San Francisco is cutting the time an employee must work before qualifying for paid parental leave benefits in half. On August 7, 2026, Mayor Daniel Lurie signed Ordinance No. 162-26 (File No. 260451), which reduces that eligibility requirement under the City's Paid Parental Leave Ordinance (SF PPLO) from 180 days to 90 days. The change reaches employers in stages: January 1, 2027 for those with 100 or more employees, and January 1, 2028 for those with 20 to 99.
What Is the San Francisco Paid Parental Leave Ordinance?
San Francisco adopted the SF PPLO in 2016 so that employees taking leave to bond with a new child would not have to do so on partial pay. The ordinance does not itself provide leave or time off. It is a wage requirement that operates alongside California Paid Family Leave (CA PFL), the state program that replaces a portion of an employee's wages during bonding leave.
- How it works. When a covered employee receives CA PFL benefits for new child bonding during the first year following birth or placement through adoption or foster care, the state pays a portion of the employee's usual weekly wages. The SF PPLO requires the employer to pay the remainder for up to eight weeks. That employer payment is known as supplemental compensation, and it is calculated using a formula set out in the ordinance.
- The weekly cap. The ordinance caps the total combined weekly amount an employee may receive from CA PFL benefits and employer-paid supplemental compensation. The San Francisco Office of Labor Standards Enforcement (OLSE) adjusts the cap annually. For claims filed in 2026, it is $2,522, up from $2,402 in 2025. OLSE publishes a Paid Parental Leave calculator employers may use to determine the correct amount.
- Employer obligations. Covered employers must display the OLSE Paid Parental Leave poster at each workplace, include information about the law in their employee handbook, and provide the Paid Parental Leave form to an employee once the employee gives notice that they will become a parent. OLSE publishes the poster and the form in English, Chinese, Spanish, Filipino, and Vietnamese.
Which Employers Does the SF PPLO Apply To?
The ordinance applies to private employers with 20 or more employees. Employees are counted regardless of location, so an employer with a small San Francisco workforce may still be covered based on its total headcount. Employers with 19 or fewer employees are not covered, and the amendment does not change that threshold.
What Changed?
The amendment made a significant change. To qualify for supplemental compensation, an employee previously had to have commenced employment at least 180 days before the start of the leave period. Now, that requirement is reduced to 90 days, which aligns the SF PPLO with San Francisco's Paid Sick Leave Ordinance, under which employees may begin using accrued paid sick leave after 90 days of employment.
The amount of supplemental compensation, the eight-week maximum, and the employer poster, handbook, and form obligations all remain unchanged.
When Does the New Requirement Take Effect?
The reduced requirement does not take effect for all covered employers at once. The 180-day requirement remains in place on a staggered schedule based on employer size:
- Employers with 100 or more employees. The 180-day requirement continues to apply through December 31, 2026. The 90-day requirement applies to leave periods beginning on or after January 1, 2027.
- Employers with 20 to 99 employees. The 180-day requirement continues to apply through December 31, 2027. The 90-day requirement applies to leave periods beginning on or after January 1, 2028.
As a result, no employee becomes newly eligible during 2026.
Which Employees Qualify?
The ordinance defines a covered employee by four criteria, and the amendment changes only the first. To receive supplemental compensation, an employee must:
- Have commenced employment with the covered employer at least 90 days before the leave period begins, reduced from 180 days and subject to the compliance dates above;
- Perform at least eight hours of work per week for that employer within the geographic boundaries of San Francisco;
- Work at least 40% of their total weekly hours for that employer within the geographic boundaries of San Francisco; and
- Be eligible to receive CA PFL benefits for the purpose of bonding with a new child.
Part-time and temporary employees may qualify. Where an employee's weekly hours fluctuate, OLSE determines whether the eight-hour and 40% requirements are met by averaging the employee's weekly hours over the pay periods immediately preceding the start of the CA PFL period, disregarding any pay period during which the employee was on leave.
Next Steps
Covered employers should monitor the OLSE Paid Parental Leave Ordinance webpage for updated guidance, posters, and forms, and should review their parental leave policies and procedures to confirm they will comply with the revised requirement.
*Special thanks to CDF law clerk Grace Pating for her research and contributions to this article.
