft Corp. offers eight weeks.

Federal law provides up to 12 weeks of unpaid leave to care for a newborn or adopted child for employees at companies with 50 or more workers.

(By Eric M. Johnson; Reporting by Eric M. Johnson in Seattle; Editing by Sara Catania and Jonathan Oatis)

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Starting a Business

How to Find the Right Programmers: A Brief Guideline for Startup Founders

For startup founders under a plethora of challenges like timing, investors and changing market demand, it is extremely hard to hire programmers who can deliver.

Diversity

'I'm Gay': I Opened Up About My Sexual Orientation On Stage at a Work Event — And My Company Reacted In The Most Perfect Way.

This Pride Month, I reflect on my own coming-out journey at work and the steps that need to be taken toward creating inclusive and empowering workplaces for LGBTQ+ individuals. Organizational leaders play a crucial role in driving continued growth and improvement.

Starting a Business

Monetize Your Expertise — The Ultimate Guide to Creating and Selling Online Courses and eBooks

Unlock the secrets to transforming your knowledge into income with this comprehensive guide on creating and selling online courses and eBooks.

Side Hustle

This 23-Year-Old Started a 'Simple' Side Hustle Using Items She Already Owned — Then She Earned Nearly $60,000 and Made It Her Full-Time Gig

Angelina Licari first tried out the side hustle as a high school student — then went all-in after graduating college.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business Solutions

Give Dad Windows 11 Pro and Microsoft Office Pro 2021 for Just $60

This Father's Day, give Dad a more productive PC setup.