Paid family leave allowance for small employers

California’s Paid Family Leave (PFL) program, which is administered by the Department of Employment Development (EDD), provides eligible employees with up to 8 weeks of salary replacement benefits when an employee is absent from work. work for certain qualifying reasons.

Companies whose employees use PFL may have increased costs, such as cross-training existing staff and hiring and training new employees and/or temporary employees to replace furloughed employees. This may be especially true for small employers. To help address these issues, the California Employment Training Panel and the California Labor and Workforce Development Agency funded a grant program for small employers.

California small businesses with 1-100 employees that have at least one employee using PFL on or after June 1, 2022 may be eligible. In addition, to be eligible for the grant, companies must:

  • Be registered to do business in the State of California
  • Have active status with the office of the California Secretary of State
  • Have an active California employer account number under which employees are listed for payroll.

Small businesses that use a Professional Employer Organization (PEO) for payroll services are not eligible for the subsidy.

Employers interested in applying for the grant can apply through the grant website:

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