In 2002, California was the first state to create a paid family leave insurance, the California Paid Family Leave (PFL) program.  The PFL program extended California’s existing temporary disability insurance fund to caregiving and bonding claims; previously the fund was only available for claims for a worker’s own health condition.  Workers who contribute to the temporary disability insurance fund, known as the State Disability Insurance (SDI) program, are entitled to six weeks of partial pay each year while on leave to bond with a newborn baby, adopted or foster child, or care for a seriously ill parent, child, spouse or registered domestic partner.  Workers may receive up to 55% of their weekly wages as their maximum weekly benefit amount. As of 2010, the maximum weekly benefit amount is $987.

The PFL program is entirely funded from worker contributions. Workers pay a small payroll deduction of 1.1 percent of salary. The average worker contribution in the fiscal year 2009-2010 was $465.27. The vast majority of private employees in California contribute to the SDI fund and are eligible to participate in the PFL program. There are no employer size, job tenure or hours requirements to participate in the program – workers who have contributed at least $300 to the SDI fund during a designated base period are eligible to participate.  Employers can require their workers to use two weeks of their paid vacation time before they receiving paid family leave benefits. Lastly, the six weeks of PFL benefits run concurrently with federal and state leave laws.  The PFL program does not extend leave guaranteed under the FMLA or relevant state laws;  the program simply ensures that six of those weeks are paid.