You've probably seen that deduction on your paycheck stub for years. It’s usually a tiny sliver labeled "CASDI" or something similar, and honestly, most of us just ignore it until we actually need it. But things changed big time in 2025 and 2026. If you're looking into the California paid family leave expansion, you’re likely realizing that the old rules—the ones where you only got about 60% or 70% of your pay—are basically dead and buried for most workers.
It’s about time.
For a decade, California bragged about being a leader in worker rights, yet the math didn't always add up for the people living here. If you’re making $25 an hour in Los Angeles or the Bay Area, taking a 30% pay cut to bond with a new baby isn't just a "sacrifice." It’s a fast track to missing rent. That’s the gap the recent expansion finally tried to bridge.
The big shift in wage replacement
The meat of the California paid family leave expansion sits right in the percentage of your salary you get to keep while you’re out. Under Senate Bill 951, which paved the way for these changes, the state overhauled the formula used by the Employment Development Department (EDD).
Here is the deal: if you are a low-to-medium income earner—specifically those making less than 70% of the state’s average weekly wage—you are now eligible for up to 90% of your regular pay. That is huge. We are talking about the difference between barely scraping by and actually being able to focus on a sick family member or a newborn. For higher earners, the benefit is still capped, but the floor has been raised significantly.
Why did they do this?
Because the data was embarrassing. Groups like the California Budget & Policy Center pointed out for years that the people paying into the system the most—low-wage workers—were the ones least likely to use it. They literally couldn't afford to take the "paid" leave because it didn't pay enough.
Does everyone get the 90%?
Not exactly. California's system is tiered. If you’re a high flyer making $200k a year, you aren't getting 90% of that from the state. The EDD has a maximum weekly benefit amount that adjusts annually. For 2026, that cap is tied to the state average weekly wage, ensuring that even if you don't hit that 90% mark, your check is more substantial than it would have been five years ago.
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It's also worth noting that this isn't just for "traditional" families. The definition of who you can take leave to care for has expanded. We’re talking parents, kids, spouses, registered domestic partners, grandparents, grandchildren, siblings, and now, "designated persons."
Basically, if you have a "chosen family" member who needs serious medical care, you might be covered. You just have to name that person when you file the claim.
The removal of the taxable wage cap
Now, someone has to pay for this. That’s the part that ruffled feathers in the business community. To fund the California paid family leave expansion, the state did something bold: they eliminated the cap on earnings subject to the SDI (State Disability Insurance) tax.
Previously, if you made over a certain amount (around $153,000 in 2023), you stopped paying into the system once you hit that ceiling. Not anymore. Now, every dollar you earn is taxed at the SDI rate. If you're a software engineer making $400,000, you're seeing a much larger chunk taken out of your check than you did a few years ago.
It’s a redistribution model.
The state is gambling that the high-earners won’t miss the extra couple thousand dollars a year as much as a retail worker misses 30% of their monthly grocery budget. It’s controversial. Business groups like the California Chamber of Commerce have voiced concerns about the cumulative cost of doing business in the state, but for now, the 100% contribution model is the law of the land.
Wait, is my job actually safe?
This is the "gotcha" moment for a lot of people.
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Paid Family Leave (PFL) is a money program. It is not a job protection program.
This is a massive point of confusion. Just because the EDD is sending you checks doesn't automatically mean your boss has to hold your desk for you. For job protection, you have to look at the California Family Rights Act (CFRA) or the federal FMLA.
The good news? Recent expansions have made CFRA apply to almost all employers with 5 or more employees. So, while the PFL expansion gives you the cash, the CFRA expansion gives you the right to come back to work. You need both to sleep at night. If you work for a tiny startup with only three people, you can get the paid leave money, but your employer technically might not have to keep your position open. It’s a weird, stressful loophole that still exists.
Real world impact: More than just babies
When we talk about the California paid family leave expansion, the conversation usually drifts toward Diaper Genies and strollers. But the 2026 reality is much grimmer and more common: the "Sandwich Generation."
Take Sarah in Riverside. She’s 45, has a teenager at home, and her father just had a stroke. Ten years ago, Sarah would have had to quit her job or take unpaid leave to manage his rehab. Now, she can take eight weeks of PFL to care for him. With the 90% wage replacement (since she works in hospitality), she isn't losing her car while she helps her dad learn to walk again.
That’s the "human quality" of this policy. It’s about the fact that life is messy and humans break.
- Bonding: Mothers, fathers, and foster parents.
- Caregiving: Seriously ill family members (now including "designated persons").
- Military Assist: Helping out when a family member is deployed.
The duration is also a factor. We're currently at eight weeks of paid leave. There's constant chatter in Sacramento about pushing that to 12 weeks to match the job-protection timelines, but we aren't there yet.
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How to actually get your money without losing your mind
Dealing with the EDD is... a journey. Honestly, it’s often a headache. Despite the California paid family leave expansion making the benefits better, the tech behind it is still catching up.
You have to be proactive.
- File online: Do not mail paper forms unless you absolutely have to. The SDI Online portal is faster, though "fast" is a relative term when talking about state agencies.
- Timing is everything: You can't file before your leave starts, but if you wait longer than 41 days after your leave begins, you might lose your benefits.
- The Medical Certificate: This is where most people trip up. Your family member’s doctor has to fill out their portion. If they lag, your money lags.
- The 7-Day Waiting Period: For Disability Insurance, there's a waiting period. For Paid Family Leave? There isn't one. You should get paid from day one of your leave.
The "Designated Person" quirk
If you are using the expansion to care for someone who isn't a legal relative, listen up. You can only designate one "person" per 12-month period. You can't claim leave for your best friend in January and your neighbor in June. Choose wisely. This was a hard-fought win for the LGBTQ+ community and people without traditional nuclear families, but it has strict guardrails to prevent fraud.
Looking ahead: Is 100% replacement next?
There is already a movement—spearheaded by advocates like Legal Aid at Work—to push wage replacement to 100% for those at the bottom of the pay scale. They argue that if you're making minimum wage, even a 10% hit is enough to cause an eviction.
Critics say the fund can't take much more. They worry that if the economy dips and claims rise, the SDI tax (which is currently uncapped) will have to skyrocket, driving more high-earners and businesses out of the state. It’s a delicate balance. California is currently an experiment in whether a high-tax, high-benefit social safety net can survive long-term.
Actionable steps for California workers
If you're planning on using these benefits in 2026, don't wait until the last minute to figure it out.
- Check your paystub today. Look for the SDI deduction. If you don't see it, you might be in a "voluntary plan" (some big tech companies have their own version) or you might be misclassified as an independent contractor. If you're a 1099 worker, you generally don't get PFL unless you've been paying into Elective Coverage.
- Talk to your HR. Ask specifically about the "California Family Rights Act" (CFRA) and how it overlaps with PFL. You want to confirm in writing that your job is protected while you receive those state checks.
- Estimate your benefit. Use the EDD's online calculator. Plug in your highest-earning quarter from the last 18 months. Because of the California paid family leave expansion, the number it spits out will likely be much higher than what your friends got just a few years ago.
- Organize your medical contacts. If you're caring for a parent or partner, make sure you have their physician's contact info ready. You'll need to provide this to the EDD so they can verify the "serious health condition."
- Budget for the tax man. Here’s a kicker: PFL is generally not taxable by the State of California, but it is taxable by the federal government. When tax season rolls around, you might owe the IRS a portion of that leave money. Set aside 10% of every EDD check into a savings account so you aren't blindsided in April.
The system isn't perfect, but it's a hell of a lot better than it used to be. The expansion has essentially turned PFL from a "luxury" for the middle class into a functional safety net for almost everyone who receives a W-2 in the Golden State. Just make sure you do the paperwork right, or the expansion won't mean a thing for your bank account.