California's New "Designated Person" Standards Expand

California’s New “Designated Person” Standards Expand

California often leads the way in employment law, and recent updates are no exception. As of Jan. 1, 2023, the introduction of “designated person” standards has expanded how employees can take leave under the California Family Rights Act (CFRA) and the Healthy Workplaces Healthy Families Act (HWHFA).

These new standards are something employers must be aware of, as they bring both flexibility and complexity to managing employee leave. Let’s break down what these changes mean, how they might impact your business, and how Mosey can help manage state compliance.

What Is a Designated Person?

A “designated person” may sound a bit vague, so here’s what it means. Under these new standards, employees can choose someone outside their immediate family as the person they’d like to care for during a leave of absence. It isn’t just limited to relatives.

Under the CFRA, a designated person is defined as someone related by blood or whose relationship with the employee is “equivalent to a family relationship.” Under the HWHFA, the rules are even broader. A designated person is simply someone the employee identifies when requesting paid sick leave — no blood or family ties are required.

This means that employees now have more freedom in choosing who they take leave to care for, whether it’s a close friend, neighbor, or someone they’re dating.

Why Do Designated Persons Matter for Employers?

This new flexibility is great for employees, but it adds some complications to how employers manage leave. When an employee designates someone outside of the traditional family structure, it can lead to challenges in tracking time off and ensuring compliance with updated laws.

Here’s why it matters:

Multiple Types of Leave

Employees can now take unpaid CFRA leave to care for a designated person and paid sick leave under the HWHFA for another designated person. That’s two different types of leave with two potentially different individuals involved.

One Designation Per Year

Employers can limit employees to one designated person per 12-month period, but keeping track of this limit can be tricky, especially when employees use multiple types of leave for various reasons.

If your company operates in California, you’ll need to update your leave policies and educate your team on how to track these new leave entitlements. Managing these changes will help avoid future compliance headaches.

How Does the CFRA Compare to the FMLA?

The CFRA has long allowed employees to take leave to care for family members with serious health conditions. Still, with the inclusion of a “designated person,” this state law now offers even broader protections than the federal Family and Medical Leave Act (FMLA).

Here’s the key difference: While the FMLA and CFRA both allow leave for immediate family members like a spouse, parent, or child, the CFRA now extends that list to include anyone with a significant personal relationship with the employee.

For employers, this means that while you might be managing FMLA leave at a federal level, you’ll also now need to ensure your California employees are granted the more expansive protections the CFRA provides.

California employees could be off work for extended periods — potentially up to 24 weeks — when using both CFRA and FMLA leave in the same year for different individuals.

What Is the Overlap Between Paid Family Leave (PFL) and CFRA?

California’s Paid Family Leave (PFL) program provides employees with wage replacement benefits when they take time off to care for a family member. However, PFL doesn’t automatically align with the CFRA’s new designated person standards.

Here’s what that means in practice:

Employees can take CFRA leave to care for a designated person, but that leave may be unpaid unless they have other paid leave options like vacation or paid time off (PTO).
PFL benefits cover family members like a spouse, parent, or child but don’t extend to a designated person under these new standards. Employees might have job protection for unpaid CFRA leave but won’t necessarily receive wage replacement from PFL unless the individual fits within its narrower criteria for family members.

This creates a bit of a mismatch between job-protected leave and paid leave, and it’s something employers should clarify in their policies to avoid confusion.

What Are the Local Ordinances Involving CFRA?

California state law is one thing, but local ordinances can add another layer of difficulty for business compliance. Certain cities, like Berkeley and San Francisco, already had their own paid sick leave ordinances before CFRA came into play.

In these cities, employees could designate a person to care for under local paid sick leave laws. Now, with the addition of state laws allowing a designated person, employees could potentially designate two different individuals for leave under state and local ordinances.

That means your HR team will need to closely monitor how these local ordinances interact with the new state-level rules.

How Does Kin Care Fit In With the CFRA?

Another related piece of legislation is California’s “kin care” law, which allows employees to use a portion of their accrued sick leave to care for a family member. This law references the HWHFA’s definition of a family member, but it doesn’t automatically update when the HWHFA’s definition changes.

As of now, it’s unclear whether kin care will extend to designated persons under CFRA. That creates uncertainty for employers trying to balance kin care leave with new designated person standards. Watch for updates from California’s Labor Commissioner for future guidance.

What Are Practical CFRA Tips for Employers?

Dealing with these changes in California leave law may feel overwhelming, but there are clear steps you can take to stay on top of it all:

Update Your Leave Policies

Make sure your employee handbooks and leave policies reflect the new designated person standards. Clearly explain how employees can designate a person and what limits apply (like the one-person-per-year rule).

Educate Your HR Team

Ensure your HR team is fully trained on the updated laws and understands how to track different types of leave. Accurate tracking is key to staying compliant.

Monitor Local Ordinances

If you operate in multiple cities within California, keep a close eye on how local ordinances interact with state laws. Consider working with legal counsel to confirm your leave policies are compliant and consistent.

Communicate Clearly With Employees

Employees should know their rights and how to use leave under these new standards. Clear, straightforward communication can help avoid misunderstandings about their entitlements.

Stay Informed

Updates are common with laws like this. Stay informed with guidance from California’s Civil Rights Department and the Labor Commissioner, and adjust your policies as needed.

Monitoring California’s evolving leave laws may feel like a balancing act, but remaining proactive can make a big difference. By updating your policies, training your HR team, and communicating effectively with your employees, you can smoothly manage these new designated person standards.

Remember, compliance is about more than just ticking boxes. Rather, it’s about creating a workplace where employees feel supported when they need it most. Stay ahead of the curve by keeping your policies flexible and ready for changes that come your way.

How To Stay Compliant

Keeping your business compliant with California’s leave laws is more important than ever with the introduction of new designated persons. These updates provide flexibility for employees, but they also mean employers need to stay on top of tracking and managing leave requests.

Clear documentation is key. When an employee designates someone for leave, make sure you’ve got the systems in place to record who that person is and when the leave was taken.

Keeping things organized can be difficult for large and small companies alike, but with the right tools and processes, you can stay ahead. For instance, Mosey’s compliance management platform makes it easier than ever by automating all the tricky parts so you can focus on growing your business.

Manage CFRA With Mosey

The new “designated person” standards in California bring significant changes to how employers manage employee leave. While these changes provide more flexibility for workers, they also introduce new challenges for businesses, especially when it comes to tracking and managing leave.

Need help with California’s new leave laws? Schedule a free demo with Mosey to see how we can simplify your payroll compliance and keep your business running smoothly.

The Platform for State and Local Compliance