Statement on AB 123 Veto
We are deeply disappointed to see that Governor Newsom has vetoed AB 123 (Gonzalez). AB 123 represents what California needs: an increase in wage replacement rates for State Disability Insurance (SDI) and Paid Family Leave (PFL) so that every Californian can bond with a new child, care for a seriously ill family member, or recover from their own serious illness without risking financial devastation.
State Disability Insurance (SDI) and Paid Family Leave (PFL) form a critical social safety net for California workers and their families. While we have made progress in making these programs more accessible, because SDI and PFL provide only 60% of most workers’ wages, actually taking leave from work remains out of reach for many Californians who are already struggling to afford the basics on 100% of their pay. This is unacceptable. The COVID-19 crisis has highlighted both the importance of these programs and the barriers that workers face in accessing them. It is critical that low-wage workers receive a higher wage replacement rate of 90% in order to make ends meet while on leave.
In his veto message, the Governor expressed concern about increased contributions paid by employees to fund higher wage replacement rates for SDI and PFL. We share the goal of increasing wage replacement rates without overburdening workers.
We look forward to partnering with the Governor’s office and the California Legislature next year to achieve the goals of Governor Newsom’s Paid Family Leave Task Force and Master Plan for Early Learning and Care to increase wage replacement rates without over-taxing low-wage workers. We are committed to winning Paid Family and Medical Leave that works for all workers and families.
The California Work & Family Coalition is a statewide alliance of community organizations, unions, non-profits, and individuals dedicated to helping parents, caregivers, and families thrive. We are united in the belief that all people should have the time and resources to care for themselves and each other.
