Dear Valued Client,
As the end of the year approaches, we would like to inform you of a law taking effect on January 1, 2012. Under the new state law SB 299, California employers with five or more employees will be required to continue to maintain and pay for health coverage under a group health plan for an eligible female employee who takes Pregnancy Disability Leave (PDL) up to a maximum of four months in a 12-month period.
The benefits are at the same level and under the same conditions as if the employee had continued working during the leave period. The employee must continue to pay her share of the premium, unless the employer covers the entire premium.
Under current law, employers are only required to provide benefits for pregnancy leave to the same extent and for the same length of time as they would for other temporary disability leaves. For example, if the employer was covered by the federal Family and Medical Leave Act, the employer had to provide continuing coverage for up to 12 weeks during a maternity leave covered by the FMLA. However, if the employee was still disabled by her pregnancy during weeks 13-16, the employer was required to provide benefits only to the same extent that it would for other temporary disabilities. Now, the employer will be required to provide continuing coverage regardless of how it treats other temporary disabilities.
This new legislation was signed into law by Governor Jerry Brown and was enacted along with companion legislation (SB 222/AB 210) mandating that all individual health insurance policies must provide maternity coverage effective July 1, 2012.
Please contact our office if you have any questions.
We wish you a happy holiday season!